5 ASX growth shares I would buy in FY 2018

The a2 Milk Company Ltd (Australia) (ASX: A2M) share price was a big mover in FY 2017. Will these five growth shares follow suit in FY 2018?

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During the last financial year a number of growth shares did what they do best and delivered outsized returns for shareholders.

Three standouts in my eyes were a2 Milk Company Ltd (Australia) (ASX: A2M), Big Un Ltd (ASX: BIG), and Webjet Limited (ASX: WEB). These three shares finished FY 2017 with share price gains of 129%, 843%, and 78%, respectively.

Now that we are in a new financial year, I thought I would take a look at a number of growth shares which I believe are positioned to outperform over the next 12 months.

Here are five to watch:

Appen Ltd (ASX: APX)

This fast-growing company provides data solutions and services to global technology companies and government agencies. Strong demand for its high quality data for machine learning-based product development means that this year the company expects to deliver EBITDA growth of between 40% and 50%. Due to the rise of artificial intelligence, I believe this demand could yet strengthen over the next 12 months.

ChimpChange Ltd (ASX: CCA)

This US-based digital banking company aims to disrupt the American banking system with its mobile platform. Targeting millennials and the underbanked, ChimpChange has been growing its user numbers at a very quick rate over the last 12 months and shows no signs of slowing. I expect the launch of revenue-generating features will result in strong top line growth in FY 2018.

GetSwift Ltd (ASX: GSW)

This delivery management software provider would have to be my pick of the lot. GetSwift aims to streamline a company's logistics through its innovative platform by optimising delivery routes, automating the dispatch process, and providing real-time tracking alerts. Impressively, the company now has clients in over 59 countries and 475 cities, and has achieved this without a salesforce.

Nextdc Ltd (ASX: NXT)

As businesses continue to migrate to the cloud, I believe this leading data centre operator will see demand for its services increase at a strong rate. All in all, I expect this to result in increasing levels of contracted utilisation and ultimately bumper profit growth as its business scales.

Xtek Ltd (ASX: XTE)

This exciting defence technology company is certainly one to watch in FY 2018. After all, it was recently named as the primary contractor in the $100 million LAND 129 Phase 4 program for the supply of drones to the Australian army. Following an oversubscribed placement, the company has almost a quarter of its market capitalisation in cash. With the company cash flow positive, these funds will be used for product commercialisation, development, and to allow it to pursue more and larger contracts in the future.

Motley Fool contributor James Mickleboro owns shares of Chimpchange, GetSwift Ltd, and NextDC. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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