2 ASX All Ords shares I think are top buys following their results

International growth makes these attractive opportunities to me

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The ASX All Ordinaries (ASX: XAO) shares area of the market seems like a great place to go hunting for opportunities because of the growth prospects.

I think that companies with lower market capitalisation than their blue-chip counterparts have more chance of doubling in value over a shorter time period.

The two businesses I'm going to cover in this article both recently reported and are showing signs of a very promising future.

Johns Lyng Group Ltd (ASX: JLG)

This is a building services business that provides building and restoration services across Australia and the US, focused on insured events including catastrophes like floods, storms and fires.

The FY23 result saw strong growth, with 43% revenue growth to $1.28 billion, 43% growth of earnings before interest, tax, depreciation and amortisation (EBITDA) to $119.4 million and normalised net profit after tax (NPAT) growth of 41.5% to $62.8 million. The profit growth enabled a 58% increase in the annual dividend to 9 cents per share.

Management is confident that earnings can continue to grow. It said it has seen strong growth in its catastrophe activity, with the continuing trend of "longer-tail recoveries, coupled with counterparties (especially governments) looking for relationships with service providers that are multi-project and multi-year in nature."

The company said its business model gives it "the best opportunity" to win a large proportion of this significant work.

I also like the company's expansion into 'essential home services', which means there are cross-selling opportunities with some of its other businesses, including its strata operations.

The business said it has had a strong start to FY24. It described its 'business as usual' job pipeline as "solid". Its business-as-usual revenue is expected to grow by 18.5% to $1 billion and EBITDA is expected to rise 20.1% to $113 million.

The ASX All Ords share's management described itself as defensive in nature and continuing to grow, while expecting strong revenue relating to catastrophe operations.

Frontier Digital Ventures Ltd (ASX: FDV)

This business describes itself as an owner and operator of online classifieds marketplaces in fast-growing emerging regions. Its business is split into three segments – Latin America, Middle East and North Africa (MENA) marketplaces group (MMG), and Asia.

In the FY23 first half, statutory revenue increased by 7% to $31.2 million. Operating EBITDA increased $1.6 million to $1.5 million, while statutory EBITDA improved $3.4 million to $0.9 million. It finished with a cash balance of $14.9 million.

The business was able to reduce its operating expenses by A$1.4 million to $30.3 million. Frontier Digital Ventures is looking to leverage its market position to attract free organic traffic.

For me, one of the most important developments was that revenue has stabilised in the Pakistan business of Zameen – revenue increased in both June 2023 and July 2023. Zameen is one of the ASX All Ords share's largest assets.

The business is as profitable as it has ever been, yet the Frontier Digital Ventures share price is down 50% in six months. I believe there's good potential for ongoing profit growth if/when economic conditions improve in emerging markets leading to revenue growth, which could then combine with the scalable digital business model (leading to stronger profit margins).

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. has positions in and has recommended Frontier Digital Ventures and Johns Lyng Group. The Motley Fool Australia has recommended Frontier Digital Ventures and Johns Lyng Group. 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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