With 2024 quickly coming to an end, it's time to start looking ahead at what we want our portfolio to look like next year and beyond. Investors with a long investment time horizon (and a healthy risk tolerance!) might be looking for the shares with the biggest growth potential.
If that sounds like you, then you're in luck. In this article, I'm taking a closer look at three of my current favourite ASX growth stocks. These are all companies that had a bumper FY24 and already look set to back it up again in FY25.
Santa, if you're reading this, here are three shares I'd love to find in my stocking on Christmas morning.
SKS Technologies Group (ASX: SKS)
The first company on my list is SKS Technologies. It's a Melbourne-based audiovisual and information technology company.
SKS helps its clients design and install audiovisual solutions, communications networks, and other electrical technologies, like data centres. Notable recent projects include audiovisual and information technology systems for the State Library of Victoria and a unified communications network for the Eminence, a boutique commercial building in Brisbane.
This was a banner year for SKS. For the 12 months ended 30 June 2024, SKS raked in revenues of $136.5 million and generated net profit after tax (NPAT) of $6.62 million, a whopping ten-fold increase versus the $0.63 million profit it reported in FY23. Its shares are also among the biggest gainers on the ASX so far this year, up an eye-watering 553%!
But next year could be even better. Thanks to some recent data centre contract wins, the company is forecasting revenues of $260 million and net profit before tax of $17 million for FY25.
Nuix Ltd (ASX: NXL)
Nuix is an Australian data analytics company headquartered in Sydney. But it isn't your typical data analysis company – Nuix specialises in investigative analytics. Its software combs through massive data sets looking for signs of fraud and other crimes – even child exploitation and online grooming. The company's motto is A Force for Good.
And being good has paid off handsomely for Nuix this year. In its FY24 results (covering the year ended 30 June), Nuix reported revenue growth of almost 21% year-on-year to $220.6 million. The company also controlled its costs well throughout FY24, resulting in NPAT of $5 million – a significant turnaround versus the net loss of $5.6 million it posted in the prior year.
Speaking at the time of the result, Nuix CEO Jonathan Rubinsztein sounded confident in the company's future growth potential. "In the coming financial year we will continue to invest in our technology, further evolving our offering in line with our strategic vision. The technology and financial base established in FY24 provides a solid foundation for growth in FY25 and beyond."
As of the time of writing, Nuix shares are up a whopping 245% year-to-date at $6.66.
Austin Engineering Ltd (ASX: ANG)
The last share on my Christmas list is Austin Engineering. It designs and manufactures digging, hauling, and other specialised equipment for the mining industry.
Although based in Western Australia, Austin is very much a global company, with a significant chunk of its earnings coming from across the Asia Pacific, North America, and South America. In fact, in FY24, North America was its fastest-growing revenue segment.
The company's FY24 results – for the year ended 30 June 2024 – were impressive. Revenues were up 21% year-on-year to $313.2 million, and statutory NPAT skyrocketed 318% to $29.7 million.
Speaking at the time, company CEO David Singleton attributed the company's strong performance to its revamped operational strategy.
"Our improved financial performance has been driven by a series of initiatives designed to enhance operating efficiencies and lower costs across our business units, which has led to a continued growth in margins," Singleton said.
The outlook for FY25 is also bullish, with earnings before interest and tax expected to grow by 30% to around $50 million. Austin has already made a strong start to FY25: in October, it announced that more than 100 new orders for truck trays (valued at around $35 million) were placed with its business in Chile.
