Gaining a stronger position in the market and growing economies of scale?
Remember - they went through pretty "interesting times" due to some quite disruptive cornerstone shareholders. I hope the board has this coming year more time to focus on growth than on defending the company from predators ...
I think their business model has merit.
Discl: small holding.
Where would you see the growth in economies of scale coming from BP? Biggest costs must be salaries/wages and rentals on the 100+ premises. Equipment and dental supplies offer some scope?
Share price up from a year ago ...market rerating continues ...sentiment is good
They acquired 10 new practices this half... 50/50 between NZ and AUS with underlying earnings moving on up.
Influx of cash from the August cap raise ( 20% dilution ) was barely touched in the 1H so we are expecting plenty more acquisitions this half.
With the focus being on Maven in AUS... the benefit of the cap raising has not yet come to life.
They acquired 10 new practices this half... 50/50 between NZ and AUS with underlying earnings moving on up.
Influx of cash from the August cap raise ( 20% dilution ) was barely touched in the 1H so we are expecting plenty more acquisitions this half.
With the focus being on Maven in AUS... the benefit of the cap raising has not yet come to life.
I think they’ve spent most of Cap raise money
Started year off with $7m cash and operations generated $12m which gives $19m. Acquisitions/ capex etc used up $29m (sub total -$10m).
They raised $34m and reduced debt by $11m this and paid out $4m in divies (total these $19m)
After all this $9m left in the bank’s at November
As said before expecting $17m from the sale of that thing they didn’t want which would give them about $26m ...,plus a bit generated this half .....not much more than they spent on acquiriribg practices and capex in first half
(From Company Interim;Accounts)
”When investors are euphoric, they are incapable of recognising euphoria itself “
Where would you see the growth in economies of scale coming from BP? Biggest costs must be salaries/wages and rentals on the 100+ premises. Equipment and dental supplies offer some scope?
equipment and dental supply - for sure
centralized IT system,
centralized training,
less (per head) admin cost with centralized HR
higher staff flexibility (they can hire their own locums)
centralized marketing
...
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"Prediction is very difficult, especially about the future" (Niels Bohr)
equipment and dental supply - for sure
centralized IT system,
centralized training,
less (per head) admin cost with centralized HR
higher staff flexibility (they can hire their own locums)
centralized marketing
...
Agreed, BP, although I would think that most of these benefits are already being realised, to some degree. A matter of how much more there is to be gained.
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