The ASX healthcare share has also reported its FY23 results for the 12 months to 30 June 2023.

Let's take a look at the results first.

FY23 results snapshot

• Revenue increased 26.1% to $252.6 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 56% to $38.3 million
• Underlying net profit (NPATA) grew 88.5% to $23 million
• Statutory net profit after tax (NPAT) increased 291% to $6.3 million

Healthia advised it had achieved attractive levels of organic revenue growth, but this was impacted by higher levels of absenteeism in the fourth quarter of FY23 (as measured by sick leave as a percentage of wages). This was due to spikes in COVID and other illnesses. In the FY23 third quarter, its organic revenue growth was 12.6%, compared to 6.8% in the fourth quarter.

Healthia has also experienced a sizeable increase in other areas such as finance costs, wages and raw materials and consumables.

Takeover offer for Healthia shares

Healthia also announced today it has entered into a scheme implementation deed with Harold BidCo Pty Ltd — an entity owned by private equity group Pacific Equity Partners. The bid would see Harold BidCo acquire the entirety of the ASX healthcare share.

Under the terms of the offer, Healthia shareholders will have the option to receive either $1.80 cash per share, shares of an unlisted business or a combination of both. It was noted that the unlisted business would give shareholders the chance to participate in the future of the company.

The offer of $1.80 per share represents a premium of 85% compared to the last closing Healthia share price.

Healthia's board has unanimously recommended the takeover offer to shareholders, subject to there not being a stronger takeover offer, and an independent expert concluded the takeover was in the best interest of Healthia shareholders.

What did management say?

Healthia chair Dr Glen Richards said:

The Healthia board has unanimously concluded that the scheme represents a very attractive outcome for our shareholders, clinic partners, patients, clinicians and team members.

In the Healthia board's view, the all-cash price at a significant premium to Healthia's recent share price reflects the inherent value of Healthia's business operations, national platform and growth strategy in Australia and New Zealand.

What's next?

There are a number of steps for this takeover to be completed, including approval by the owners of Healthia shares, approval by the Foreign Investment Review Board (FIRB) and so on. The offer is not subject to financing or a funding condition.

The company expects to hold a shareholder meeting in November 2023 for shareholders to vote. If approved, the takeover is expected to be implemented shortly afterwards.  

Healthia share price snapshot

Thanks to today's sharp rise, Healthia shares are up by 37% in 2023 to date. That compares to a 5% rise for the S&P/ASX 200 Index (ASX: XJO).

The post Healthia share price skyrockets 80% amid takeover bid and soaring profits appeared first on The Motley Fool Australia.

I'm a big fan of ASX tech shares, but they're not the only place to look for opportunities that could achieve considerable growth over the long term.

Vaneck Morningstar Wide Moat ETF (ASX: MOAT)

This ASX-listed exchange-traded fund (ETF) is all about investing in competitively advantaged businesses. Advantages can come in many forms such as brand power, patents, intellectual property, or lower costs than competitors.

Morningstar analysts expect these competitive advantages to last for at least a decade and, more likely than not, for two decades.

With this shortlist of competitively advantaged companies, the analysts only decide to invest if they think the companies are valued at good prices compared to what the analysts determine is a good price.

I think this investment style is well-suited to produce strong long-term returns as it tends to invest in strong, long-term businesses at good prices.

Of course, past performance is not a guarantee of future returns but over the past five years, the MOAT ETF has delivered average returns per annum of 16.7%. If it achieved the same return over the next five years, it would grow a starting investment of $1,000 to more than $2,100 by the end of that period.

Healthia Ltd (ASX: HLA)

Healthia is a promising ASX growth share in my opinion. The business is an allied health company with a network of optometry, podiatry, and physiotherapy clinics around Australia. The company also has its iOrthotics division, which it touts as Australia's "leading manufacturer of custom-made and 3D printed foot orthotic devices for podiatrists".

I think a combination of long-term organic growth of clinic revenue, as well as ongoing acquisitions, will help the business deliver impressive returns over the long term as scale leads to improving profit margins.

The FY23 half-year result was a great example of this. Underlying revenue rose 34.3% year over year, with organic revenue of 5.4%. At the same time, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 48.2% to $18.1 million (faster than revenue growth).

It also noted that during the period, it invested $8.3 million to acquire 10 physiotherapy clinics and two hand therapy clinics. At the same time, it invested $1.9 million into expanding service offerings within eight existing clinics.

The company has noted it had a market share of less than 3% of the addressable industry revenue. It also said it was reviewing more than 100 allied health businesses as part of an "active acquisition pipeline". Those future acquisitions are expected to be funded from cash and existing bank facilities.

If the ASX share can grow its market share to 6% then I think its profit and the Healthia share price can double as well.

The post Here are 2 ASX finds I'd buy to double my money in 5 years appeared first on The Motley Fool Australia.

I think there are some relatively little businesses on course to grow into much bigger companies. And it's typically easier for a $100 million company to double in size to $200 million than it is for a $10 billion business to grow to $20 billion. Large companies can reach market saturation points and run out of suitable regions or customers to expand into.

One of the most exciting things on the ASX, in my opinion, is identifying businesses that could scale significantly in the next few years. I'm going to tell you about two of them.

Serko Ltd (ASX: SKO)

Serko describes itself as a leader in online travel booking and expense management for the business travel sector. The small-cap ASX share says its travel management app Zeno is "next generational", using "intelligent technology, predictive workflows and a global travel marketplace to transform business travel across the entire journey".

As travel demand rebounds, the ASX travel share is seeing a resurgence in performance. In the FY23 result for the 12 months to 31 March 2023, total income grew 154% to $48 million, while average revenue per booking increased 65% to $9.56. Serko's online bookings grew by 93% to 4.1 million, while its completed room nights on Booking.com for business were up 381% to 1.5 million.

The company was still going through travel recovery in FY23, so it made a net loss after tax of $30.5 million, but this was an improvement of 15% year over year.

In Serko's guidance for FY24, the company expects total income to be between $63 million to $70 million, representing growth of between 31% to 46%.

Aside from the ongoing travel demand, which is promising for a scalable software ASX travel share, I think the business has a positive future with its partnership with Booking.com. A lot of the growth came in the second half of FY23, so the FY24 first half's growth could also be very strong.

Travel management company CWT has committed to supporting an expanded Booking.com for business offering that will include "discounted business travel rates, access to membership rewards from a variety of loyalty programs and complimentary 24/7 travel agent support."

It aims to hit $100 million in total income in FY25, which could come with much-improved profit margins. The market appears to like what Serko has said recently, as we can see on the small-cap ASX share chart below.

