Motley Fool Australia

These small cap ASX shares could be ones to watch in 2021

Investor sitting in front of multiple screens watching share prices
Image source: Getty Images

Would you like to add some small cap shares to your portfolio this month? If you would, then you may want to get better acquainted with the ones listed below.

Here’s why these small cap ASX shares could be the ones to watch:

Alcidion Group Ltd (ASX: ALC)

The first small cap to watch is Alcidion. It is an informatics solutions company that provides software that has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications.

Last month Alcidion released its half year results and reported a 36% increase in revenue to $11.1 million. In addition to this, it revealed that a further $23 million of sold revenue will be recognised over the next five years from FY 2022 to FY 2026.

Since then, the company has announced another potentially important contract with New Zealand’s Te Manawa Taki region District Health Boards for a pilot implementation of Better’s OPENeP Electronic Medication Management solution.

All in all, Alcidion looks well-placed to benefit from the digitisation of the healthcare sector over the next decade.

CleanSpace Holdings Limited (ASX: CSX)

Another small cap ASX share to watch is CleanSpace. It is a designer, manufacturer, and seller of workplace respiratory protection equipment (RPE) for healthcare and industrial end markets.

CleanSpace listed on the Australian share market late last year, raising $20 million to support its growth plans. This includes building on the adoption of CleanSpace products in the healthcare and industrial markets, product development, expanding awareness, and entering new international markets.

It recently released a very strong first half result. It revealed revenue of $39.7 million and EBITDA of $20.1 million. This was up from revenue of $7.3 million and an operating loss of $1.9 million a year earlier. It was also 25% and 72.6% higher, respectively, than management’s forecast. Positively, this is still well short of its addressable market of US$6.3 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd and CleanSpace Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Related Articles…

Latest posts by James Mickleboro (see all)