ASX small caps posted another solid day on the bourse with the Small Ordinaries recording a 1.25% gain while the Emerging Companies Index lifted 1.2%. This outshines the smaller gain by the ASX 200 of 0.51%.
Kelly Partners Group Limited (KPG)
Market Cap: 462.5 million
Share price movement: -12.2%
Kelly Partners reported a 22.8% increase in 1H25 revenue, reaching $64.9 million, up from $52.9 million in 1H24. Underlying NPATA attributable to the Kelly + Partners parent group rose by 12.0% to $4.9 million. KPG continues its quest to become a premier global accounting firm for private business owners and now has operations in Australia, Hong Kong, India, and the USA, where US partnerships contribute approximately 12.2% to 15.2% of the group’s revenue. In this vein, KPG has launched initiatives such as an undergraduate program and a digital client app to enhance engagement. In 1H25, KPG made four acquisitions and plans further growth through its Partner-Owner-Driver model, which emphasizes partnership retention and integration by taking a 51% ownership in any acquisitions. These acquisitions added an estimated $14.4m to $17.1m in revenue to the group and spanned the US, UK, and Australia.
Tower Ltd (TWR)
Market Cap: $455.4 million
Share price movement: +2.6%
Tower Limited, a Kiwi insurer, has revised its earnings guidance for the fiscal year 2025, increasing its underlying net profit after tax (NPAT) forecast to between $60 million and $70 million, up from a previous range of $50 million to $60 million. This adjustment is based on strong performance in the first quarter and positive trends observed in January. The revision assumes full utilization of a $50 million allowance for large events, with the only notable event so far being the Dunedin flooding, incurring an estimated cost of $3 million. Additionally, Tower adjusted its guidance for gross written premiums (GWP) to a growth range of 7% to 12%, down from 10% to 15%, largely due to a decrease in average premiums driven by a higher proportion of lower-risk insurance policies. The combined operating ratio (COR) forecast has improved to between 84% and 86%. More detailed performance insights will be shared during the annual shareholder meeting on February 11.
Biome Ltd (BIO)
Market Cap: $135.9 million
Share price movement: +0.8%
Biome Australia Limited has announced a co-investment agreement with Australia’s Food and Beverage Accelerator (FaBA) to develop its Lactobacillius plantarum BMB18 probiotic strain. The partnership is backed by a $50 million grant from the Australian Government’s Department of Education through the Trailblazer Program. FaBA, a $160 million initiative, facilitates collaboration between industry and universities to foster innovation within the food and beverage sector. Biome will retain 100% ownership of the intellectual property developed through this project, which will be funded through matched contributions, with Biome potentially investing up to $550,000 over the next two years for approved clinical research. This partnership aligns with Biome’s Vision 27 strategy, aiming to enhance its research and development pipeline, reduce costs, and advance the commercialization of its probiotic products.
Sportshero Ltd (SHO)
Market Cap: $16.8 million
Share price movement: +15.0%
SportsHero Limited today announced a strategic partnership with XL Axiata, Indonesia’s third-largest telecommunications company, to market the iGV Family Game Room Pass. This two-year agreement aims to tap into Indonesia’s rapidly growing esports market, which comprises approximately 8.3 million dedicated PC gamers. The collaboration will leverage XL’s vast customer base of around 57.5 million and their Direct Carrier Billing (DCB) service, facilitating seamless subscription payments. The iGV Family Game Room offers over 200 popular gaming titles at an affordable monthly subscription price of IDR 65,000 (about A$6.30). This partnership is expected to yield a minimum margin of 38% for SportsHero on gross subscription value and enhance customer convenience, security, and access to digital entertainment. Furthermore, the Indonesian government’s support for the esports industry is anticipated to accelerate growth in the sector, bolstered by youth engagement and advancements in gaming infrastructure.
Vection Technologies (Vr1)
Market Cap: $46.3 million
Share price movement: -3.1%
Vection Technologies has announced a significant contract extension valued at $4 million within the defense sector. This extension builds upon previous agreements with the same client, showcasing the company’s ability to foster long-term relationships and repeat business. The contract involves the development of AI software that integrates with Dell Technologies, aimed at enhancing high-end infrastructure design and real-time data processing capabilities. The partnership underlines Vection’s commitment to advancing national security through innovative technologies. Revenue from this contract will be recognized fully in the fiscal year 2025, thereby reinforcing the company’s revenue pipeline. The announcement emphasizes Vection’s strategic value in the defense and law enforcement sectors, as well as its growing reputation for delivering secure and scalable AI and XR solutions.
