It hasn’t just been large cap shares such as BlueScope Steel Limited (ASX: BSL) and Ramsay Health Care Limited (ASX: RHC) pushing higher today, there have been some big moves in the small cap space as well.
Three that caught my eye are listed below. Here’s what sent them storming higher:
The Cash Converters International Ltd (ASX: CCV) share price is up 4% to 39 cents. This morning the company released its half-year results which revealed a net profit after tax of $9.4 million. This was ahead of guidance and up 2.2% on the prior corresponding period. In addition to this, Cash Converters finished the half with a total loan book of $155.7 million, up 35.2% from 30 June 2017. Pleasingly, management anticipates a strong second-half leading to further growth in net profit after tax. Whilst I have been impressed with the company’s transformation, I still think it is a little too soon to get overly excited and would suggest investors hold off for a couple more halves of consistent growth.
The Money3 Corporation Limited (ASX: MNY) share price has pushed 7% higher to $1.82 after another strong half from the financial services company resulted in a 13.3% increase in half-year net profit after tax to 15.5 million. Once again it was the strong demand experienced by the company’s secured auto loans business that was the key driver of its impressive performance. Money3 finished the half with a gross loan book of $234.6 million, an increase of 24.7% year on year. Despite its strong growth, management estimates its share of the market is still only 2% and aims to increase this to 3% within the next 12 months. I think Money3 has a long runway for growth ahead of it and is a great option for investors today.
The Over The Wire Holdings Ltd (ASX: OTW) share price is up 8.5% to $3.04 and is within sight of its all-time high. Investors have clearly been impressed with the telecommunications and IT service company’s half-year results release this morning. That release revealed a 72% increase in total first-half revenue to $24.05 million and a 62% lift in first-half EBITDA to $4.9 million. This growth was generated both organically and through the acquisition of VPN Solutions which completed on November 1 2017. Pleasingly, it looks like more of the same in the second-half. Management advised that it expects VPN Solutions to contribute significantly in the second-half of 2018, as the company further realises the value of its acquisitions. This could make it one to watch.