Healthia Ltd (ASX: HLA)

Healthia comprises three divisions focused on different areas: bodies and minds, feet and ankles, and eyes and ears. The ASX healthcare share also has a growing network of clinics and stores across the country operating in these areas.

Each of these industries is fragmented, so there's plenty of room for the business to carry out acquisitions for a number of years, boosting its market share and scale.

I think the FY23 half-year result showed the benefit of the company's growth strategy. Healthia reported that for the six months to 31 December 2023, underlying revenue grew 34.3% to $124.9 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 48.2% to $18.1 million, and underlying net profit after tax (NPATA) went up 48.3% to $9.2 million. This demonstrates the company's scalability.

Pleasingly, organic revenue increased by 5.4%, showing that it doesn't need to make acquisitions to grow at a decent rate. It has an organic growth rate target of between 3% to 6%, which would deliver solid compounding potential when combined with rising profit margins and a growing dividend.

In FY23, it expects to achieve underlying EBITDA of more than $40 million. I think it could grow profit significantly over the next five to ten years, helping push the Healthia share price higher.

The post Strong potential: Why I'd buy these 2 ASX small-cap shares appeared first on The Motley Fool Australia.

I think the industry has a compelling future with Australia's ageing demographic and the ongoing growth of the overall population.

With that underlying support for demand, I think the businesses that I'm going to write about have very promising futures through the 2020s.

Healthia Ltd (ASX: HLA)

Healthia is looking to become a large player in the allied healthcare space.

It has a few different divisions, including 'bodies and minds', 'feet and ankles' and 'eyes and ears'. That includes services such as physiotherapy, hand therapy, occupational therapy and speech pathology; podiatry clinics and retail footwear stores; optometry and audiology stores, as well as eye frame distributor AED.

The company is looking to grow its organic revenue by between 3% to 6% per annum, which can drive its earnings higher. In the FY23 first half, organic revenue increased by 5.4%.

Healthia is also growing through acquisitions, which is increasing its market share and scale. In HY23, for example, it bought 10 physiotherapy clinics and two hand therapy clinics.

HY23 saw 'underlying' revenue grow by 34.3% to $125 million, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 48.2% to $18 million, and underlying net profit after tax (NPAT) went up 48.3%.

Ongoing revenue growth, combined with increasing profit margins, is very positive for the long term, in my opinion. The business has a market share of less than 3%, so there are plenty of future acquisition opportunities.

Commsec forecasts put the current Healthia share price at 9x FY23's estimated earnings.

NIB Holdings Limited (ASX: NHF)

NIB is an increasingly diversified private health insurance business.

It's best known for providing health insurance to Australian residents and visitors. But it's also involved in other areas, including health insurance in New Zealand and travel insurance. Plus, there's a division called NIB Thrive which is involved with NDIS plan management and support coordination.

The ASX healthcare share continues to see policyholder growth in Australia, which is helping drive revenue and earnings. People reportedly value health insurance more following the pandemic. NIB has outgrown the wider industry every year over the last 20 years, and it's expecting to keep outperforming the industry, according to the company.

The company is looking to expand its "value proposition and differentiate NIB in existing private health insurance markets by making membership as much about supporting good health as it is the treatment of sickness and injury".

The company plans to become a larger player with both its travel insurance and pursue NDIS opportunities. It has around 22,000 NDIS participants today, but it says it's on track to manage plans for around 50,000 participants by FY25.

The ASX healthcare share is expecting stronger travel earnings thanks to increasing levels of availability of travel options.

Plus, international student volumes are strongly rebounding, while international workers are returning in numbers as well, according to NIB. This can help its international inbound health insurance earnings.

Commsec numbers put the current NIB share price at 20x FY23's estimated earnings.

The post 2 ASX healthcare shares I'm backing for strong growth this decade appeared first on The Motley Fool Australia.

However, some pint-sized ASX companies could turn out to be the big-cap stocks of the future. And wouldn't it be great to invest in a few during the relatively early stages of their growth stories?

But with so many tiny ASX fish in the sea, how can investors sort the future big catches from the minnows destined to forever remain small fry?

For their thoughts, we decided to open a can of worms and ask our Foolish writers which ASX small-cap shares they reckon are worth reeling in right now. Here is what they said:

6 best ASX small-cap shares for 2023 (smallest to largest)

City Chic Collective Ltd (ASX: CCX), $127.56 million

Healthia Ltd (ASX: HLA), $191.79 million

Adairs Ltd (ASX: ADH), $414.87 million

Arafura Rare Earths Ltd (ASX: ARU), $1.28 billion

Platinum Asset Management Ltd (ASX: PTM), $1.35 billion

GUD Holdings Limited (ASX: GUD), $1.40 billion

(Market capitalisations as at market close on 20 February 2023)

Why our Foolish writers love these ASX small-cap stocks

City Chic Collective Ltd

What it does: City Chic is an Australian-born, plus-sized fashion retailer. It boasts 200 locations around the globe as well as multiple online channels.

By Brooke Cooper: The last 12 months have been rough on the City Chic share price. It's dumped almost 90% since this time last year amid inventory concerns and balance sheet pressure.

But I believe most of the bad news could now be behind the company. City Chic recently revealed its inventory levels are expected to come in below guidance for the first half, while its recently-amended debt facility should support the company's financial position.

Goldman Sachs is neutral on the stock due to concerns around continuously-compressed margins and a promotion-focused customer base.

However, I'm not averse to risk so think the current City Chic share price could represent a buying opportunity right now.

Motley Fool contributor Brooke Cooper does not own shares in City Chic Collective Ltd.

Healthia Ltd

What it does: With over 300 clinics across Australia and New Zealand, Healthia describes itself as a leading, diversified allied healthcare provider.

The company operates networks of optometry, podiatry, and physiotherapy clinics and also owns iOrthotics, a leading manufacturer of custom-made and 3D-printed foot orthotic devices for podiatrists.

By Tristan Harrison: The Healthia share price has fallen by around 40% since the start of 2022, making it great value, in my opinion.

I think the business is exposed to a number of helpful tailwinds, including an ageing population and a growing potential market (helped by the resumption of immigration).

This small-cap ASX share is also relying on an acquisition strategy to boost its scale. It's also working on improving the performance and efficiency of its existing clinic network. Healthia is planning to spend at least $20 million on acquisitions in FY23.

FY23 half-year revenue is expected to grow by between 31.7% to 37.1%, with like-for-like revenue growth of 5.4%. January 2023 showed "positive momentum" as well.

Motley Fool contributor Tristan Harrison does not own shares in Healthia Ltd.

Adairs Ltd

What it does: Adairs is an ASX retailer that sells homewares like linens, furniture, and decor items. It operates 170 stores across Australia and New Zealand as well as a growing online channel.

