3 small cap shares with enormous potential

ELMO Software Ltd (ASX:ELO) shares are one of three in the small cap space worth taking a closer look at today…

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At the small end of the Australian share market I think there are a great number of shares with solid growth potential.

Three which could have more than most are listed below. Here's why I would put them on my watchlist today:

ELMO Software Ltd (ASX: ELO)

Since listing on the ASX this cloud-based talent management software solutions provider has smashed its prospectus forecasts and the market's expectations. ELMO most recently delivered pro forma half-year EBITDA of $1.2 million on revenues of $10.6 million. This was an impressive 151% and 36% increase, respectively, on the prior corresponding period. Thanks to the strong demand for its products and the acquisition of remuneration software platform provider Pivot, I expect its full-year growth to be even more impressive.

Swift Networks Group Ltd (ASX: SW1)

This entertainment and telecommunication services company provides fully integrated solutions for the resources, hospitality, lifestyle village, and aged care accommodation sectors. These solutions include the entertainment platforms that readers will have no doubt used in hotel rooms in the past. This morning Swift Networks announced that it has secured a content agreement with China's Future TV. As the only provider of Future TV in Australia, this is expected to be a major selling point in the hospitality and student accommodation sectors.

Zenitas Healthcare Ltd (ASX: ZNT)

Zenitas is a growing home care and health services company which listed on the ASX last year. With the National Healthcare Reform aiming to push the burden of healthcare services from hospitals into primary care, I believe Zenitas is in a great position to profit. This was evident in its recent half-year results when it delivered pro forma net revenue of $34.8 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $5 million. This was a 53% and 51.5% increase, respectively, on the prior corresponding period.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO. The Motley Fool Australia has recommended Zenitas Healthcare 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 Scott Phillips.

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