2012 Annual Report

THE FACTS

  • 95% ownership by Bay International  - 50% ownership by Abano; 50% by the  original founders of Bay Audiology
  • Investment strategy
  • 34 stores across Australia  with a growing network of non-Bay Audio testing locations
  • 141 staff including 25 clinicians

THE YEAR IN REVIEW

Although the overall economic environment is challenging, Bay Audio still managed to continue growth by selling increased volumes of higher end devices.

A new leadership structure was put into place in Australia in FY12, and the benefits of this are now being realised. Comparative revenues were up over 10% compared to the prior year and trading performance is becoming more consistent across the network.

A number of system and operational enhancements were implemented in FY12, which aim to deliver improved efficiencies in store operations and back office administration.

Following the development of an iPad application for Bay’s unique touch screen technology, Bay Australia has been expanding its presence in non-store settings, such as pharmacies, resthomes and at large scale events. This is proving to be a worthwhile strategy with excellent usage and response rates from potential clients.

FY12 Highlights

  • Implementation of new leadership structure, including customer service and clinical leadership as well as a senior leadership team who are delivering the strategy to drive the business forward
  • Record breaking month for revenue achieved in May 2012
  • Execution of the new marketing strategy, including a revised retail campaign strategy.

LOOKING FORWARD

Bay Audio Australia remains focused on embedding a new operating structure and improving operating efficiencies. New greenfield developments have been deferred in the short term, while management focus on continuing to deliver same store growth across the existing network.

In the near future, there will be a population boom in 45-55 year old demographic, which is widely believed to be affected by noise induced hearing loss. Bay Audio is well positioned to be the provider of choice, through the provision of tangible benefits for customers in the form of complementary services and consumables.

Goals FY13

  • Improve the conversion rates of client leads from touch screen tests by clinical staff and increase  revenue growth
  • 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, such as Terry White pharmacy group
  • Continue to develop talent within the group and to reward achievement through recognition and reward programmes
  • Explore ongoing expansion opportunities once the existing network achieves breakeven at EBITDA within two years.