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These 3 small-cap shares posted strong gains today

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Credit: Kristian Niemi

While Sirtex Medical Limited (ASX: SRX) will take the headlines for its 46% gain today, it wasn’t the only share posting strong gains.

Three shares at the small cap end of the market that made a notable move higher are listed below. Here’s why:

The Change Financial Ltd (ASX: CCA) share price is up 3.5% to an all-time high of $1.17. This morning the fintech company released its second-quarter update which revealed record transaction volume growth of 17%, deposit growth of 18%, and purchase growth of 16% for its consumer division quarter-on-quarter. According to the release, Change Financial now has 150,000+ direct to consumer customers using its award-winning ChimpChange Mobile Banking platform and received customer deposits of more than US$19.2 million during the December quarter. I’ve been very impressed with its growth, though I do have slight concerns over its cash outflows. Its cash balance was reduced to $4.8 million from $6.7 million during the latest quarter. At the current burn rate I would estimate this will be enough for three more quarters.

The Gage Roads Brewing Co Limited (ASX: GRB) share price is 4.5% higher at 9.3 cents following the release of its quarterly update. Although the company recorded an unaudited EBITDA result of $1.3 million for the first-half, down from $2.8 million for the prior corresponding period, the result was in line with expectations. This was largely due to the $0.9 million of non-recurring income in the prior corresponding period and a $1.1 million increase in sales and marketing compared to the prior period. While I’m not ready to hit the buy button, I do think Gage Roads could be one to watch. Especially if its contract with Optus stadium proves to be a success.

The Oliver’s Real Food Ltd (ASX: OLI) share price jumped 15% to 26.5 cents after its quarterly update revealed cash receipts of $10.5 million and net operating cash inflow of $1.8 million for the three months ending December 31. This was a sizeable increase on the $7.7 million and $5,000, respectively, it delivered in the September quarter. In light of this much improved performance, I think the healthy fast food company is worth a closer look. And considering the ongoing consumer shift away from junk food to healthy options, I think Oliver’s could have a bright future ahead of it.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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