Show me a company which provides consistent gains and I will invest every day of the week. Once again 1300SMILES has done just that in a time which the economy is struggling, the government wrestling with huge debt and companies across Australia are downsizing.

Their results showed that revenue from ordinary activities stayed the same. This is important as growth came of being innovative and agile. Instead of paying too much for acquisitions and buying revenue the company focused on improving efficiencies and fully utilising current resources.

Net profit was up 16%, we all know net profit is more important than revenue. This has flowed through to dividends which were increased to $0.115 for the half year bring the yearly dividend to $0.225 or 4.5% gross yield based on the average price of $7.00 for the year.

Some of the key drivers of their result were the upgrade of corporate management software, consolidation of two practices and sale of a practice which is underperforming.

From day one 1300SMILES has only acquired practices which make a contribution to the bottom line and ensured that they run efficiently. It has been the regional practises which are providing the best efficiency and has been the main focus of acquisitions for the company over the past years. More acquisitions are expect but only when they make sense.  

Since the results have been the released the stock has been trading around $7.20 and as high as $7.30. This is up from the lows over the past year of $6.60. As you can see from the below chart 1300SMILES has outperformed the ASX 200 over the last financial year. With the Price Earnings ratio sitting at 22 we expect that there is more upside in the stock from here. The company highest price this year was $8.47.