Maggie Beer Holdings (MBH)
Market Cap: $21.3 million
Share price movement: flat
Maggie Beer announced a strategic review of its operations and a trading update for the first half of the fiscal year 2025. Despite a reported increase in sales of approximately 5.5% to 6% for the half-year period ending December 31, 2024, the company’s operating costs continue to challenge profitability, with trading EBITDA declining by 7% to 8%. The Board, led by Chairperson Sue Thomas, recognizes the need for significant cost-cutting measures and intends to streamline operations by reducing senior executive roles and restructuring divisions to focus on profitability and efficiency. The company is also progressing with the sale of its Paris Creek Farms division, which has been classified as a discontinued operation. MBH retains a healthy liquidity profile with $11m in cash and no financial debt.
Bluebet Holdings (BBT)
Market Cap: $223.7 million
Share price movement: +19.7%
BlueBet announced a significant strategic acquisition of the assets of TopSport, an Australian sports and racing betting company. BlueBet will pay $10m in consideration up front then an earn out based on Net Gaming Revenue at the next 3 anniversaries with a minimum earnt out payment of $5 million (cumulative) at the second. TopSport achieved $198.9 million betting turnover in the first half of 2025 at an attractive 5.9% win rate.
This acquisition is expected to be highly beneficial for shareholders, with projections indicating over 30% earnings per share (EPS) accretion in FY26 and FY27, primarily coming from revenue synergies due to the combination with Betr, where there is limited customer crossover. The acquisition aligns with BlueBet’s goal of achieving a 10-15% market share in Australia, enhancing its margin advantage and customer engagement through its technology platform. To fund this acquisition, BlueBet will raise $15 million through an institutional placement.
Little Green Pharma Ltd (LGP)
Market Cap: $36.3 million
Share price movement: +9.1%
Little Green Pharma announced a binding sale and purchase agreement to acquire HHI (Australia) Pty Ltd, owner of the Health House medicinal cannabis distribution business. This acquisition is a strategic move to enhance LGP’s vertical integration and aligns with its acquisition strategy amidst the restructuring of the Australian medicinal cannabis industry. Health House has been a long-standing partner, providing LGP with approximately $7.5 million in annual revenue. The acquisition will involve a total cash outlay of around $375,000, which includes the purchase of assets and absorption of Health House’s liabilities. LGP’s CEO, Paul Long, emphasized the importance of this acquisition in strengthening the company’s supply chain and capturing margins. The deal comes after Health House was listed for sale at $10.9 million in September 2024.
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ASX Small Cap News 19 February 2025
Another full day of earnings season today with plenty of action. Here is just a snippet of a few interesting reports and announcements. Emeco Holdings (EHL) Market Cap: $466.5m +4.8% Emeco reported strong financial and operational results for the first half of FY25. The company’s revenue, excluding underground contract mining, increased by 11% compared to 1H24. Operating EBITDA rose to $145.8 million, a 6% increase, while Operating EBIT reached $68.3 million, up 13%. The EBITDA margin improved from 32% to 38%, and the EBIT margin increased from 14% to 18%. Operating NPAT was $38.3 million, a 15% rise, and statutory NPAT was $33.6 million, a significant 73% increase. Emeco’s cash flow also saw a 22% increase, reaching $48.8 million, with a cash flow conversion rate of 94%. The company’s return on capital improved to 16%, and its leverage ratio decreased […]
ASX Small Cap News 18 February 2025
BSA Limited (BSA) Market Cap: $12 million Share price movement: -86% BSA Limited has been informed by NBN Co that it has not been selected as a preferred tenderer for the new NBN Field Services Contract, making an award highly unlikely. BSA, which has been pursuing this tender in collaboration with UGL, remains prepared for various outcomes while assessing the impact of this development. The existing NBN Unified Field Operations contract, set to expire on 30 September 2025, continues without volume guarantees, but BSA has not yet received notifications regarding volume changes. This NBN contract is critical for BSA, accounting for approximately 80% of its revenue for FY2024. The reaction was savage and the company lost most of its value on the news. Related, NAOS Small Cap Opportunities Company (NSC), a listed investment company that owns 31% of BSA, was […]