By Sebastian Bowen: This is one ASX small-cap share I think could have a big future.

The Adairs share price has had a bit of a rough trot over the past year or two, having fallen by around 50% from its pandemic highs. But this could well present a buying opportunity.

The company is still growing healthily, posting record revenues for the first half of FY2023, which were up 34.1% over 1H22's numbers. Its online channels have also been booming, with roughly 26.5% of all sales over the half done over the internet.

Perhaps best of all, Adairs currently has a fully-franked trailing dividend yield of around 7.5% on the table today.

Considering all of this, Adairs could well be a small-cap ASX retailer to consider right now.

Motley Fool contributor Sebastian Bowen owns shares in Adairs Ltd.

Arafura Rare Earths Ltd

What it does: Arafura Rare Earths is the rare earths developer behind the globally significant Nolans Project in the Northern Territory.

By James Mickleboro: I think Arafura Rare Earths could be an ASX small-cap share to buy right now. This is because of the potential for the Nolans Project to supply a significant proportion of the world's neodymium and praseodymium (NdPr) demand in the future.

These are critical minerals in the production of high-performance neodymium magnets, which are used in everything from mobile phones and electric vehicles to wind turbines and military weapons.

And with the company expecting demand to more than double from 2020 to 2030, and supply to remain constrained, I believe Arafura looks well-positioned to benefit from strong prices once it commences production.

Motley Fool contributor James Mickleboro does not own shares in Arafura Rare Earths Ltd.

Platinum Asset Management Ltd

What it does: Platinum Asset Management is an Australian-based niche investment manager focused on international shares.

By Bernd Struben: After a tough 18-month stretch, the Platinum Asset Management share price has seen a big turnaround in 2023, up by almost 30% year to date. I like buying into strength and believe the company can deliver more gains in the year ahead.

Adam Lund, head of trading at Spheria Asset Management, recently tipped Platinum to outperform. He told Motley Fool, "When you buy Platinum shares, you are investing in a very experienced investment team that manages $18 billion across strategies that have outperformed their direct competitors over most periods."

Atop potential share price gains, Platinum pays a 7.8% trailing dividend yield, fully franked.

Motley Fool contributor Bernd Struben does not own shares in Platinum Asset Management Ltd.

GUD Holdings Limited

What it does: GUD Holdings is an Australian-based company that manufactures and distributes a diverse range of products in the automotive aftermarket and water industries. With a history spanning 65 years, GUD has raised a slate of trusted brands including Ryco Filters, DBA brakes, CSM, Cruisemaster, and Davey.

By Mitchell Lawler: GUD Holdings is not a flashy company touting futuristic software. However, it does meet a valuable need by providing a host of aftermarket car parts.

A growing berth of brands continues to fortify GUD's pricing power, reputability, and top-line growth. In the company's latest half-year results, revenue increased a significant 56% to $517 million.

What I find particularly attractive about this company is its exposure to non-discretionary spending. Around 80% of GUD's automotive revenue is derived from wear-and-tear/replacement parts. I believe this bodes well for the company, in conjunction with a large number of registered cars in Australia and the rising average vehicle age.

I personally think GUD's assets and growth potential are currently undervalued. At present, the company trades at around 11 times estimated FY2025 earnings.

Motley Fool contributor Mitchell Lawler does not own shares in GUD Holdings Limited.

The post Top ASX small-cap shares to buy in 2023 appeared first on The Motley Fool Australia.

WAM operates several listed investment companies (LICs). Some, such as WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM), focus on larger companies.

There's also one called WAM Microcap Limited (ASX: WMI) which focuses on small-cap ASX shares with a market capitalisation of under $300 million at the time of acquisition.

WAM says WAM Microcap targets "the most exciting undervalued growth opportunities in the Australian microcap market".

These are the two small-cap ASX shares the fund manager outlines in its recent monthly update.

Austin Engineering Ltd (ASX: ANG)

WAM described Austin Engineering as a designer and manufacturer of customised dump truck bodies, buckets, water tanks, tyre handlers and other ancillary products that are used in the mining industry.

The fund manager pointed out that in January, Austin Engineering reported a surge in global truck-tray orders from December 2022 to January 2023, increasing its order book and improving the revenue outlook for the second half of FY23.

WAM noted that the ASX share is now expecting its revenue for the second half of FY23 to be around $250 million as the pipeline is expected to "remain strong for at least the next 18 months."

The investment team like this because of the "robust outlook for growth and a strong balance sheet". WAM thinks that the Austin Engineering share price is still undervalued.

Healthia Ltd (ASX: HLA)

Healthia has more than 300 clinics, according to WAM, describing it as "one of the leading diversified allied healthcare providers across Australia and New Zealand."

The fund manager noted that at the end of January, Healthia provided guidance for the FY23 half-year result, revealing total sales are expected to be between $122.5 million to $127.5 million, which would be growth of 5.4% on the prior corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $17.7 million to $18.3 million, which would be a growth of 4% and higher than analyst expectations.

WAM was positive about the fact that the company confirmed its guidance. The fund manager also suggested that the "strong balance sheet" will allow the ASX share to make acquisitions that can add to earnings in the future.

The post 2 exciting ASX shares that are on course for 'robust growth': expert appeared first on The Motley Fool Australia.

Now, don't get me wrong. Investing $2,400 in the first 12 months isn't suddenly going to unlock $20,000 of annual dividends. It will take some time, but I believe that it's possible.

Compounding is a very powerful financial force, which can enable smaller amounts to grow into much larger amounts. Albert Einstein once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't…pays it.

For example, using a compound interest calculator, investing $200 a month for 40 years, returning an average of 10% per annum, turns into $1.06 million. That only requires $96,000 of money from the investor – the rest (in this example) comes from compounding returns.

But, I don't think someone needs $1 million to make $20,000 of annual income. A portfolio with a yield of 4% would only need to be half the size ($500,000) to make $20,000, while a 6% yield would only need to be $333,334 in size to make $20,000.

How I'd invest in ASX shares

There are a few principles that I'd take into this investing plan.

First, I'd take a brave attitude when it comes to market crashes. Volatility regularly happens. If I'm invested in good businesses, a temporary dip (even a big one) won't bother me. In fact, I would see lower prices as an opportunity to buy, rather than panic and sell. It's during those times that the best prices can be found.

Second, I would want to consistently invest, through the ups and downs into the best opportunities I could see with a dollar cost averaging (DCA) strategy. While share prices are always changing, I think there'll always be at least one idea that could be a good opportunity.

Third, I'd only invest in businesses that seem as though they have a good potential to grow earnings and dividends. I think it's the businesses that are growing their underlying value that have the best chance of achieving share price growth and good dividends over time.

