Highlights and Key Events
- Acquisition by Abano of outstanding 30% shareholding, taking ownership to 100%
- Acquisition of nine practices providing $14.7 million in additional annualised gross revenues
- Changes in senior management to reflect the growing maturity of the business
- Appointment of Dr Tony Bubear as chair of the clinical advisory committee and appointment of representatives from each State
Since 2008, the business has grown from an idea to a professional and highly regarded organisation generating annualised revenues of over A$100 million with 62 clinics and 446 staff in six States and the Capital Territory making it the second largest corporate dental group in Australia.
Our size and scale makes it an appropriate time to restructure and strengthen our leadership team. In February 2013, Malcolm Lean, Dental Partner’s CFO, was appointed general manager and we will be recruiting a new CFO as well as senior executives for HR and marketing and adding additional resource to our IT function. Alan Clarke has been acting as executive chairman for the past six months as we transition to the new management structure.
Dental industry revenue in Australia is expected to increase in line with a growing and ageing population, rising household incomes and a lift in government subsidies paid for dental services provided to children. Reports estimate that over 60% of dental visits are covered by insurance arrangements and the proportion of the Australian population covered by private healthcare is estimated to have steadily increased since the early 2000s. More targeted publicly funded dental programmes are being introduced to replace the previous Medicare Chronic Disease Dental scheme. The closure of this scheme has had limited impact on Dental Partners.
While the business continues to generate growing returns, the softer Australian economy is having some impact as patients defer appointments or increase the amount of time between appointments.
Focus for FY14
- Continue to focus on acquisition growth as well as enhancing capacity in existing practices
- Assess the opportunities and benefits of a national branding strategy
- Strengthen the leadership team
- Continue to work in partnership with our dentists through the clinical advisory committee
- Focus on material and laboratory cost efficiencies