Dental group has something to smile about
THE team at under siege Gold Coast dental group Smiles Inclusive finally have something to grin about after lender NAB agreed to waive any breaches of its debt agreement.
Shareholders reacted positively to the news, sending securities 74 per cent, or 10¢, higher to reach 23.5¢ in early trading before coming back down to close 3.5¢, or 26 per cent, higher at 17¢.
Last week the company requested a trading halt after shares plunged 52 per cent in a single day to fall as low as 10¢.
Smiles had earlier said it was in danger of breaching its agreement with NAB, with which it has a $36-million finance facility, and the bank had not provided a waiver to its covenants.
Yesterday the company said it has now received a waiver for any historic breaches of its covenants.
“The company’s leadership team is working cooperatively with its senior lender to manage future covenant compliance including an independent review to ensure that it complies with all covenant testing going forward as operational performance improves,” Smiles said in an ASX statement.
The company also said that Tony McCormack, previously announced as taking on the role of COO after founding CEO Mike Timoney stood down, has stepped into the CEO role on an initial term of two years.
Mr McCormack has been with the company for just three months.
Smiles said he has prepared a plan with a focus on improving the performance of the company and its 56 dental practices.
His remuneration has been set at $285,000 per year inclusive of superannuation.
Smiles released its half-year results on Thursday night last week, reporting an after-tax loss of $1.59 million on practice revenue of $16.1 million.