Pacific Smiles Group - FY 2024 Preliminary Final Report - 27 August 2024
PACIFIC SMILES GROUP LIMITED (PSQ) Share Update August 2024 Tuesday 27th
Pacific Smiles Group Reports Significant Profit Increase in FY 2024
Pacific Smiles Group Limited (ASX: PSQ) has announced a substantial increase in profit for the financial year ended 30 June 2024, reflecting strong operational performance and strategic growth initiatives.
Instant Summary:
- Revenue from ordinary activities increased by 8.7% to $179.8 million.
- Profit from ordinary activities after tax surged by 232.1% to $8.0 million.
- Underlying profit from ordinary activities after tax increased by 103.9% to $8.5 million.
- Final dividend of 3.25 cents per share, fully franked, proposed.
- Net tangible assets per ordinary security improved from -15.52 cents to -9.26 cents.
Financial Performance
Pacific Smiles Group Limited reported a significant increase in revenue and profit for the financial year ended 30 June 2024. Revenue from ordinary activities rose by 8.7% to $179.8 million, up from $165.3 million in the previous year. This growth was driven by increased patient volumes and a well-managed cost base.
Profit from ordinary activities after tax surged by 232.1% to $8.0 million, compared to $2.4 million in FY 2023. The underlying profit from ordinary activities after tax also saw a substantial increase of 103.9%, reaching $8.5 million.
Operational Highlights
Pacific Smiles continued to invest in the growth and utilization of its dental centers. The company focused on engaging new practitioners and attracting new patients through marketing initiatives, including above-the-line campaigns. Operational efficiency enhancements aimed at improving service levels and patient experience were also implemented.
The company faced some disruptions during the year, including a proposal from Genesis Capital Manager I Pty Ltd to acquire 100% of the shares in Pacific Smiles. This led to a thorough process to determine the best interests of shareholders, culminating in a binding proposal from NDC BidCo Pty Ltd, which was ultimately not approved by the requisite majorities of shareholders.
Dividend and Net Tangible Assets
Pacific Smiles has proposed a final dividend of 3.25 cents per share, fully franked, to be paid on 10 October 2024. This represents an increase from the previous year's final dividend of 2.27 cents per share. The net tangible assets per ordinary security improved from -15.52 cents to -9.26 cents, reflecting the company's strong financial performance.
Future Outlook
Looking ahead, Pacific Smiles is optimistic about its growth prospects. The company plans to leverage its existing capacity, focus on same-center growth, and optimize its network. Strategic partnerships with health insurance providers like nib and HBF are expected to support continued growth in patient volumes and revenue.
The significant increase in profit and revenue reflects Pacific Smiles' successful strategic initiatives and operational efficiencies. The proposed dividend increase is likely to positively impact investor sentiment. However, the rejection of the acquisition proposal may introduce some uncertainty in the short term.
Investor Reaction:
Analysts are likely to view the substantial profit increase and revenue growth positively. The proposed dividend increase is expected to be well-received by investors. However, the rejection of the acquisition proposal may lead to mixed reactions, with some investors potentially concerned about future growth strategies.
Conclusion:
Investors should monitor Pacific Smiles' strategic initiatives and operational performance in the coming months. The company's focus on growth and efficiency, coupled with strong financial results, positions it well for future success. Investors are encouraged to review the final dividend announcement and consider the potential long-term impacts on their portfolios.