At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.
Three that investors might want to keep a close eye on are listed below. Here’s what you need to know about them:
IntelliHR Ltd (ASX: IHR)
The first small cap ASX share to watch is IntelliHR. It is a cloud-based human resources and people management platform provider. Last month IntelliHR released a trading update which revealed that its expansion into the United Kingdom was going exceptionally well. Thanks partly to this, at the end of April the company’s annual recurring revenue (ARR) had reached $3.55 million. This was double what it reported a year earlier. Positively, the company looks well-placed to continue its solid growth in the coming years thanks to the shift to the cloud and the quality of its software.
PlaySide Studios Limited (ASX: PLY)
Another small cap ASX share to watch is PlaySide Studios. It is a growing independent video game developer with an expanding portfolio of games. These include games based on its own original intellectual property and those through licensing deals with Hollywood studios such as Disney. During the first half of FY 2021, PlaySide reported record first half sales revenue of $5 million. This was up 63% on the prior corresponding period. Pleasingly, this is just a very small slice of its global market opportunity. Management estimates that it has a US$159 billion global addressable market, which gives it a very long runway for growth.
SILK Laser Australia Limited (ASX: SLA)
A final small cap ASX share to watch is SILK Laser. It is a laser, skin care, and cosmetic injections company that has been performing very strongly in FY 2021. In February, SILK Laser released its half year results and revealed a 62% increase in network sales to $44.9 million. Things were even better on the bottom line, with net profit growing 305% to $4.7 million. Positively, this strong form is expected to continue in the second half. Looking further ahead, management sees plenty of opportunities to expand its network to drive growth. At present, SILK has a total of 56 clinics in operation, but management intends to grow its network by 6 to 10 new clinics per annum up to a total of approximately 150 clinics.