The 1300 Smiles Limited (ASX: ONT) share price is currently trading 3.11% higher after the release of the company's most recent trading results today.
1300 Smiles owns and operates full-service dental facilities in New South Wales, South Australia and across 10 major population centres in Queensland.
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Trading update
Despite the coronavirus pandemic impacting its April and May profitability, the group delivered strong June results.
The group reported that its June 2020 revenue was up 18% compared with the same time last year (June 2019). Additionally, same-store sales increased by 20%. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 65% on the prior corresponding period (pcp). The group also reported its online booking platform saw a 216% increase in use on pcp.
1300 Smiles had net debt of $8.3 million as at the end of last month.
In the update, the group highlighted it benefitted from the reopening of dental clinics after restrictions went back down to level 1. Pleasingly, the strong results last month have continued this month. The group is still finalising its full year results, but reported its revenue was only down by 3%.
1300 Smiles managing director Dr Daryl Holmes said "these are truly amazing results that I am so excited and reassured by, after coming through the most challenging and extraordinary months… the ongoing out-performance continues to amaze our board and I."
Today's announcement follows an update on 6 April 2020. In April, the group had about 50% of its practices open throughout its network, in accordance with advice from the relevant authorities.
Across the pandemic, 1300 Smiles has been supported by its senior lender Commonwealth Bank of Australia (ASX: CBA). It had approximately $10 million in undrawn facilities, as per the April update.
About the 1300 Smiles share price
In its half yearly report released in February this year (before the full impact of the pandemic on operations), the company reported revenue and net profit after tax was up 14.5% and 6.8%, respectively.
However, the group's shares have since been impacted by the lockdown restrictions and are trading down 15.87% over the past year. The 1300 Smiles share price is currently sitting at $5.30 per share.
