2012 Annual Report

THE FACTS

  • 100% ownership by Bay International  - 50% ownership by Abano; 50% by the  original founders of Bay Audiology
  • Investment strategy
  • 19 stores across South East Asia 
  • 82 staff including 40 clinicians

THE YEAR IN REVIEW

The Asian audiology network is still in its infancy.  The audiology market in Asia is still under-developed compared to many other countries, and Bay Audio is taking a leadership position by introducing its retail focused, customer-centric business model.

In FY12, the emphasis was on developing the infrastructure of the business and upskilling sales staff. The Taiwan stores, in particular, showed a pleasing improvement with growth in both value and volumes of sales. A new relationship was negotiated with MedRx, a leading provider of hearing diagnostics equipment, and Bay Audio is now their exclusive distributor in Taiwan. 

In our other Asian markets, Malaysia is also performing well, however our three stores in Hong Kong and Singapore have underperformed against expectations.  In part, this is due to the lack of size in these markets and escalating rents in Hong Kong and in Singapore, which led to the closure of one store in each of these countries during FY12. We are currently looking at other options for our retail models in these markets.

FY12 Highlights

  • Increase in sales volumes and value in Taiwan
  • Creation and rollout of a consultative sales training programme and up-skilling of customer service staff
  • Investment into IT infrastructure and people development.

LOOKING FORWARD

Bay Audio Asia is still in a development phase and we will continue to invest in the business to ensure a solid business platform is in place to drive future growth. In FY13, the focus will be on maximising the potential of existing stores, and increasing sales. 

Goals FY13

  • Improve lead generation from touch screen tests by sales and clinical staff
  • Increase clinician and sales staff training with respect to client conversion and closing sales
  • Explore other opportunities to increase the network’s reach via increased mobile screening and strategic partnerships with retail partners
  • Continue to develop talent within the group and to reward achievement through recognition and reward programmes
  • Establish country by country programmes to drive all to positive EBITDA in three years’ time.