For example, several years ago I invested in Altium Limited (ASX: ALU) shares when the dividend yield was more than 3%. Since then, the dividend (and profit) has grown enormously and my yield-on-coast is much higher. In 2014 it paid an annual dividend of 12 cents per share and in FY22 it paid an annual dividend of 47 cents per share.

Some of the names I believe can provide a good combination of dividends and growth in the coming years include Adairs Ltd (ASX: ADH), Premier Investments Limited (ASX: PMV), Beacon Lighting Group Ltd (ASX: BLX), Lovisa Holdings Ltd (ASX: LOV), Healthia Ltd (ASX: HLA), Bailador Technology Investments Ltd (ASX: BTI) and Propel Funeral Partners Ltd (ASX: PFP).

The post How I'd invest $200 a month in ASX shares to make a $20,000 passive income for life appeared first on The Motley Fool Australia.

It's far easier for a business to double in size from $500 million to $1 billion than it is for a company to grow from $50 billion to $100 billion.

I think that smaller ASX shares have a longer growth runway and, therefore, can produce stronger returns over time.

But I only want to consider ideas that are already producing good revenue. I'm not thinking about high-risk biotech names or other similar sorts of categories. So, with that in mind, these are four of my favourite ideas for long-term growth which could help build a portfolio worth $1 million.

Airtasker Ltd (ASX: ART)

Airtasker is a small-cap ASX tech share that provides a platform for people to advertise for free the service they are seeking. Taskers can then offer to do the work — and outline their fees. The type of tasks involved can be almost anything – delivery services, photography, furniture assembly, removals, various handyperson jobs, and so on.

The business is already producing positive earnings before interest, tax, depreciation and amortisation (EBITDA) in Australia. It's also rapidly growing in the US and the UK too, which are two huge markets.

Airtasker has a very high gross profit margin, which means it's able to invest a lot of its new revenue back into growth expenditures such as marketing.

Certainly, the company is already showing a desire for geographical expansion. As such, I believe it has a long growth runway with other countries it can expand into, such as Canada and New Zealand.

Volpara Health Technologies Ltd (ASX: VHT)

I think Volpara is one of the most exciting small-cap ASX healthcare shares. It has AI-powered image analysis that enables advanced breast screening, helps healthcare professionals better understand the cancer risk of patients, and enables healthcare providers to streamline work and improve performance.

The business recently announced that in the three months to December 2022, it achieved positive operating cash flow after a 42% increase in cash receipts in constant currency terms.

It continues to grow its annual recurring revenue (ARR) while decreasing its cost base, boosting profitability.

If it can keep selling more of its services to its existing (and growing) customer base, then the average revenue per user (ARPU) will keep improving and this should further boost profit margins.

I think the small-cap ASX share has a very promising future, particularly if it can get a good foothold in Europe.

Healthia Ltd (ASX: HLA)

Healthia is an allied healthcare business. It's involved in a number of areas including networks of optometry, podiatry, and physiotherapy clinics.

I think this is quite a defensive sector, so its earnings could perform adequately in the period ahead.

The Healthia share price has dropped 40% over the past year, making it much better value. With the Australian population rising, and becoming older, I think there are useful tailwinds for the business.

If it can keep acquiring additional clinics and improve the performance of its existing network, I believe the business is on course for a good future.

I think it looks very reasonably priced, trading at 12 times FY23's estimated earnings, according to Commsec.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is another small cap ASX share that I believe has plenty of potential.

It's an online retailer of homewares and furniture which has more than 200,000 products on sale.

A lot of the products sold are from third-party suppliers, which are shipped straight to customers. This cuts shipping times, reduces the need for Temple & Webster to hold inventory, and makes that part of the business quite capital-light.

But the company also has a growing selection of private-label products.

If Australia follows the e-commerce trend of the UK then, in the coming years, the company's online share of the market could rise from mid-teens in Australia to a percentage in the high 20s, according to Temple & Webster.

The business is heavily investing in technology, such as an AI interior design service, and an augmented reality (AR) service which enables people to visualise products in their home space.

With its high level of reinvestment, I think the company can benefit from growing scale and achieve attractive margins in time.

The expansion into the home improvement categories (like painting, plumbing, and flooring) also gives the small-cap ASX share a very large addressable market to aim for.

The post I'd aim for $1 million buying just a few ASX shares appeared first on The Motley Fool Australia.

In my opinion, there are some names that could see a good turnaround this year after a tough time in 2022.

When something drops, it only needs to recover some of its lost ground to make a big return. For example, if something drops 50% from $100 to $50. Just rising to $75 would be a capital growth of 50%.

With the growth outlook for the below three ASX All Ords shares looking promising, I'm watching these three closely.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading online retailer of beauty products. The business saw a big bump in demand during the COVID-19 period. But, I think there is a longer-term trend of shopping going digital, with younger generations more confident about e-commerce.

Over the past year, the Adore Beauty share price has fallen more than 70% as the company has found it difficult to outperform its recent success. However, I believe that the ASX All Ords share may have been oversold considering its long-term growth outlook.

I like some of the things I'm seeing from the business – growth of returning customers, slow-but-steady gross profit margin improvement, and the launch of owned brands.

The first month of Viviology, Adore Beauty's first skincare brand, saw sales "well exceed" internal expectations.

Over the next 12 months and five years, I think the Adore Beauty share price can outperform the market, particularly if the annual revenue per active customer keeps rising and profit margins improve thanks to scale benefits.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical is a growing fund manager that focuses on providing investment options – both managed funds and superannuation – for investors seeking much more focus on the ethics and sustainability of the businesses being invested in on their behalf.

This is proving to be popular because the company is seeing healthy inflows every quarter. In the two months to November 2022, the company saw $120 million of net inflows.

The All Ords ASX share also recently saw Christian Super funds join Australian Ethical, which added another $1.93 billion and 28,000 members to the business. Australian Ethical has reduced its fees so that new and existing members benefit from increased competitiveness of its super options.

The net inflows and Christian Super addition combined saw the company's funds under management (FUM) rise 39% from 30 September 2022. But, the Australian Ethical share price is down almost 60% over the past year.

I think a rebound of the share market could be very useful for the company's FUM and profitability.

Healthia Ltd (ASX: HLA)

Healthia is described as an integrated allied healthcare organisation that includes networks of optometry, podiatry, and physiotherapy clinics.

The Healthia share price has fallen around 40% over the past year.

It's working on a number of goals. The company has been making acquisitions to grow its scale. It currently has a market share of around 3%, but it wants to be able to easily reach 50% of Australian and New Zealanders.

Research and development, and improving quality, are two other areas of focus. For example, it wants to co-locate complementary allied health services inside its existing footprint, as well as offering new services in existing clinics, such as retinal scanners in its optical stores.

