If you're a fan of small cap shares, then you might want to take a look at the ones listed below.
These small caps are growing quickly and could have bright futures ahead of them. Here's what you need to know about them:
Damstra Holdings Ltd (ASX: DTC)
The first ASX small cap share to watch is Damstra. It is a growing integrated workplace management solutions provider.
Damstra's solutions help users track, manage, and protect their employees and contractors. This is becoming increasingly important for businesses and can potentially save significant costs relating to workplace injuries.
While its growth has slowed a touch in FY 2021 because of the pandemic, it looks well-placed to accelerate its growth once the crisis passes. Particularly given the overall digital transformation theme happening across many industries that Damstra operates in.
For the six months ended 31 December, Damstra reported a 29.6% increase in revenue to $13.3 million and a 4% decline in EBITDA to $2.5 million. Though, it is worth noting that its earnings were impacted by the acquisition of the loss-making Vault Intelligence business during the half.
Positively, management revealed that its unaudited revenue was up 61% in January. This bodes well for the second half and its full year results.
MyDeal.com.au Limited (ASX: MYD)
Another small cap ASX share to look at is MyDeal.com.au. It is an online retail marketplace with a focus on homewares, furniture, and technology.
Thanks to the accelerating shift to online shopping, MyDeal has been growing very strongly in FY 2021. For example, the company recently released its half year results and revealed a 217% increase in gross sales to $126.7 million. Management advised that this was driven by a jump in active customers to 813,764 and increased repeat use.
The good news is that the company appears well-placed for growth in the coming years thanks to increased online spending and its investments in growth opportunities. That latter includes growing its private label business and investing in advertising to support its customer base and brand.
