Investing in small cap stocks gives an opportunity to invest in future market leaders. Potential growth companies are
Yojee Limited (ASX: YOJ)
Yojee Limited (ASX: YOJ) delivered a strong operational performance in Q1 FY2025, underpinned by robust growth in transactional volumes and expanding enterprise customer adoption. Transaction volumes increased from 134,379 in Q3 FY2023 to 141,154 in Q4 FY2023 and further to 167,769 in Q1 FY2025, marking a 24.9% increase over two quarters. This reflects the effectiveness of Yojee’s sales and marketing strategies and the growing adoption of its platform among enterprise clients. Monthly average transaction volumes have also trended positively, with new enterprise contracts expected to come online this calendar year, supporting continued growth momentum. Operationally, Yojee attains the place among top growth stocks having achieved significant milestones in Indonesia, successfully deploying its Transport Management System (TMS) at three of the six contracted mill sites for PT APP Purinusa Ekapersada (APP). The TMS is fully integrated with APP’s SAP ERP system, streamlining two-way data exchange and enhancing operational efficiencies. This deployment has expanded Yojee’s carrier network and strengthened its market position in the region. The remaining sites are scheduled to go live in H2 FY2025, further cementing Yojee’s footprint within APP’s network.
Financially, Yojee reported cash receipts of AU$268k for Q1 FY2025, a 139% QoQ increase, primarily due to timing factors. However, trade revenue declined 10.5% sequentially and 54% YoY to AU$180k, reflecting a transitional period in revenue recognition. Net operating cash outflows improved by 8% QoQ to AU$718k, driven by disciplined cost management despite ongoing investments in growth initiatives. The company’s cash balance of AU$3,522k as of 30 September 2024, with zero debt, provides a solid foundation for executing its strategic plans. Yojee’s TMS continues to drive value for enterprise customers, enabling enhanced security, real-time visibility, and optimised transport operations. The system’s integration of gate pass features allows APP to centralise transport management, improving compliance and decision-making. Alongside its deployments with APP, Yojee has secured several new contracts, expected to contribute to transactional volume growth and an expanded carrier network.
The company is among the best growth stocks to buy now, as it is strengthening its sales pipeline through a refined commercial model, offering incentives for volume growth, geographic expansions, and prepayments. Investment in its Freight Management System (FMS), scheduled for launch in H1 2025, represents a strategic complement to the TMS, addressing growing demand for integrated logistics solutions. With a robust sales pipeline, operational momentum, and a scalable enterprise strategy, Yojee is well-positioned for sustained growth in the evolving logistics landscape.
Australian Vintage Limited (ASX: AVG)
Australian Vintage Limited is one of the growing companies to invest in having demonstrated robust operational and strategic progress, delivering $261 million in revenue and a 25% increase in EBITS to $13.2 million. With exports contributing two-thirds of total revenue, the company is leveraging strong global demand, particularly in the no-and-low alcohol wine category, where it leads the market and achieved 20% revenue growth year-on-year. This momentum is supported by a refreshed, experienced Board with a proven track record in driving revenue growth and a comprehensive plan for expanding its footprint across Asia and the Americas. The company is targeting cash flow neutrality in FY25, aligning with industry norms due to 70% of prior vintage grape payments occurring within the fiscal year. AVG has outlined a clear pathway to sustainable growth, forecasting over $10 million in free cash flow (FCF) by FY26, $20 million in FCF, and an 8% ROCE by FY27. These targets are underpinned by disciplined cost management, investment in innovation, and capital raised to bolster liquidity. Modern processing facilities and expanded banking facilities further support the company’s ability to scale operations and drive efficiencies.
AVG’s consumer-led strategy, introduced five years ago, has been instrumental in delivering 4% annual revenue growth, increasing branded contributions from 50% to 78%, and driving 35% of margin from new products. The company has established itself as a leader in disruptive innovation within the wine industry, particularly in the high-growth no-and-low alcohol segment, positioning it for future category leadership and premiumisation. Looking ahead, AVG is focused on expanding its presence in core markets while accelerating growth in new geographies, including China, the broader Asian market, and the Americas. The company plans to deploy targeted brands and innovations to scale its premium portfolio, attract the next generation of wine consumers, and strengthen its competitive positioning. Its industry-leading ESG framework, evidenced by its B Corp Certification, also provides a significant point of differentiation in a competitive global market.
AVG remains committed to shareholder value creation, supported by a talented management team and a sound strategic framework. With a focus on unlocking new channels, optimizing cost structures, and leveraging its global export capabilities, AVG is well-positioned to deliver sustainable free cash flow growth and returns on capital. By FY27, the company aims to achieve transformative outcomes, restoring shareholder confidence and driving long-term value.
Source: Company’s Report
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