1300SMILES (ONT)

By Jason Fittler

Once again ONT produces another good result.

With revenue up 28.4%, net profit after tax up 20%, earnings per share up 10.1% and most importantly in these markets the dividend up 14.8% to 17.8 cents per share.

If we focus on the dividend for just a moment, for those who purchased this company in the float at $0.80 your annual return on the capital invested is 22.25% per annum at present.

We also note from this report that the cash flow from operations is also up 55.8% and cash reserves are at their highest level of $5.9 million.

Since listing, the only year which dividends when down were in 2007, every other year we have see a steady increase in dividends and price.

This company has shown what can be achieved by a well grounded CEO and MD. They have continued to produce results and purchase new practices without blowing out their gearing levels and by making sure each acquisition increased earnings.

ONT is the largest provider of dental services in Queensland and has the financial backing and systems in place to continue to grow. The company has continued to outperform the ASX 200 since listing in 2005 even through the GFC.

Our office assisted in floating this local company and we could not be happier with the return we have seen.

This is a great local company which has shown you do not need to be based in a major capital city to perform well.

It would be worth your while to take a look at the annual return and look to add some ONT shares to your portfolio.

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