Smiles in cashflow debacle

EMBATTLED Gold Coast dental group Smiles Inclusive has admitted to an embarrassing blunder in its most recent cashflow report by overstating its financial health by $1.1 million.

The company, which has been suspended from the ASX since March after failing to lodge its half-yearly accounts, lodged its March cashflow report on June 1 showing positive cashflow of $500,000.

However, on Monday the company released a revised cashflow report showing for the March quarter it actually had negative cashflow of $614,000 – a difference of more than $1.1 million.

The company said the mistakes were a result of “transposition and flow through errors” made when the original reports were lodged.

The Bulletin has repeatedly asked new CEO Michelle Aqualina for an interview but no response has been received.

Western Australia-based dentist Dr John Camacho, who resigned from the company in April citing incompetence and false promises by the company, said a “true reflection” of the company’s financial situation was becoming clearer. “It is a delta of $1.1 million,” he said.

Dr Camacho said the board had members, such as Peter Evans, an ex-director of Morgans, with considerable experience in the financial field.

“I don’t see how the board can sign off on something that is so fundamentally incorrect.”

On May 15 Smiles said it had reopened all practices closed because of the COVID-19 pandemic after the lifting of restrictions. Since listing, Smiles has been bedevilled by problems including profit downgrades, a falling share price, boardroom infighting, legal problems and the threat of class action lawsuits.