1300SMILES SPARKLES ON THE ASX
19 August 2015,
DENTAL business 1300SMILES (ASX: ONT) has reported a sparkling full year profit result.
The company received a net profit after tax of $6.6 million, an increase of 32 per cent on the prior corresponding period. Statutory revenue was up 15 per cent to $36.6 million.
Managing director of the Townsville headquartered business, Daryl Holmes, says the $1-a-day Dental Care Plan and new financing options for more expensive treatments were attracting patients.
He was especially proud of the company's winning dividend streak.
Earnings per share saw an increase of 32 per cent to 27.8c. The final dividend of 10.2c per share set new records as the largest single dividend ever paid and largest full year dividend at 19.2c, also up 32 per cent on the previous year.
"1300SMILES has delivered an uninterrupted stream of twenty-two fully franked dividends in a row since listing in 2005," says Holmes.
He admits the dental industry is 'challenged', strained by a continuing oversupply of graduate dentists and government being unclear on where dental fits into the healthcare system and how it should be funded.
"A long-time advisor of mine always tells me I should be happy when things are hard though, because if it were easy, everyone would be doing it," says Holmes.
"From where I sit, ours will remain a challenging industry for the foreseeable future.
"Our success over the years has come from our ability to deliver creative solutions to the delivery of dental care in Australia."
The company has sites in New South Wales, South Australia and all of Queensland's ten major population centres.
Holmes says he is focused on continuing to move into greenfield regions and acquiring other healthy dental businesses.
ONT's share price rose to $7.09 on the profit news, up from $6.72.