3 Small Caps Geared for a Big 2025

The small caps space is often where some of the most exciting growth stories begin. These companies might fly under the radar compared to larger names, but many are quietly building strong foundations for long-term success. We’ve been keeping a close eye on a few standouts small caps that are showing impressive momentum, whether it’s through operational turnarounds, smart acquisitions, or steady financial improvement. Right now, Kingsgate Consolidated, Centrepoint Alliance, and Maxi PARTS are three names that have caught our attention. They each bring something unique to the table and are backed by solid fundamentals and clear growth strategies. Let’s take a look at why these three small caps are firmly on our radar for the road ahead. Kingsgate Consolidated Limited (ASX: KCN) – 14.29% Gain Over the Past 12 Months Centrepoint Alliance Limited (ASX: CAF) – Up +20% TTM – Dividend Yield: 8.33% (100% Franked) MaxiPARTS Limited (ASX: MXI) – Up +11.70% YTD – Dividend Yield: 2.68% (100% Franked) Kingsgate Consolidated Limited (ASX: KCN) Source: KCN, weekly chart (2025) Kingsgate Consolidated is on our radar right now because of its strong operational turnaround and the impressive financial results coming out of its Chatree Gold Mine in Thailand. The March quarter showed a solid 15% rise in gold production, marking four quarters of steady growth, alongside a significant reduction in costs. With All-In Sustaining Costs dropping to around US$1,840 per ounce and gold prices remaining robust near US$2,875 per ounce, Kingsgate has boosted its margin to over US$1,000 per ounce — more than double the margin from the previous quarter. On top of this, their cash and bullion position improved substantially, which gives the company flexibility and options as they move forward. Operationally, the mine is running above capacity with strong recovery rates, and exploration efforts are uncovering promising new resources, especially in the Southeast Complex. Although a recent minor slip in the A-West ramp has led to a downward revision in full-year production guidance, management’s swift response to the situation and updated mine plan shows they are actively managing risks. This combination of strong production, cost discipline, and active exploration makes Kingsgate a compelling story. What really puts Kingsgate in the spotlight now is management’s confidence in the company’s value, demonstrated by their recent share buy-back program. This move suggests they believe the stock is undervalued given the improving fundamentals and cash flow potential. With a healthier balance sheet, strong margins, and a clear strategy to grow through both operational efficiency and resource expansion, Kingsgate offers what we see as attractive long-term upside. That’s why it’s firmly on our radar today. Centrepoint Alliance Limited (ASX: CAF) Source: CAF, weekly chart (2025) We believe Centrepoint Alliance Limited is a stock worth considering, thanks to its strong performance and clear growth trajectory. Centrepoint operates as a financial advice licensee, providing support and compliance services to a network of authorised representatives and self-licensed firms across Australia. Its business model focuses on attracting and retaining financial advisers by offering compliance, technology, and administrative services, enabling advisers to focus on client advice while benefiting from scalable support. In the first half of FY25, the company reported gross revenue of USD 159.7 million, a solid 14% increase compared to the same period last year. Even more impressive was the 20% rise in net revenue, reaching USD 20.1 million, which points to improving margins and better quality of earnings. EBITDA also showed healthy growth, climbing 29% to USD 5.3 million, driven by both the full contribution from the Financial Advice Matters (FAM) acquisition and continued organic adviser fee growth. Profit after tax reached USD 4.6 million, more than doubling compared to last year, supported by a contingent consideration release related to FAM. Operationally, Centrepoint continues to strengthen its network with 556 authorised representatives, up by seven advisers in H1. This ranks the company third in net adviser growth across the market. Adviser satisfaction is a standout with a Licensee Net Promoter Score hitting +47 overall and +52 among licensed advisers. This is a key factor that supports retention and new adviser recruitment. The successful integration of FAM has significantly increased EBITDA for that segment, rising by 45%, while the recent launch of the IconiQ investment platform adds an exciting new growth avenue. This platform, featuring Investor Directed Portfolio Services and Super Wraps, aims to improve adviser experience and attract client inflows. Additionally, the April 2025 acquisition of Brighter Super’s advice book, expected to generate around USD 1 million in annual revenue, further expands Centrepoint’s salaried advice channel and demonstrates the company’s ability to secure strategic partnerships. Management’s confidence shines through with its reaffirmed full-year EBITDA guidance of USD 10.25 million to USD 10.5 million, despite ongoing investments in growth initiatives. This balance between investing for the future and maintaining profitability is encouraging. Given the company’s strong financials, growing adviser network, innovative technology rollout, and disciplined M&A approach, we see multiple levers for growth. The broader financial advice market in Australia is also supportive, with rising demand for professional advice and regulatory changes enhancing industry quality. Overall, Centrepoint Alliance’s combination of solid results, strategic acquisitions, and innovative platform development positions it as a long-term buy with meaningful upside potential. MaxiPARTS Limited (ASX: MXI) Source: MXI, weekly chart (2025) MaxiPARTS is a prominent supplier in Australia’s commercial vehicle parts and workshop consumables market. The business blends a steady core commercial parts division with a fast-growing segment through Förch Australia, which offers tools, chemicals, and consumables to workshops across the country. The company’s half-year results to December 2024 demonstrate strong momentum. Revenue increased 22.6% to $136.9 million, while EBITDA grew even faster by 28.6%, reaching $13.7 million. This droves the EBITDA margin up by 40 basis points to a solid 10%. These numbers highlight that MaxiPARTS isn’t just growing revenue but also improving profitability and operational efficiency. Net profit after tax from continued operations rose 54.1% to $4.3 million, supporting a 35.3% increase in earnings per share to 7.62 cents. Reflecting this performance, the company declared a fully franked interim dividend of 3.05 cents per share, up from 2.57 cents previously. Operating cash flow was strong too, climbing to $12 million, with a cash conversion rate of 88%. A key driver of growth is the Förch Australia segment, which delivered 16% like-for-like revenue growth and achieved operating leverage with approximately 13% EBITDA margin. The launch of a new B2C e-commerce platform for Förch is also helping open fresh sales channels beyond traditional commercial customers. MaxiPARTS is progressing well on integrating recent acquisitions, particularly in IT and business systems, which is crucial for unlocking synergies and enhancing future growth. While the East Coast of Australia is facing some transport activity softness and pricing pressure, the West Coast remains robust, and the company’s balanced approach positions it to navigate these regional dynamics effectively. Management has set a medium-term target of growing EBITDA margins into the low double digits, underlining their focus on profitable growth. Given the company’s strong cash flow, growing dividend, and market position in a fragmented industry, MaxiPARTS offers an appealing combination of growth potential and income generation. In short, MaxiPARTS’ strong financial performance, strategic growth initiatives, and operational improvements make it a stock well worth considering for exposure to Australia’s automotive aftermarket sector.