2012 Annual Report

THE FACTS

  •  70% ownership by Abano (100% July 2012)
  • Growth strategy
  • 53 practices across Australia
  • 460 staff including 179 clinicians

THE YEAR IN REVIEW

Dental Partners has demonstrated strong and profitable growth over the past four years, to the point that it is now one of Australia’s largest dental consolidators and a significant revenue and earnings generator for Abano.

There was a definite slowdown in the Australian economy in the past twelve months, which had a small impact on the business.  However, overall, the business provided good revenue growth, and benefited from the addition of new acquisitions on a relatively fixed management and support infrastructure.

FY12 Highlights

  • Continued with accelerated acquisition programme and acquired 17 practices generating nearly A$30 million in additional annualised gross revenues
  • Invested in staff with a well-received Practice Managers’ Conference and a Dentist
  • Conference during the year
  • Starting to see benefits being driven by the scale of the network
  • Improving margins as scale of the network allows for increased negotiation on consumable pricing.

LOOKING FORWARD

The business will continue to grow and capitalise on its increasing size and strength.  The Australian dental market is worth over A$4.5 billion and corporate consolidators currently hold under 7% market share.

The target practice is high quality, sole or small group owner/dentist businesses, and Dental Partners’ growing reputation is key in successfully meeting acquisition targets.  It now has a proven track record and is becoming the preferred corporate choice for many dentists.

Practices which join the Dental Partners network retain their individual identity and brand.  Once the network has reached the appropriate size and scale, the marketing strategy and branding options will be reviewed.

Goals FY13

  • Increase margins and EBITDA performance through reducing consumable costs and standardising laboratory use
  • Maximise local marketing to improve same store revenue
  • Improve the effectiveness of  head office support to individual practices
  • Continue to invest in the Dental Partners culture and people
  • Maintain an acquisition growth rate of more than 20 standard practices per year.