The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may be having another day in the red, but that hasn't stopped a number of small cap shares from surging higher.
Three small caps that caught my eye with strong gains today are listed below. Here's why they are on the rise:
The AuMake International Ltd (ASX: AU8) share price has zoomed 12.5% higher to 22.5 cents after the daigou company released its latest quarterly results. For the three months ended June 30, the company generated sales of $7 million and gross profit of approximately $1.1 million. This was a 37% and 31% increase on the prior quarter. Investors appear pleased with this growth and the fact that costs have been reduced. In respect to the latter, management believes it will achieve total operational cost breakeven during the 2019 financial year. At the end of the quarter the company finished with cash at bank of $10.7 million and $3.6 million in inventory. I think it is a little soon to invest in AuMake, but it could be one for the watchlist.
The Empired Ltd (ASX: EPD) share price has pushed almost 3.5% higher to 56 cents following the release of its preliminary full-year results. The IT Services provider reported revenue of $174 million and underlying EBITDA of $17 million, which is a year-on-year increase of 4% and 10%. Pleasingly, management expects FY 2019 to be even stronger thanks to a good level of contracted work. It has provided guidance of double-digit revenue, EBITDA, NPAT, and EPS growth for FY 2019.
The Swift Networks Group Ltd (ASX: SW1) share price has raced 13% higher to 39 cents after announcing its preliminary full-year results. The telecommunications and content solutions provider expects to report FY 2018 revenue of $22.3 million, representing annual growth of 31%. Pleasingly, this has led to EBITDA of $2.7 million in FY 2018, up 170% on the prior year. Swift Networks finished the year with a cash balance of $3.2 million, up 43% year-on-year, and has repaid its $3 million debt facility with Bankwest.
