There are some top ASX growth shares that could be worth looking at.
Businesses that are growing profit across the world could certainly be worth looking at. Plenty of ASX shares are focused on the Australian and New Zealand markets.
However, there are businesses that have global growth goals. The potential growth is why these two companies are potential quality ideas to consider:
Premier Investments Limited (ASX: PMV)
Premier Investments is a retail business that owns a number of brands including Just Jeans, Jay Jays, Peter Alexander, Smiggle and Portmans. The ASX share also owns substantial amounts of both Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR).
The ASX share has stores across the world including the UK, Republic of Ireland and Asia, as well as Australia.
Despite store closures for periods of FY21, the business is expecting to report in FY21 that its retail operations generated earnings before interest and tax (EBIT) of between $340 million to $360 million. Year on year, that would be growth of between 82% to 92%.
There are four different reasons for the expected strong EBIT growth according to management. There was strong customer demand for the winter product ranges across all brands, strong online sales growth and highly profitable online performance, exceptional gross profit margin expansion in the second half of FY21 with an increase of 380 basis points and, finally, a strong cost control culture including continuing to reach agreements with landlords that appropriately rebase the group’s rent expense.
With Smiggle, the ASX share is expecting the brand to rebound with “maximum” EBIT growth as sales recover. The company plans to continue to significantly invest in Smiggle’s “highly profitable” global online presence.
According to Commsec, the Premier Investments share price is valued at 21x FY22’s estimated earnings.
Bailador Technology Investments Ltd (ASX: BTI)
Bailador is a business that aims to invest in expansion-technology businesses at attractive valuations.
Its current portfolio includes names like Siteminder, Instaclustr, Straker Translations Ltd (ASX: STG), Nosto and Standard Media Index. Global hotel booking business Siteminder may actually be nearing an initial public offering (IPO).
It’s also on the lookout for new technology businesses that have good growth potential that just needs funding to help it grow more. For example, in July 2021, it invested $5.5 million into the digital healthcare platform InstantScripts which allows Aussies to access doctor care and routine prescription medication.
The targets it’s looking at typically have revenue of between $5 million to $50 million, a proven business model, a globally addressable market and provides minority protections with board representation. The ASX share also integrates ESG principles into its investment thoughts.
FY22 is expected to be a significant year for new investments and profitable sales of some of its holdings.
It’s evaluating “numerous opportunities” to invest additional capital and realise existing investments.
At the end of August 2021, its pre-tax net tangible assets (NTA) per share was $1.51. That compares to the current share price of $1.46.