"1300SMILES is a company I expect to continue to perform long-term."
When you invest in a listed company you are in fact investing in the people who run the company.
The dental industry as of yesterday lost one billion in fees due to the Chronic Disease Dental Plan being axed by the government.
These fees make up 20% of the five billion dollar dental industry in Australia. This sort of loss of income is out of control of the CEO and MD of 1300SMILES but will however have an impact on the company’s performance.
In recent weeks we have seen the price pull back from $5.80 to $5.05.
The team at 1300SMILES set out to turn this crisis into a long-term positive for the company with the introduction of the “$1 dollar a day dental plan” which provides you with fix pricing on basic dental care.
It also allows you to obtain an interest free loan for the cost of larger dental work that you might need. This means that you no longer have to put up with the sore tooth until you can afford to get it fixed.
1300SMILES is very excited about this offer and has already experienced an astonishing take up rate for the “interest free treatment plan” with very limited marketing.
They expect that this will assist to grow the business further and help fill the gap for the closure of the Chronic Disease Dental Plan.
It is this sort of leadership and foresight that makes a good company, great.
1300SMILES had a solid performance for the 2012 year with an increase in revenue, profit and dividends.
1300SMILES is a company I expect to continue to perform long-term.