There are some ASX shares that are delivering ongoing growth year after year.
Businesses that continue to scale could be ones watch to keep an eye on because of how compounding works over time.
Investors may want to know about these two ASX shares that keep growing:
Pro Medicus Ltd (ASX: PME)
Pro Medicus describes itself as a leading medical imaging IT provider. It provides a full range of radiology IT software and services to hospitals, imaging centres and health care groups around the world.
The company just released its FY22 half-year result which showed that revenue rose 40.3% to $44.3 million. Net profit jumped 52.7% to $20.7 million and the interim dividend rose 42.9% to 10 cents per share.
It continues to win most of the major new contracts that are up for grabs. For example, it won a $40 million, 7-year contract from Novant Health – a community-based integrated delivery network that spans three US States.
Pro Medicus is making significant progress with all key implementations with previously won contracts such as the Intermountain one.
The reason for the big jump in the ASX share’s revenue and profit was the several older wins had come ‘on-stream’ towards the second half of FY21 such as Northwestern, NYU and Medstar.
But there could be more wins to come – management said that the pipeline remains strong with a “good spread” of opportunities in different markets, with many being cloud-based. Many are interested in more than one Visage software solution.
Australian Ethical Investment Limited (ASX: AEF)
Australian Ethical essentially describes itself as Australia’s original ethical fund manager, which started in 1986. The idea is to provide investors with investment products that align with their values whilst also providing competitive returns. Those investments are guided by the Australian Ethical Charter.
The company is experiencing ongoing demand for greener and ethically-focused investment strategies, both through the superannuation and non-superannuation investment options.
In the six months to December 2021, the ASX share almost an increase of funds under management (FUM) by close to $1 billion, rising to $6.94 billion. This included $0.6 billion of net flows and $0.27 billion of positive market movements.
FY21 underlying profit after tax grew 19% to $11.1 million. FY22 half-year profit is expected to be between $5 million to $5.5 million. The mid-point increase would be 8% year on year.
Australian Ethical said that it will continue to invest in its high-growth strategy given the positive momentum it’s experiencing and the scale of the opportunity ahead. It’s spending on its investment, sales and customer service teams and enhancing the product development and technology platforms.
The post 2 unstoppable ASX shares growing rapidly appeared first on The Motley Fool Australia.
Should you invest $1,000 in Pro Medicus right now?
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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pro Medicus wasn’t one of them.
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More reading
- Are ASX growth shares still worth holding in 2022?
- Leading broker says Pro Medicus (ASX:PME) share price is a buy
- 2 medical tech ASX shares for turbulent times
- 5 things to watch on the ASX 200 on Monday
- Green light, red light! Why did the Australian Ethical (ASX:AEF) share price plunge 13% today?
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Australian Ethical Investment Ltd. and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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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