If you're looking for a little exposure to the small side of the market, then you're in luck because there are a good number of small cap shares on the Australian share market which have strong long-term growth potential.
Three to add to your watchlist are listed below. Here's why I like them:
Alcidion Group Ltd (ASX: ALC)
Alcidion is an informatics solutions provider which I think could be one to keep a close eye on. It provides healthcare analytics software that is used by hospitals and healthcare providers. The software improves the efficacy and cost of delivering services to patients and reduces hospital-acquired complications. Thanks to a series of new contracts, Alcidion delivered a 33% increase in revenue to $16.9 million in FY 2019. Demand remains strong for its software, with the company revealing that it has had a strong start to the new financial year and has already achieved $11.7 million sold revenue for FY 2020 and a further $19.5 million out to FY 2025.
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider. It has been growing at a very strong rate over the last couple of years thanks to increasing demand for its award-winning Dante audio over IP networking solution. Dante is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. Due to the product having a significant market opportunity and the company potentially launching a number of new products in the near term, I believe Audinate could continue growing its top line at a strong rate for many years to come.
People Infrastructure Ltd (ASX: PPE)
People Infrastructure is a workforce management company that delivers solutions to the management of contractors. It was an impressive performer in FY 2019, posting a 26.8% increase in revenue to $278.15 million. And thanks to the widening of its margins, People Infrastructure delivered 36.8% increase in normalised EBITDA to $17.8 million. This was driven by a 22.7% increase in contract hire revenue to $255.9 million and supported by solid growth across almost all of the company's other segments. Pleasingly, continued organic growth is anticipated across the business in FY 2020.
