3 growing small cap ASX shares to watch

Damstra Holdings Ltd (ASX:DTC) and these small cap ASX shares could be worth watching very closely. Here’s what you need to know…

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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Damstra Holdings Ltd (ASX: DTC)

Damstra is a growing integrated workplace management solutions provider. The company’s cloud-based workplace management platform is used by businesses across the globe to track, manage, and protect their workers and assets.

During the first half of FY 2021, the company delivered a 29.6% increase in revenue to $13.3 million. Even if you annualise this, it is still the smallest fraction of a total addressable market estimated to be worth US$20 billion by 2022.

IntelliHR Ltd (ASX: IHR)

Another small cap ASX share to watch is IntelliHR. It is a cloud-based human resources (HR) and people management platform provider. Its platform has been designed to support HR professionals and leadership teams within an organisation, using technology that automates manual HR processes and captures critical people data.

Management notes that this gives users a real-time understanding of an organisation’s human resources and provides tools to create a performance-based culture aligned with the employer’s business strategy. It also contributes to strategic decision-making with data driven insights. 

IntelliHR recently released a trading update which revealed annual recurring revenue (ARR) had reached $3.55 million. This was double what it reported a year earlier.

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 and a 305% increase in net profit to $4.7 million.

Looking ahead, management sees plenty of opportunities to expand its network to drive growth. At present, SILK has a total of 56 clinics in operation. This is well short of its goal of increasing its network by 6 to 10 new clinics per annum up to a total of approximately 150 clinics.

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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 and recommends Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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