Are you looking for some small cap ASX shares to add to your watchlist? Then I would highly recommend you take a look at the ones listed below.
Here's why I think they have a lot of potential and are worth keeping a close eye on:
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Avita Medical Ltd (ASX: AVH)
The first small cap ASX share to watch is Avita Medical. It is the global regenerative medicine company behind the exciting Recell system. This system allows healthcare professionals to produce a suspension of Spray-On Skin Cells using a small sample of the patient's own skin. This suspension contains the cells necessary to regenerate the outer layer of natural, healthy skin and is prepared and applied at the point-of-care in as little as 30-minutes. While the company has a huge market opportunity already, it is seeking to extend Recell's use to treat vitiligo. If successful, combined, the company will have a significant runway for growth over the next decade.
Over The Wire Holdings Ltd (ASX: OTW)
Another small cap to look at is Over The Wire. It is a telecommunications, cloud, and IT solutions provider which has been growing at a solid rate in recent years. For example, in FY 2020, the company delivered revenue of $87.6 million, up 10% on the prior corresponding period. I expect more of the same from the company in FY 2021 and beyond. Especially given its recent acquisition of Digital Sense Hosting for $27 million. It is a high-quality cloud business that provides a customisable and scalable cloud offering to Enterprise and Government customers.
Readytech Holdings Ltd (ASX: RDY)
Finally, I think ReadyTech is another small cap to add to your watchlist. It is a leading provider of mission-critical people management software for educators, employers, and facilitators of career transitions. Management notes that its software represents a new way to manage the complex human journey through study, work, and career transitions. Demand has been growing for its software, leading to ReadyTech delivering a 19.1% increase in revenue to $39.3 million in FY 2020.
