PACIFIC SMILES GROUP

As per the Australian Financial Review of the 31st March 2020, Pacific Smiles Group has temporarily shut 76 of 93 surgeries and may close the remainder.  The Pacific Smiles Group shares recently traded at 74 cents which is down from $2.05 on the 20th February 2020.

The Townsville based 1300 Smiles advised the ASX that it had paid 13.25 cents per dollar share dividend on 27 March 2020 as scheduled.

1300 Smiles was extremely fortunate, in Synstrat’s view, to have been outbid by a combination of BGH Capital and Canada’s Ontario Teachers Plan when it attempted to buy out New Zealand’s Abano Healthcare which uses the Maven dental surgeries brand in Australia.  That deal was worth $278 million.  By good luck 1300 Smiles was outbid otherwise it might have found itself in significant trouble due to impact of the COVID-19 virus on dental practices.  As it is with a small group of practices which are arguably the best run of the corporates, it will remain in the healthiest condition of the corporates.

There is no further news on Smiles Inclusive Limited which remains suspended on the ASX waiting for its auditors to sign off the half yearly accounts.  We suspect that as in the previous reporting period when the audit sign off was also delayed that the auditors were having significant difficulty in reaching a state of confidence that the business remains a viable going concern.  We interpret the recent minor capital raising announced by Smiles Inclusive as being an attempt to sure up its balance sheet in order to get half yearly sign off.

That situation was before the COVID-19 dental close down emerged.

Best Wishes to all dentists,

Graham Middleton

​Services offered by Synstrat to dentists include practice valuation, practice accounting, strategic advice on practice acquisition, sale, partnership or associateship, financial planning including self-managed superannuation fund administration and advice and other services.