Reporting season can often throw light on under-the-radar small-cap superstars that investors may not have thought to have on their watchlist.
These three players are worth a look.
Here's why.
Noni B Limited (ASX: NBL)
With a $344 million market cap, it is easy to overlook women's apparel and accessories retailer Noni B Limited.
But the small cap has logged an impressive performance for FY18, with the highlight being the acquisition of key brands from Specialty Fashion Group Ltd. (ASX: SFH).
Noni B's total group revenue increased 17.6% to $372.4 million for FY18 with like-for-like sales growth of 4.5% overall and a statutory profit after tax increase of 431.6% to $17.3 million.
Noni B's underlying EBITDA increased 62.7% over the period to $37.2 million with a fully-franked final dividend of 4c per share after a 9c per share interim dividend was paid out in March 2018.
Noni B leveraged off continued improvement out of its Pretty Girl brands over FY18 with a significant investment made into online systems leading to online sales jumping up 67.8% from FY17 to represent 5.8% of group sales.
Noni B operates in an increasingly competitive market, and investors keen on retail stocks should keep their eye on other retail performers, including Premier Investments Limited (ASX: PMV) and Adairs Ltd (ASX: ADH).
While Noni B shares look quite expensive right now it's one to watch for a possible buy-in and there are no signs of a slowdown on the horizon just yet.
People Infrastructure Ltd (ASX: PPE)
Workforce management company People Infrastructure Ltd reported strong FY18 results recently, with a pro forma NPATA rise of 34.9% to $8.4 million – 12.7% above prospectus forecast.
The company's pro forma EBITDA also came in 8% above prospectus forecast at $13 million, a rise of 26.8% from FY17.
People Infrastructure provide workforce solutions to clients across Australia and New Zealand, growing both its current and new client base throughout FY18 with the growth trajectory of the business well and truly on track.
People Infrastructure recently acquired Network Nursing Agency, and with strong operating cash flow generated throughout FY18, are well-positioned to pursue other growth opportunities that arise in the near future.
With net debt of $7.65 million, People Infrastructure is a $133 million market cap company, so it obviously has a lot of growing to do, but I would argue it's one worth watching in the near future as the Network Nursing acquisition effects begin to filter through.
PWR Holdings Ltd (ASX: PWH)
Customised cooling company in the motorsports space, PWR Holdings Ltd, booked an underlying NPAT surge of 30% to $12 million for FY18, with revenue up 8% to $52 million with total FY18 dividends of 7.3c per share, fully-franked.
On fundamentals, PWR has zero net debt and a strong cash position with operating cash flow up 23% from FY17 and ongoing efficiency improvements allowing the company to optimise benefits of its multiple manufacturing sites in Australia and the USA.
Looking ahead, PWR has a new facility at Ormeau for research and development to assist its focus on F1 product manufacturing with prior investment in emerging technologies expected to convert to revenue streams in FY19.
As PWR works to strengthen its global distribution channels, especially in Europe, things could continue on the up for the company for the foreseeable future.
While its shares are sitting about 35% above their price point at this time last year I'd keep an eye on the right time to buy into this one as a serious speculative option.
