A new year is upon us, so what better time to look at your portfolio and see if there are any additions that could help take it to the next level.
If you're interested in gaining a bit of exposure to small cap shares, then the five small caps listed below could be worth a look. I'm tipping them to be the small cap stars of 2019.
Citadel Group Ltd (ASX: CGL)
Citadel Group is a software and services company that specialises in IT security and data management. I believe it is well positioned for growth in FY 2019 thanks to its Citadel-Information Exchange (Citadel-IX) cloud-based enterprise information management platform. This platform allows users to securely access and transfer proprietary and sensitive information remotely.
ELMO Software Ltd (ASX: ELO)
ELMO is a leading provider of cloud-based human resources and payroll software solutions. Demand for its software has been growing so strongly it recently reported first quarter cash receipts growth of 91% on the prior corresponding period to $10.3 million. Due to the quality of its offering, I feel confident that there will be more of the same over the course of FY 2019.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a digital workplace platform provider which has really caught the eye this year due to its stellar revenue growth. Thanks to its close relationship with Microsoft and the appointment of a dedicated sales force, in the first quarter of FY 2019 LiveTiles reported a 272% increase in annualised recurring revenue on the prior corresponding period.
Megaport Ltd (ASX: MP1)
Megaport is a provider of elastic interconnection services across a growing number of data centres globally. With the cloud computing boom continuing to gather pace and data consumption rising strongly, I expand demand for its services to grow strongly in the future. Megaport has had a positive start to FY 2019 and recently reported a 20% increase in its monthly recurring revenue to $2.4 million.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a healthcare technology company that provides an increasingly popular breast imaging analytics and analysis software. This software has been growing its share of the U.S. breast screening market at an impressive pace and shows no signs of slowing any time soon. It is targeting a 9% share of the U.S. market in FY 2019, up from 3.2% at the end of FY 2018.
