The little ASX tech share that's building 'a globally competitive business': WAM

Wilson Asset Management thinks this tiny ASX tech share has a big future.

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Key points

  • Wilson Asset Management (WAM) is backing this tiny ASX tech share as it builds a 'globally competitive business' 
  • In its June investment update, WAM said Serko was a significant positive contributor to its Microcap fund during the month 
  • The Serko share price is up by almost 70% in 2023 so far 

Fund manager Wilson Asset Management (WAM) says ASX tech share Serko Ltd (ASX: SKO) has a big future amid almost 70% share price growth in the year to date.

Wilson Asset Management recently lodged its June investment updates. The fund manager issues an update for each of its listed investment companies (LICs) every month.

The update for the WAM Microcap Ltd (ASX: WMI) fund noted that travel software company Serko was a significant positive contributor to its performance last month.

Overall, the WAM Microcap portfolio gained value over June and outperformed the S&P/ASX 200 Accumulation Index (ASX: XJOA).

This index is the S&P/ASX All Ordinaries Index (ASX: XAO) plus reinvested dividends.

The tiny ASX tech share building a global business

In its update, WAM described the small-cap tech share as a leading provider of online corporate travel booking and expense management software to customers across the globe.

Serko is a tiny ASX tech share with a market capitalisation of just $302 million.

Last month, Serko gave investors a trading update.

It reaffirmed guidance that its FY24 total income was expected to be between $63 million to $70 million.

Serko said if trends seen in the June quarter persist, it would go above the mid-point of its guidance range.

WAM commented:

We continue to believe the company's strong financial position will allow it to achieve operational efficiency and build a globally competitive business moving forward.

Share price snapshot

The ASX tech share closed on Friday at $3.72, down 2.36% for the day.

Serko shares have ascended 69.1% in 2023 so far.

But it hasn't been a smooth road for investors.

As the chart below shows, this ASX tech share has experienced huge share price fluctuations since it was listed in 2018.

WAM Microcap shares closed at $1.44, down 0.69% on Friday, and down 5% in the year to date.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Serko. The Motley Fool Australia has recommended Serko. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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