Skip the celebrity news pages and turn your attention to these three small-to-medium ASX listed companies if you’re looking for something to study while you’re kicking back with a coffee this weekend.
Paragon Care Ltd (ASX: PGC)
Aged care service provider Paragon Care Ltd may only be a $235 million market cap company right now, but it’s part of a burgeoning industry and it’s putting some pretty solid efforts into growing its market presence.
Paragon has made more than 10 acquisitions in the past seven years with its most recent uptake of highly-regarded New Zealand healthcare business REM SYSTEMS Limited for NZ$54.4 million – comprising of NZ $43.9 million in cash and 20% in fully paid ordinary shares in Paragon.
REM has a forecast FY18 revenue of NZ$68 million and EBITDA of NZ $7.2 million with strong organic growth recorded over recent years and a stronghold in New Zealand’s acute care hospitals, day surgeries and allied health care clinics market.
Paragon looks well set to grow exponentially over the medium term and with its share price sitting at 83c – up only slightly from its 75c share price at this time last year – opportunities for buy-ins look imminent.
One to do some due diligence on given its aggressive growth strategy.
Wagners Holding Company Ltd (ASX: WGN)
Diversified Australian construction materials company Wagners Holding Company Ltd booked some strong half-year results back in February with pro forma NPAT growth of 50% to $14.3 million and pro forma revenue up 22.7% to $121.2 million.
The results were underpinned by growth in cement volumes, with an 18% increase on the previous corresponding period and all performance in line with prospectus forecast and its construction materials and services business performing at significantly increased revenue and EBITDA levels.
Wagners was added to the All Ordinaries Index in March and has a third concrete plant commissioned in Pinkenba to join its already-established network in South East Queensland.
One to watch as it continually delivers on growth plans and continues to mop up market share.
Speedcast International Ltd (ASX: SDA)
Plenty of investors have added satellite-based communications network service provider Speedcast International to their watch list in recent times, as the emerging $1.45 billion market cap company has continued to win contracts and reduce debt.
The Speedcast share price has rocketed up 58% from its $3.83 share price at this time last year to land at $6.08 at the time of writing, with very few dips in between.
Speedcast is fast asserting itself as a leading global remote communication provider in a market that is only set to expand.
If it can continue to leverage off favourable industry trends the future certainly looks bright for Speedcast and its recent acquisitions demonstrate a strong strategic rationale to expand into high-growth industries and markets.
One to keep an eye on.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Paragon Care 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 Scott Phillips.