The ASX All Ords share is expecting same clinic revenue growth of between 3% to 6% year over year. I think this will be a good tailwind for earnings, combined with increasing scale.

According to Commsec, it's valued at just 11 times FY23's estimated earnings.

The post 3 ASX All Ords shares I'm watching like a hawk in January appeared first on The Motley Fool Australia.

ASX shares that are hoping to grow substantially in the coming years could get some traction next year.

Of course, just because a business is growing doesn't necessarily mean that investors are going to recognise that potential within a 12-month time period, but I think underlying growth of the ASX share can indicate good things for the potential shareholder returns. That's why I've got my eyes on these three ideas:

Healthia Ltd (ASX: HLA)

Healthia is a small-cap ASX share with over 300 clinics. This healthcare share has three segments that are aimed at helping people across 'bodies and minds', 'feet and ankles' and 'eyes and ears'.

I think that, over time, scale can greatly add to this business' profitability as it grows the number of clinics through acquisitions and organic growth.

If the business can execute a steady pipeline of bolt-on acquisitions, it will naturally become a larger business over time.

The business already has a small presence in markets outside of Australia, in New Zealand and the USA, which gives it a longer growth runway.

According to Commsec, the business is valued at just 10 times FY23's estimated earnings with a potential grossed-up dividend yield of 5.7%.

Monash IVF Group Ltd (ASX: MVF)

This ASX share is about providing IVF services to help families have children. The company says that the maternal birth age has increased by two years over the last 20 years and is expected to further increase.

The IVF industry saw a 5% compound annual growth rate (CAGR) of volume between FY17 to FY22. After a disrupted period of COVID, 2023 could be a good year. It managed to slightly increase its market share in FY22.

It's gaining "momentum" in south east Asia with five IVF clinics across the region. It is planning to open two or three new clinics each year. By FY26, Asia could be contributing 25% of the group's stimulated cycles.

FY23 has started strongly – market share was up another 1.4% to 23.8%. According to Commsec numbers, it's priced at under 16 times FY23's estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading provider of software relating to screening for breast cancer and lung cancer.

It has built an impressive market share in the US. Of the women that are screened for breast cancer, at least one of Volpara's products is used on 40.5% of women's images.

The ASX share has an impressive gross profit of more than 90%, so extra revenue can help it power towards profitability. Its FY23 first-half result showed total revenue growth of 22% in constant currency terms.

I think a big step towards breakeven in 2023 will go some distance to quell investor concerns about potentially needing to do a capital raising.

Growth of average revenue per user (ARPU), geographic expansion and large client wins could be good tailwinds for the Volpara share price next year.

The US Food and Drug Administration (FDA) is expected to release breast density legislation, which could also be a boost for Volpara if it means more dialogue with patients about cancer risk.

The post 3 ASX shares I think are primed to break out in 2023 appeared first on The Motley Fool Australia.

The ASX healthcare share has announced a $15 million capital raising to fund acquisition opportunities and provide additional financial flexibility.

Healthia taps the market

Healthia intends to raise up to $10 million from institutional shareholders and up to $5 million from retail shareholders.

The institutional component is partially underwritten by Canaccord.

Retail shareholders will be entitled to subscribe for one new share for every 12.5 Healthia shares they hold at 7pm on Monday, 12 September.

New shares are being offered at an issue price of $1.47, representing a 3.3% discount from the last Healthia closing price of $1.52.

The capital raising will result in roughly 10.3 million new Healthia shares being issued, equating to around 8% of the company's current share count.

Following the capital raising and on a pro forma basis as of 30 June 2022, Healthia would have total liquidity of roughly $36.2 million.

Acquisitions ahoy

Healthia was extremely busy on the M&A front in FY22, spending $111.3 million on acquisitions to increase its portfolio from 212 to 307 businesses.

This acquisitive streak is set to continue.

In today's announcement, the company noted it has a large active pipeline of potential allied health acquisition opportunities. It's reviewing more than 110 allied health businesses as potential targets.

As a result, it is confident in being able to deploy at least $20 million to acquisitions in FY23.

To kick things off, Healthia has entered into three separate binding agreements to acquire 12 physiotherapy clinics.

It will be acquiring Watsonia Physiotherapy, a single clinic operating in Victoria.

Corio Bay Health Group will also join the fold. Its nine allied health businesses in Victoria will soon fall under the Healthia banner.

Finally, as already announced in June, the company will also acquire Sunshine Coast Hand Therapy, which comprises two clinics.

Healthia anticipates paying $8.29 million of total consideration for these acquisitions. This will comprise upfront cash of $6.61 million and the issuance of clinic class shares worth $1.68 million.

The company expects these acquisitions to contribute annualised revenue of $8.88 million and annualised EBITDA of $1.87 million.

Healthia also expects these acquisitions will be immediately earnings accretive. 

What's more, any earnings from acquisitions settled in FY23 will be in addition to the $40 million EBITDA guidance.

Healthia share price snapshot

The Healthia share price has tumbled 34% in the year to date. Over the last 12 months, Healthia shares are printing a 20% fall.

Healthia currently has a market capitalisation of $195 million.

The company requested today's trading halt until it makes an announcement regarding the outcome of the institutional component of the capital raising. 

At the latest, Healthia shares will resume trading on Monday.

The post Healthia shares halted on $15m cap raise and acquisition spree appeared first on The Motley Fool Australia.

The following ASX All Ords shares spent a day in the red as well, after releasing FY22 and half-yearly results today. However, a late rally saw two of the companies return to base. Let's take a look.

Healthia Ltd (ASX: HLA)

The Healthia share price dropped 4% today after the ASX-listed healthcare company brought in some subdued results for FY22.

The top line did quite well with revenue growth of 44.4% to $202.8 million, but Healthia recorded a net loss of $3.3 million.

Healthia attributes the loss to flooding events across Southeast Queensland and New South Wales, staff absenteeism and cancellations stemming from COVID-19. On top of this, there were one-off non-recurring acquisition, integration and restructuring costs.

Across the year, Healthia deployed $111.3 million in capital towards acquiring 95 new businesses. This includes the 63 Back In Motion physiotherapy clinics, enabling Healthia to become one of the largest health providers in Australia and New Zealand.

However, these acquisitions stretched Healthia's balance sheet. It increased borrowing to around $77 million and managed to negotiate an extension of its finance facility from $70 million to $100 million.

Management advised that it expected to record underlying earnings before interest, taxation, depreciation and amortisation of more than $40 million in FY23.

Healthia also plans to spend at least $20 million on acquisitions in FY23.

The company's current market capitalisation is around $231 million.

