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3 small-cap shares with strong growth potential

I think the Australian share market is home to a great number of small-cap shares with significant long-term growth potential.

Thee such shares from different areas of the share market are listed below. Here’s why I like them:

Money3 Corporation Limited (ASX: MNY)

I’ve been very impressed at the way Money3 has successfully transitioned away from controversial payday loans to secured automotive loans. The strong performance of its auto loans led to above-average earnings growth in FY 2017. I expect this to continue thanks to its new debt facility that will give it the capacity to almost double its market share. A further bonus is its dividend which currently provides investors with a trailing 3.4% yield which is growing fast.

National Veterinary Care Ltd (ASX: NVL)

Another company growing quickly is National Veterinary Care. Over the last 12 months the company has grown its clinic network here and in New Zealand at a solid rate. Pleasingly, due to the highly fragmented nature of the veterinary industry, I believe there is still a significant growth opportunity for the company over the next decade through acquisitions. Last year National Veterinary Care delivered a 25% increase in revenue and management expects to exceed this level of growth in FY 2018. Its shares may have rallied strongly recently, but I believe there is plenty of growth ahead for this star performer.

Volpara Health Technologies Ltd (ASX: VHT)

I think this digital health company could have an exceptionally bright future ahead of it thanks to its impressive piece of technology. Volpara’s technology enables personalised, high-quality breast cancer screening based on automated, objective measurements of breast density, compression and radiation dose. Even though annual recurring revenues have been growing at a rapid pace, management expects this to accelerate and meet or exceed its lofty full-year 200% growth target.

Finally, here are three more exciting small-cap shares with enormous growth potential.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of NATVETCARE FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended Money3 Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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