No images? Click here SMILES INCLUSIVE LIMITED HAS APPOINTED A DEPUTY CHIEF EXECUTIVE OFFICER – MICHELLE ACQUILINA AND A GENERAL MANAGER OPERATIONS – MARK O’BRIEN The company remains suspended from trading on the ASX, waiting for its auditors to sign off the half year accounts. We are reminded of Warren Buffet’s observation that “if you appoint new management to a poorly performing business, it’s usually the business which retains its reputation”! The new managers face a huge challenge. The impact of COVID-19 makes new listings of dental corporates on the Australian Securities Exchange highly unlikely; probably for several years. Coupled with the unacceptable performance of Smiles Inclusive Limited the huge correction in the share market means that investors are simply not going to be looking to subscribe to small dental listings. Nor for that matter listings of other personal service type businesses. We predict that new listings will dry up for several years. We also expect that the appetite of corporates buying dental practices is now quite constrained. The penetration of corporate dentistry into the Australian dental landscape is far less than that which occurred in North America. Given difficulties experienced by health funds with declining memberships and predictions of fund amalgamations becoming inevitable, coupled with rising premiums we predict that the percentage of Australians having extras cover in health funds will steadily decline unless there is some major tax initiative causing a turnabout. In our opinion this is unlikely to occur. Recently, I was talking to a client in a regional city who explained that their practice had successfully gotten rid of major health fund preferred providers and the practice was richer for having done so. Unlike a huge number of small business who basically had to shut up shop, dentistry will survive, albeit with difficulty. Best Wishes to all dentists, Graham Middleton The Synstrat Group are Australia's most experienced Dental practice business advisers, accountants, practice valuers and licensed financial advisers. The information contained herein is of a general nature and no specific action should be taken without individual advice. Synstrat Management Pty Ltd P. 03 9843 7777 ABN 57 006 295 325 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except wh ere the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |