Why Nearmap Ltd is among 3 small caps taking flight

A well-diversified share portfolios could have some speculative small cap shares within them.

These 3 small cap companies are flying at 52-week highs.

Bravura Solutions Ltd (ASX: BVS)

Shares in wealth management software products company Bravura Solutions Ltd are up 2.56% at the time of writing to $2.40 – a 52-week high for the small cap.

Bravura shares were priced at $1.56 this time last year, and last week’s news that private equity firm Ironbridge had sold down its remaining stake in the company has failed to knock the share from its high.

Ironbridge first invested in Bravura in 2009 and sold some of its portfolio stake after Bravura listed on the ASX in 2016, but now has no financial interest in the company – although Ironbridge’s CEO Neil Broekhuizen will remain on the Bravura board as a non-executive director.

Ironbridge’s sell down coincided with a buy in by investment management group Copia Investment Partners, which is now a substantial shareholder in Bravura with a 5.25% stake.

Bravura has clients in the wealth management and fund administration space across the Asia-Pacific, Europe, the Middle East and Africa, with LGIA Super recently taking up usage of Bravura’s superannuation administration platform and Foresters Friendly Society taking up Bravura’s Garradin investment management and portfolio administration platform.

It is clear Bravura is continuing to assert itself in the fintech software provider space, and is certainly one to watch for growth.

TOX Free Solutions Limited (ASX: TOX)

Shares in integrated waste management and industrial service provider TOX Free Solutions opened steady today at $3.45 at the time of writing – a 52- week share price high.

TOX shares have rocketed up from their price of $2.18 after the announcement of a takeover offer from Cleanaway Waste Management.

TOX reported revenue up 7% on the previous corresponding period to $255.3 million an underlying NPAT rise of 8% to $11.2 million and underlying EBITDA up 8% to $40.5 million.

Operationally TOX is doing well in its Darwin and Kimberly regions.

Nearmap Ltd (ASX: NEA)

Shares in geospatial map technology provider Nearmap Ltd are up 3.32% at the time of writing to a 52-week high share price of 99c per share.

Nearmap provide business, enterprise and government customers with geospatial map technology – working across the building and construction, architectural, government, insurance, rail, real estate, roofing and solar industries.

Investors have rallied behind Nearmap in the last 12 months, with the share price almost doubling from 58c per share at this time last year.

Nearmap’s half-year results, handed down on February 21, showed record growth, with the company’s annualised contract value up 31% and global customer numbers now at more than 8,200.

Nearmap logged revenue of $24.7 million which was a 27% rise on the previous corresponding period.

The company has maintained its FY18 targets and will be one to watch in the unique segment in which it operates.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Bravura Solutions Ltd. The Motley Fool Australia has recommended Tox Free Solutions Ltd. 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 Scott Phillips.

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