2 small cap ASX shares for 2022 with big potential

Here are 2 small cap ASX shares with significant growth potential.

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Small cap ASX shares have the potential to deliver good growth over the long-term.

They are starting from a much smaller position, giving them more of a runway for growth over time.

Just because a business is small doesn't automatically make it a good idea, but these two businesses are compelling options:

Doctor Care Anywhere Group PLC (ASX: DOC)

Doctor Care Anywhere is a UK-based telehealth company that is "committed to the best possible patient experience and clinical care through digitally enabled, joined up, evidence based pathways on its proprietary platform."

It recently announced the launch of a new operating model. It's an evolution from the provision of a single option of 20-minute virtual GP consultations to the provision of multiple options based on a patient's clinical requirement.

There were three options that the small cap ASX share noted.

The first was a virtual GP consultation.

The second was a consultation with an advanced nurse practitioner.

Third, a "QuickConsult", where a patient completes a questionnaire to be reviewed by a prescribing clinician, resulting in written advice or a prescription with the need for a real time video or phone consultation.

This is expected to improve access for a larger number of patients and significantly improve the margins and profitability of the company.

Doctor Care Anywhere continues to grow. In the latest quarter, for the three months to September 2021, it saw quarter on quarter revenue growth of 21.6% to £5.8 million. Consultations grew by 30.6% quarter on quarter to a total of 116,800 consultations.

Healthia Ltd (ASX: HLA)

Healthia is another small cap ASX share in the healthcare space. It offers a number of different 'allied' health services including podiatry, physiotherapy, hand and upper arm therapy, pilates, orthopaedic, optometry and so on.

The company is benefiting from both acquisitions and organic growth.

Indeed, just today it announced acquisitions. It's buying LensPro Optometrists which has eight stores in south east Queensland. Healthia is also buying a physiotherapy business in Queensland as well as one in Victoria.

Those acquisitions are expected to add to annualised underlying revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by $9.5 million and $1.9 million respectively.

The total acquisitions for the six months to 31 December 2021 are projected to contribute annualised underlying revenue and EBITDA by $82.9 million and $15.9 million respectively. Total capital allocated to these acquisitions is $104.2 million.

Healthia expects to deploy a minimum of $20 million of capital per annum on new acquisitions.

COVID restrictions have impacted Healthia's ability to trade in FY22 in some locations, but FY21 saw organic revenue growth of 9.1%. FY21 also saw underlying EBITDA growth of 62.3% year on year and underlying earnings per share (EPS) growth of 51.6%.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Doctor Care Anywhere Group PLC and HEALTHIA FPO. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC and HEALTHIA FPO. 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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