1300SMILES (ONT)

By Jason Fittler

1300SMILES our home-grown success story reported this week on their first half profits. 

Keeping in mind that their revenue was hit hard when the government scrapped the Critical Dental Care plan couple of years ago the results were welcome. 

Revenue up 19% and profit up 34% on last year coupled with the dividend for the half increased from $0.065 to $0.09 per share. The market reacted positively to the news with the share price jumping from $6.10 to $6.75 or 10.5% on the back of the release.

On a closer look over the counter sales were up 30%. Earnings per share up 33.6%. Cash flow from operations up 70%. All this with no increase in bank debt.

The year on year growth and zero bank debts places the company in a strong position for acquisitions as they become available. 

The growth can be attributed to:

  • organic growth in the current practices through the ability to accommodate more dentists,
  • the acquisition of BOH Dental in Brisbane
  • and the continuing success of the $1 a day Dental Care Plan which make their services more affordable.

1300SMILES has now been listed for 10 years. Investors in the initial IPO purchased the shares at $0.80 and have been paid $1.17 in fully franked dividends which grossed up is $1.67.

As well as this, the share price has increased around $5.95.

Combined, this is a total return of $7.62 per share or 950%.

With dividends, improving and revenue continuing to grow what will the next 10 years bring.

For more information about 1300SMILES (ONT) please contact us on 07 4771 4577.