Family Zone Cyber Safety Ltd (ASX: FZO)

The Family Zone share price spent all day in the red on the back of a poor set of financial results for FY22 before returning to its previous closing price of 40 cents apiece in the final moments of trading. The company is focused on developing a cyber safety and parental control platform.

Revenue increased 399% from $8.96 million in FY21 to $44.73 million in FY22, but this couldn't curtail the hefty jump in its net loss. Family Zone recorded a 243% increase in its net loss from $21.98 million in FY21 to $75.38 million in FY22.

The significant change in results is due to the company's acquisition of Smoothwall and Cipafilter during the year.

Family Zone currently holds $32.75 million in cash and $0.2 million in long-term borrowings.

Operating cash outflow jumped from negative $15.48 million in FY21 to negative $37.32 million in FY22.

Family Zone's market capitalisation is around $352.23 million.

Audio Pixels Holdings Ltd (ASX: AKP)

The Audio Pixels share price fell by as much as 3% today on the back of soft results for HY22. However, shares in the ASX All Ords company also rallied back to their previous closing price of $14.47 in the final moments of trading.

Revenue went up from $58.3 million in HY21 to $78.6 million in HY22. Audio Pixels' net loss also went in the right direction, improving from $1.6 million to $0.68 million. However, when you account for foreign exchange differences, net loss rose from $2.66 million in HY21 to $2.98 million in HY22.

Operating cash outflow improved slightly from $2.64 million in HY21 to $2.50 million in HY22.

It appears Audio Pixels needs to raise more capital or rely on more debt given it holds $0.59 million in current assets and $1.40 million in current trade payables.

Audio Pixels relied heavily on unsecured borrowings of $2.39 million in HY22.

The current market capitalisation of Audio Pixels is around $415 million.

The post 3 ASX All Ords shares beaten up on results appeared first on The Motley Fool Australia.

• Some promising ASX shares are offering both reasonable dividend yields, earnings growth and plans for more
• Collins Foods is a leading fast food business with expanding networks of KFCs and Taco Bells
• Healthia is a rapidly growing allied health business which is growing organically and enacting a steady stream of acquisitions

Some ASX shares are known for growth, whilst others are known for dividends. There is a select group that may be able to offer investors a combination of both growth and dividends.

These are businesses that have long-term growth plans whilst also paying shareholders dividends along the way:

Collins Foods Ltd (ASX: CKF)

Collins Foods is an ASX share that operates a network of KFCs in both Europe and Australia. It is steadily expanding its outlet numbers, which is adding to profitability. The company is also achieving long-term same store sales growth.

At the start of February 2022, it completed the acquisition of nine KFC restaurants in the Netherlands.

In the first half of FY22, underlying net profit increased by 31.6% to $28.9 million. This allowed the business to fund a 14% increase of the interim dividend.

But Collins Foods is no longer just a KFC business. It's leveraging its KFC experience and fast-food know-how to scale its Taco Bell Australia business. The ASX share is investing in marketing to build brand awareness. HY22 Taco Bell revenue surged 33% to $14.8 million, reflecting the contribution of five new restaurants.

The Taco Bell segment is now breakeven at the earnings before interest, tax, depreciation and amortisation (EBITDA) level. It increased the total to 17 restaurants. It's expecting to add nine to 12 new outlets in FY22.

Overall, the ASX share is expecting to add 24 new restaurants across the group in FY22.

According to Commsec, the Collins Foods share price is valued at 23x FY22's estimated earnings with a grossed-up dividend yield of 3.1%.

Healthia Ltd (ASX: HLA)

Healthia is a business that operates across multiple allied health services including optometry, podiatry and physiotherapy clinics.

The business is utilising two methods of growth. It's looking to organically grow profit by improving its current clinic network. Healthia is also expanding through the use of acquisitions.

For example, in late December it announced acquisitions that would add underlying revenue of $9.52 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.9 million. Those acquisitions by the ASX share included eight optometry locations and two physiotherapy locations.

FY21 saw the business grow underlying revenue by 51.8%, organic revenue growth of 9.1% and underlying earnings per share (EPS) growth of 51.6% to 11.13 cents. The business paid a FY21 annual dividend of 4.5 cents per share, the final dividend was increased by 25%.

The Healthia share price is valued at 16x FY22's estimated earnings with a projected grossed-up dividend yield of 4.1%.

The post 2 ASX shares that could be good buys for both growth and dividends appeared first on The Motley Fool Australia.

Shares in the healthcare company are currently swapping hands at $2.41, up 3% on the day and 10% in the past week. The Healthia share price is also up 96.5% in the past year.

Let's take a look at what might be impacting investor confidence in the company lately.

What is the company up to?

Healthia operates podiatry, physiotherapy, and optometry businesses all over the nation.

The Healthia share price has been surging in the final week of December on the back of several major acquisitions.

On Christmas Eve, the company informed investors it is taking over two businesses in Queensland and one company in Victoria. This includes two physiotherapy businesses and an optometry company.

These acquisitions will improve revenue by $9.52 million and increase earnings before interest, tax, depreciation, and amortisation (EBITDA) by $1.9 million.

The company also revealed it had completed settlement on five PhysioWorks physiotherapy clinics in Southeast Queensland. These were first announced to the market on November 15.

In a further possible boost to the Healthia share price, the company advised on December 23 it has completed settlement for 63 Back in Motion physiotherapy clinics. Collectively, the clinics generated an underlying revenue of $62.3 million and EBITDA of $12.2 million in the 2021 financial year.

Overall, Healthia is expecting all the acquisitions in the final six months of the year will increase underlying revenue by $82.9 million and EBITDA by $15.9 million.

The company has had a significant year despite its clinics being impacted by the COVID-19 pandemic. In October, Healthia advised the market 798 staff had received JobKeeper payments, totalling $10.8 million, in the last financial year.

Healthia share price recap

The Healthia share price has skyrocketed more than 93% in the year to date and has risen nearly 15% in the past month.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned more than 12% in the past year.

The company has a market capitalisation of more than $306 million based on the current share price.

The post This small-cap ASX healthcare share just hit a 52-week high appeared first on The Motley Fool Australia.

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%.

The post 2 small cap ASX shares for 2022 with big potential appeared first on The Motley Fool Australia.

After a sharp downturn in late September, where it lost around 7% in just one week, the S&P/ASX 200 Health Care Index (XHJ) rebounded 4% and began climbing northwards once more.

Within this group lies a subset of individual companies that gave back handsomely to shareholders last month.

Here are four of the standouts from the ASX healthcare basket for the month of October.

Healthia Ltd (ASX: HLA)

Shares in healthcare group Healthia soared 13% in October towards their 52-week high, closing the month at $2.05 per share.