ASX Small Cap News 17 February 2025
Results season is in full swing on the ASX as we enter the second half of February. We detail some of the most interesting results that were released from small caps on the ASX. Audinate Group Limited (AD8) Market Cap: $799.3m Share price gain: +26.5% Audinate's result handsomely beat expectations of the market despite challenges arising from OEM inventory overstocking. For first half 2025 period, Audinate reported a gross profit of US$16 million, a 29% decrease compared to the same period last year, largely due to reduced demand for hardware products. However, the company saw an improvement gross profit margin from 72% to 82%, driven by a shift towards higher-margin software solutions. The CEO, Aidan Williams, expressed confidence in the company’s business model and ongoing investments in both audio and emerging video software markets. Key metrics showed 61 design wins […]
ASX Small Cap News 7 February 2025
The market struggled for direction today with large caps closing not far above flat and the Small Ords gave up early gains to finish only 3 basis points ahead of yesterday's close. The micro cap end, represented by the Emerging Companies Index fared a little better, ending 40 basis points in the green. Here's what made news today in ASX Small caps. ikeGPS Group Limited (IKE) Market cap: $116.5 million Share price movement: +29.5% ikeGPS Group announced that it has discontinued discussions regarding a previously unannounced and unsolicited acquisition approach from a credible private equity group. The proposed acquisition was to buy 100% of IKE’s shares at an indicative offer of approximately NZ$1.00 per share, representing a significant premium of over 62% based on IKE’s share price as of February 5, 2025. However, the board did not believe that this […]
ASX Small Cap News 6 Febrary 2025
It was another strong day for equities today, led by discretionary, financials, and gold. This lifted the large caps more than the smaller end with the ASX 200 up 1.23% compared to the Small Ordinaries up 0.56% and the Emerging Companies Index up 0.90%. Here's what made news today. SOCO Corporation Ltd (SOC) Market Cap: $12.7 million Share price movement: -27.2% SOCO released its preliminary unaudited first-half revenue for FY2025 at $11.0 million, marking an increase from $9.3 million in the same period last year. Despite a strong start with $18 million in contracts signed by October 2024, project delays and a decline in demand from Federal Government clients have impacted performance. The company is working to diversify its client base, particularly in Victoria and Queensland, and remains optimistic about resuming delayed projects. Forecasts for FY2025 revenue have been adjusted […]
ASX Small Cap News 5 February 2025
ASX small caps posted another solid day on the bourse with the Small Ordinaries recording a 1.25% gain while the Emerging Companies Index lifted 1.2%. This outshines the smaller gain by the ASX 200 of 0.51%. Kelly Partners Group Limited (KPG) Market Cap: 462.5 million Share price movement: -12.2% Kelly Partners reported a 22.8% increase in 1H25 revenue, reaching $64.9 million, up from $52.9 million in 1H24. Underlying NPATA attributable to the Kelly + Partners parent group rose by 12.0% to $4.9 million. KPG continues its quest to become a premier global accounting firm for private business owners and now has operations in Australia, Hong Kong, India, and the USA, where US partnerships contribute approximately 12.2% to 15.2% of the group’s revenue. In this vein, KPG has launched initiatives such as an undergraduate program and a digital client app to […]
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ASX Small Cap News 19 February 2025
Another full day of earnings season today with plenty of action. Here is just a snippet of a few interesting reports and announcements. Emeco Holdings (EHL) Market Cap: $466.5m +4.8% Emeco reported strong financial and operational results for the first half of FY25. The company’s revenue, excluding underground contract mining, increased by 11% compared to 1H24. Operating EBITDA rose to $145.8 million, a 6% increase, while Operating EBIT reached $68.3 million, up 13%. The EBITDA margin improved from 32% to 38%, and the EBIT margin increased from 14% to 18%. Operating NPAT was $38.3 million, a 15% rise, and statutory NPAT was $33.6 million, a significant 73% increase. Emeco’s cash flow also saw a 22% increase, reaching $48.8 million, with a cash flow conversion rate of 94%. The company’s return on capital improved to 16%, and its leverage ratio decreased […]
