After a slow start to the year the Small Ordinaries (Index: ^AXSO) (ASX: XSO) has really taken off during the last two months. During this time the small-cap index has put on a gain almost 9%.
Due to the high quality on offer in the small-cap space, I expect this outperformance could continue in December and through into 2018.
In light of this, here are three small-cap shares on my shopping list:
National Veterinary Care Ltd (ASX: NVL)
Over the last 12 months National Veterinary Care has grown its clinic network both at home and over in New Zealand at a solid rate. Due to the highly fragmented nature of the industry, I believe there is still a significant growth opportunity for the company over the next decade. Especially with pet ownership at elevated levels in both countries. In FY 2017 the company delivered a 25% increase in revenue and management expects to exceed this level of growth in FY 2018.
Swift Networks Group Ltd (ASX: SW1)
Swift Networks provide in-room entertainment and telecommunication services to hotels, aged care providers, student accommodation, and resources companies. Whilst I think the company's biggest opportunity is in the aged care sector due to Australia's ageing population, I have been impressed at the rapid adoption of its services by mining companies such as OZ Minerals Limited (ASX: OZL) and Pilbara Minerals Ltd (ASX: PLS). These companies now use Swift's entertainment and telecom services to entertain the majority of their fly in, fly out workers.
Zenitas Healthcare Ltd (ASX: ZNT)
Thanks to the fact that the National Healthcare Reform aims to push the burden of healthcare services from hospitals into primary care, I think this recently listed home care and health services company is well positioned to profit. Like National Veterinary Care, Zenitas operates in a highly fractured industry which provides it with ample opportunities to grow through acquisitions as well as organically.
