Due to having a higher than average tolerance for risk, I’m a big fan of small cap shares.
Luckily for me there are a large number of them on the Australian share market with strong growth potential.
Three that I have my eyes on at the moment are listed below:
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio company that develops hardware and software solutions for the professional audio-visual industry. Its key offering is its Dante media networking technology which has been adopted by the leading manufacturers and professionals in the audio-visual industry. In FY 2018 Audinate achieved revenue of $19.7 million, up 30% on the prior corresponding period. This strong top line growth allowed the company to post positive EBITDA of $0.6 million for the period, compared to its prospectus forecast of a $1.2 million loss.
Food Revolution Group Ltd (ASX: FOD)
Food Revolution is a juice company which I think is well worth keeping a close eye on. It is the company behind the Juice Lab, Thirsty Brothers, and Bucha Shop Kombucha brands which can be found on the shelves of supermarkets including Wesfarmers Ltd (ASX: WES) operated Coles. This morning it advised that it will launch four new 2-litre Not From Concentrate juices under the Thirsty Brothers brand into Woolworths Limited (ASX: WOW) supermarkets replacing three existing products. The company is aiming to grow its distribution and product expansion from ~$35 million to up to $500 million within three to five years.
Serko Ltd (ASX: SKO)
Serko is a travel and expense technology solution provider that I have my eyes on. Its online booking tool provides clients with access to a wide variety of travel providers including low cost carriers. The company recently signed a letter of intent with travel agent giant Flight Centre Travel Group Ltd (ASX: FLT) to develop unique product offerings based on Serko’s travel management technology. I believe this is a testament to the quality of its product. This year management expects revenue growth in the range of 20% to 30%.
Do you like small caps? Then you'll love these fast-growing shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. 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.