Our local dentist 1300SMILES reported their full year result last Friday.
Profit increased by 3.1% while revenue decreased by 1.3%.
Given the recent changes to the dental industry the result is extraordinary.
With the government terminating the Chronic Disease Dental Scheme (CDDS) in November 2012 many practices have seen a large slow down in their work and accordingly revenue.
1300SMILES were quick to react to the issue with their one dollar per day Dental Care Plan, which has been an outstanding success.
A poor result could easily been blamed on the government but the team at 1300SMILES care more about growth and shareholders to let that happen.
During the last half year they have also pressed forward to make sure that 1300SMILES has a national platform with the acquisition of a large dental practice in Adelaide.
Full dividend for the year was $0.185 per share fully franked which is up 3.9% for the year providing a gross yield of 4.00.
The share price is currently at $6.50 up 8% from the closing price on the 30/06/2012.
With the dental industry currently going through a period of disruption, 1300SMILES have proven that their model works.
The size of the company allows them to spread their risk through offering many different types of services and not being reliant on CDDS like many practices.
It also allows them the ability to quickly react to changes in the industry to maintain market share.
I expect 1300SMILES to increase market share in the coming years
We continue to be invested in this company.
For more information on 1300SMILES please contact us on 07 4771 4577.