Driving this upside was positive catalysts from the company's acquisition of the Back in Motion physiotherapy franchise, which settled during the month.

This strategic acquisition gives Healthia exposure to a suite of physiotherapy clinics across Australia and New Zealand, thereby strengthening its Allied Health portfolio.

Healthia provided another update at month's end confirming it had acquired a further 18 Back in Motion clinics, thereby bringing the total number of clinics acquired to 32 – half of the company's 64 physio clinics in total.

Investors sent Healthia shares flying on the news, bidding prices higher after coming off a low of $1.78 mid-month.

From this point, Healthia shares jumped over 15%, to finish October, and finished yesterday's session in the green at $2.02.

Ramsay Health Care Limited (ASX: RHC)

Global hospital giant Ramsay Healthcare had a turbulent month, however, came out on top as we rolled over into November.

Shares in the ASX healthcare behemoth jumped 4% from month start to end, however, came off a low of $65.94 at the midpoint to accelerate northwards at a rapid pace.

Investors piled in and added another $5.28 per share in a number of days for Ramsay, as state governments in NSW and Victoria began to roll back COVID-19 restrictions that were limiting hospital patient turnover.

News of the restrictions easing sent Ramsay shares soaring in the days afterwards, as investors appeared to regain confidence in the hospital specialist once again.

This came off a solid first quarter performance on the chart for Ramsay, where it also gained another $6.80 or 11% per share in the three months ending 30 September 2021.

Ramsay shares are set to open the session at $71.85 after inching a further 1% higher in yesterday's trade.

Aroa Biosurgery Ltd (ASX: ARX)

Shares in soft tissue regeneration company Aroa Biosurgery were another takeout from the ASX healthcare basket last month.

After a wild ride, the wound care and tissue reconstruction specialist finished the month in the green, posting a solid 6.25% gain to close out October.

However, at one point, Aroa shares were trading around 15% higher at $1.22, after the company released its preliminary half year results.

It was a robust half for the Aroa, hallmarked by a contract extension for its Myriad products. This decision enables around 1,500 hospitals and healthcare systems access to its Myriad segment.

Aroa shares jumped on news of the company's performance and contract extension, with investors securing their position in the company's growth engine in numbers.

After another day in the green, Aroa shares finished the session 1.8% higher at $1.125 yesterday.

Rhythm Biosciences Ltd (ASX: RHY)

Shares in medical diagnostics company Rhythm Biosciences were star performers last month, claiming a 33.5% gain for its shareholders to bite into.

It was all systems go for Rhythm in October, as investors bid up its share price in rapid succession towards the back end of the month.

Perhaps they were seeking to own a piece of a company making significant advancements in the field of medical diagnostics – like with its ColoSTAT testing technology.

ColoSTAT is the company's low-cost blood test for the early detection of colorectal cancer.

Rhythm claims this disruptive technology is significantly cheaper and easier to administer than the current standard of care.

And oh my, is Rhythm projecting some serious numbers for its growth outlook in this segment.

The company forecasts a total addressable 'screening value' of US$38 billion and a total addressable market of over 770 million people in its market projections for ColoSTAT.

In fact, Rhythm reckons that it can even reach up to a billion people if the standard screening age is lowered to 45 years old.

Rhythm expects it will derive first revenues from the product in late 2022 and is currently working on building out its pipeline of other cancer diagnostics.

For now, it is set to open the session at $1.70 after climbing a further 1.5% into the green yesterday.

Honourable mentions include Volpara Health Technologies Ltd (ASX: VHT) who was up around 10% but fell sharply in the last week of October; and Impedimed Limited (ASX: IPD), which climbed 7 cents per share to post a new 52-week high of 19 cents.

The post These were the best performing ASX healthcare shares in October appeared first on The Motley Fool Australia.

Both of these companies are smaller than the ASX blue chips like Australia and New Zealand Banking Group Ltd (ASX: ANZ) and BHP Group Ltd (ASX: BHP). However, they may have the ability to produce more capital growth because of their smaller starting size.

Lovisa Holdings Ltd (ASX: LOV)

This is a business that sells affordable jewellery to customers.

It has more than 500 stores across the world. While the biggest number (153 at the end of FY21) is in Australia, it has growing store networks in Europe, Asia, the Middle East, South Africa, the UK, and the USA. COVID-19 caused disruption to growth, but the company has plans to continue the rollout. The Beeline acquisition helped with the expansion into Europe, with 87 stores converted to Lovisa branding.

FY21 demonstrated rising profitability at various levels of the business. Revenue grew 18.9% to $288 million, pre AASB16 earnings before interest and tax (EBIT) increased 39.4% to $42.7 million, and net profit after tax (NPAT) grew by 43.3% to $27.7 million. The company also returned to paying a dividend.

In the first eight weeks of FY22, the ASX share saw that total sales were up 56% year on year, despite lockdowns in some locations.

While 2021 calendar year store opening growth is expected to be slowed due to logistics challenges, it's focused on opportunities for increasing its store network and its digital presence. It currently has 551 stores.

The broker Morgan Stanley thinks the company is a buy. It believes the Lovisa share price is valued at 36x FY23's estimated earnings.

Healthia Ltd (ASX: HLA)

As the name may suggest, Healthia is a healthcare business. It is aiming to build Australia's leading diversified healthcare business across the divisions of 'bodies and minds', 'feet and ankles', and 'eyes and ears'.

The company has a two-pronged approach to achieve growth.

The first is with its organic growth. It says its model has demonstrated the ability to accelerate organic growth as a result of a focus and investment in industry-leading education, tools, and support for clinicians and team members. In FY20 it achieved organic revenue growth of 5.3% and in FY21 it was 9.1%.

The second area of growth is the ASX share's acquisitions to expand and diversify its operations. Part of that strategy is to use 'clinic class shares' to retain and incentivise clinicians. These shares are non-voting but entitle the holder to a share of any dividend declared.

One of the latest acquisitions has been Back in Motion (BIM) for a total cost of $88.4 million, being $64.6 million in cash and $16.1 million of clinic class shares, as well as $5.8 million of new shares and $1.9 cash payable after completion of the acquisition. BIM is one of the largest and fastest-growing physiotherapy businesses in Australia and New Zealand.

The BIM deal made Healthia the No. 1 provider of physiotherapy services in Australia with a total of 122 physiotherapy clinics. In FY21, BIM generated underlying revenue of $62.9 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $12.3 million respectively.

In FY21, the Healthia business reported underlying revenue growth of 51.8% to $140.41 million and underlying EBITDA of $21.47 million (up 62.3%). Underlying net profit grew 91.4% to $8.86 million. The ASX share also paid a full-year dividend of 4.5 cents per share.

