This morning 1300 Smiles Limited (ASX: ONT) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half.
- Revenue of $30 million, up 7.1%
- Revenue less amount retained by self-employed dentists $20.5 million
- EBITDA $7.1 million, up 5.7%
- Net profit of $4.1 million, up 4.3%
- Earnings per share of 17.3 cents
- Fully franked dividend of 12.5 cents per share, up 4.2%
- Bank debt of $4.4 million
This is a typically solid result of mid-single-digit growth from this dental business aggregator that has an acquisitive and organic growth strategy.
The benefits of having a founder with a heavy shareholding running the business means the group is not likely to stretch its balance sheet with too much debt, or to chase growth for growth’s sake.
This founder-led long-term approach is reflected by a share price that has grown from $1 in March 2005 to $6.12 today in addition to paying some consistent dividends along the way.
The company is Queensland focused and flagged that 7 of its 32 dental practices are in the flood hit town of Townsville, although management affirmed that this will only prove a minor hiccup if anything.
The CEO also flagged that he expects the business will soon announce the acquisition of several larger dental practices to add $6.5 million in additional revenue and a “contribution to EBITDA commensurate with the expected increase to revenue”.
The business has now grown into a market value around $132 million so is still a small cap, which means for any interested investors it has plenty of room to grow.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia has recommended 1300SMILES Limited and SDI Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.