Dental group hungry to grow
TOWNSVILLE- based dental group 1300SMILES is on the acquisition trail again as revenue growth falters during what it says has been a period of “consumer distress”.
The company is buying the Bella Dental practice at Ingham, which follows recent acquisitions of practices at Gladstone, Maleny and Roma in Queensland and, from midyear, practices at Chatswood and Bathurst in NSW.
Also, two non- executive director appointments have been made with the addition of business woman Evonne Collier and physiotherapist Jason Smith to the board.
1300SMILES managing director Daryl Holmes told the company’s annual meeting “consumer distress at the abysmal state of governments” at the state and federal level as well as limited growth in the dental industry overall were factors in the company’s flat revenue results for 2016- 17.
Over- the- counter revenue dipped to $ 51 million, compared with $ 51.4 million in 2015- 16, while revenue excluding cash retained by self- employed dentists was $ 36.2 million, down from $ 36.5 million.
The company resisted making acquisitions during the fi- nancial year but Dr Holmes said better opportunities had r e c e n t l y emerged.
A c q u i s i - tions had to show immediate increases to earnings and earnings per share.
“For a spell there was simply too few potential acquisitions which met our standards,” Dr Holmes said.
“Starting late in the 2017 financial year and continuing to the present, circumstances have delivered a range of far better opportunities.”
Sydney- based Ms Collier is a leader in business scale- up and transformation and has worked with major companies in the consumer goods, health, pharmaceutical, entertainment and technology sectors.
Melbourne- based Mr Smith is founder and executive chairman of Back In Motion Health Group and author of bestseller Get Yourself Back In Motion – A Physiotherapist’s Secrets to Pain Relief and Optimal Health.
Dr Glen Richards, founder of Greencross Vets, has stepped down from the board.
Despite flat revenue and profit, dividend per share increased 2.2 per cent to 23c. Its share price yesterday was trading around $ 6.70, valuing the company at $ 158.6 million.
Business Daily: p38- 39