The post 2 impressive ASX shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

At the same time, the S&P/ASX 200 Health Care index (XHJ) is also up 0.7% from the open.

Yet, these 3 ASX healthcare shares are well ahead of the broad indices today and have each climbed over 10%. Here's why they are racing higher today.

Australian Pharmaceutical Industries Ltd (ASX: API)

Australian Pharmaceuticals' share price is on the move today after the company received a revised offer from Wesfarmers Ltd (ASX: WES) to acquire the company, on an all cash deal of $1.55 per share.

API shares have gained 16.5% since the open following this announcement.

Its board has unanimously recommended the decision, after rejecting the original $1.38 per share proposal back in July. The revised offer represents a 4.8% premium to API's current share price of $1.48.

Wesfarmers has until 16 October to conduct its due diligence, after which it will be all systems go to get the deal done, so it appears.

Healthia Ltd (ASX: HLA)

The Healthia share price is surging on Thursday after the company announced another acquisition to its list.

Healthia shares are soaring 10% after the company advised it has entered into a binding agreement to acquire Rothwell Physiotherapy.

Rothwell is a Brisbane based Physiotherapy clinic, which services the Moreton Bay area. Its services include musculoskeletal and spinal physiotherapy, alongside injury rehabilitation.

Healthia completed the transaction on an all cash payment of $1.3 million. A provision of $320,000 is baked into the deal if stipulated earnings targets are hit. The acquisition is expected to finalise on or before 30 November.

Investors have bought the news, and the Healthia share price is now exchanging hands at $1.98 a piece, up from yesterday's close of $1.80.

Anteotech Ltd (ASX: ADO)

The Anteotech share price is charging higher today and is currently up 7% to 22.5 cents. At one point today, it was trading at 24 cents apiece, a 14% jump from the previous close.

Anteotech shares are lifting after the company announced it had signed a distribution agreement with Ramma Dental. Ramma is to become the exclusive distributor of the company's EuGeni reader platform and COVID-19 Antigen Rapid Diagnostic Test in both Greece and Cyprus.

EuGeni is Anteotech's "rapid diagnostic platform" that is integrated to perform a rapid SARS-CoV-2 (COVID-19) antigen test using a nasal swab.

Ramma Dental has "a strong network of customers across public and private sectors", as per Anteotech's announcement.

As a result of the agreement, Anteotech has now secured distribution agreements for EuGeni in 13 markets, having signed a similar distribution contract in Turkey last week.

These three ASX healthcare shares have each outpaced the benchmarks today.

The post These 3 ASX Healthcare shares have surged over 10% today appeared first on The Motley Fool Australia.

At the time of writing, the Healthia share price is travelling north of 10% to $1.98 apiece.

Healthia expands business portfolio

Investors are fighting to get a hold of Healthia shares following the company's latest addition to its growing portfolio.

According to the release, Healthia advised it has entered into a binding agreement to acquire Rothwell Physiotherapy.

A family-owned and operated clinic, Rothwell Physiotherapy is located on the north side of Brisbane. The facility, which services the wider Moreton Bay region, provides physiotherapy and exercise physiology for patients.

The upfront consideration for Rothwell Physiotherapy will be a cash payment of $1.3 million. In addition, a contingent consideration of $0.32 million will be available if pre-defined earnings targets are achieved.

The settlement of Rothwell Physiotherapy is conditional upon the transfer of property leases to Healthia and the approval of usual customary conditions.

It's expected that all conditions will be met and the acquisition completed on or before 30 November 2021.

Management commentary

Healthia managing director Wesley Coote said:

We are very much looking forward to welcoming the team at Rothwell Physiotherapy into the Healthia family. The addition of Rothwell Physiotherapy is in line with Healthia's stated growth strategy, and brings us one step closer to being the number one provider of physiotherapy services in Australia.

We have a strong acquisition pipeline in place for this financial year, underpinned by industry participants placing greater value on the support and stability that a larger group such as Healthia, can provide.

The company has projected the acquisition would contribute additional revenue of $2.13 million to Healthia. Furthermore, it estimates earnings before interest, tax, depreciation and amortisation (EBITDA) to come in around $0.36 million.

Healthia share price summary

Since listing on the ASX in September 2018, Healthia has grown its portfolio from 104 to 217 allied health businesses. Recent acquisitions include AllCare Physiotherapy, John Holme Optometry and Anytime Physio.

The company's shares are up 50% in 2021, and have more than doubled over the past 12 months.

The post Why the Healthia (ASX:HLA) share price is rocketing 10% today appeared first on The Motley Fool Australia.

Smaller businesses may have the potential to produce good returns because they are at an earlier point of their growth journey.

Here are two to think about:

Pacific Current Group Ltd (ASX: PAC)

Pacific Current is a fund manager which invests in boutique asset managers around the world. Some of the investments include GQG, ROC, Proterra, Pennybacker and Victory Park. One of its newest investments includes Astarte Capital Partners.

The ASX share supports its investments with both capital and expertise to help them grow. Those investments have been growing quite a lot during FY21. Its economic relationship with each fund manager is different, so it benefits somewhat differently from each investment as they grow.

In the last three months of FY21, the company said that total funds under management (FUM) controlled by asset managers within its portfolio increased 15.4% to $142.6 billion. That included "strong" inflows at GQG, ROC, and Victory Park.

At the time of that quarterly update, the Pacific Current CEO Paul Greenwood said:

Over the last few months we have seen signs of broader FUM growth across our portfolio, which bodes well for FUM growth in FY22 and beyond.

The ASX share is currently rated as a buy by the broker Ord Minnett with a price target of $6.90. The broker is attracted to the growth of Pacific Current's underlying profit (excluding performance fees).

According to Ord Minnett, the Pacific Current share price is valued at 11x FY21's estimated earnings with a projected grossed-up dividend yield of 8.8%.

Healthia Ltd (ASX: HLA)

This is a small cap ASX share that offers a number of healthcare services including podiatry, physiotherapy, hand and upper arm therapy, pilates, orthopaedic, optometry, retail footwear, custom orthotic manufacturing and medical supplies.

The business has been rapidly expanding thanks to both organic growth and acquisitions.

In the FY21 first half result the business reported revenue growth of 38.9% to $61.5 million. The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased by 486 basis points year on year to 17.87%. This helped underlying earnings per share (EPS) jump 78.2% to 6.86 cents.

Healthia is aiming to improve its organic growth with initiatives like further enhancing its centralised support functions to clinical teams, finding additional opportunities to co-locate services, introducing services into existing locations and working on new ways to engage its teams.

The ASX share expects to deploy a minimum of $20 million of capital per annum for new allied health acquisitions.

Healthia's board have been pleased with the profitability of the business, which is why it implemented an interim dividend of 2 cents per share.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.