ASX Small Cap News 18 February 2025
BSA Limited (BSA) Market Cap: $12 million Share price movement: -86% BSA Limited has been informed by NBN Co that it has not been selected as a preferred tenderer for the new NBN Field Services Contract, making an award highly unlikely. BSA, which has been pursuing this tender in collaboration with UGL, remains prepared for various outcomes while assessing the impact of this development. The existing NBN Unified Field Operations contract, set to expire on 30 September 2025, continues without volume guarantees, but BSA has not yet received notifications regarding volume changes. This NBN contract is critical for BSA, accounting for approximately 80% of its revenue for FY2024. The reaction was savage and the company lost most of its value on the news. Related, NAOS Small Cap Opportunities Company (NSC), a listed investment company that owns 31% of BSA, was […]
ASX Small Cap News 17 February 2025
Results season is in full swing on the ASX as we enter the second half of February. We detail some of the most interesting results that were released from small caps on the ASX. Audinate Group Limited (AD8) Market Cap: $799.3m Share price gain: +26.5% Audinate's result handsomely beat expectations of the market despite challenges arising from OEM inventory overstocking. For first half 2025 period, Audinate reported a gross profit of US$16 million, a 29% decrease compared to the same period last year, largely due to reduced demand for hardware products. However, the company saw an improvement gross profit margin from 72% to 82%, driven by a shift towards higher-margin software solutions. The CEO, Aidan Williams, expressed confidence in the company’s business model and ongoing investments in both audio and emerging video software markets. Key metrics showed 61 design wins […]
ASX Small Cap News 7 February 2025
The market struggled for direction today with large caps closing not far above flat and the Small Ords gave up early gains to finish only 3 basis points ahead of yesterday's close. The micro cap end, represented by the Emerging Companies Index fared a little better, ending 40 basis points in the green. Here's what made news today in ASX Small caps. ikeGPS Group Limited (IKE) Market cap: $116.5 million Share price movement: +29.5% ikeGPS Group announced that it has discontinued discussions regarding a previously unannounced and unsolicited acquisition approach from a credible private equity group. The proposed acquisition was to buy 100% of IKE’s shares at an indicative offer of approximately NZ$1.00 per share, representing a significant premium of over 62% based on IKE’s share price as of February 5, 2025. However, the board did not believe that this […]
ASX Small Cap News 6 Febrary 2025
It was another strong day for equities today, led by discretionary, financials, and gold. This lifted the large caps more than the smaller end with the ASX 200 up 1.23% compared to the Small Ordinaries up 0.56% and the Emerging Companies Index up 0.90%. Here's what made news today. SOCO Corporation Ltd (SOC) Market Cap: $12.7 million Share price movement: -27.2% SOCO released its preliminary unaudited first-half revenue for FY2025 at $11.0 million, marking an increase from $9.3 million in the same period last year. Despite a strong start with $18 million in contracts signed by October 2024, project delays and a decline in demand from Federal Government clients have impacted performance. The company is working to diversify its client base, particularly in Victoria and Queensland, and remains optimistic about resuming delayed projects. Forecasts for FY2025 revenue have been adjusted […]
ASX Small Cap News 4 February 2025
The Australian market failed to find much direction after a night of tariff jitters and closed near flat. However, things were a bit more positive at the lower end of the market with the Small Ordinaries Index closing 0.32% higher and the Emerging Companies Index 1.18% higher. OncoSil Medical Ltd (OSL) Market Cap: $32.3 million Share price movement: +40% OncoSil Medical Limited has announced that 120 German hospitals are now authorized to negotiate funding for their OncoSil pancreatic cancer treatment device under Germany’s innovation funding program (NUB). The device targets locally advanced pancreatic tumors using Phosphorous-32 (32P) and is administered with chemotherapy for enhanced effectiveness. This marks a 43% increase from 2024, reflecting growing demand and acceptance of the device in the German healthcare system. The OncoSil device, which administers a targeted treatment for unresectable pancreatic cancer, has received significant […]
