Vowing to look after themselves better in the wake of a pandemic, Australians are keenly focused on their personal health and wellness as evidenced by allied healthcare services provider Healthia (ASX: HLA) which is expected to report more than an 86% increase in earnings.
A market update was provided by Healthia which operates a network of podiatry, physiotherapy and optometry clinics nationally with the Company expected to report underlying revenue around $62 million. This would represent a 40% increase on the previous corresponding period but also a substantial increase in Healthia’s earnings.
“With strong organic growth during the period, and the completion of a number of strategic acquisitions over the last 12 months, including settlement of The Optical Company in November, we expect to see underlying EBITDA for the period ending 31 December 2020 in the range of $10.7 million to $11.7 million,” said Healthia CEO, Wesley Coote.
The significant increase has been driven by 14.5% organic growth across the Healthia Group while integration efficiencies continue to be realised from newly-acquired clinics entering the Healthia network as they gain access to support services and marketing.
Through CY 2020, Healthia increased its total network of businesses from 132 to 200 which included 41 optometry businesses, 13 podiatry clinics, 6 retail footwear stores and 7 physiotherapy clinics.
The addition of Healthia’s Eyes and Ears division has contributed to a significant increase to the Company’s EBITDA margins, increasing from 13% to more than 17%. This expansion into optometry which will service the 13.2 million Australians suffering from long-term eye conditions, follows a hugely successful business model established by Healthia’s senior management previously.
Prior to his appointment at Healthia, Coote was CFO at Greencross working alongside popular businessman Glen Richards who founded the animal health Group comprising Greencross Vets, Petbarn and City Farmers. Listed on the ASX at the time, Greencross subsequently was sold to a US private equity firm for $675m in February 2019. Coote and Richards linked up again to lead Healthia’s IPO in September 2019 when the Company had a network of just 102 clinics at the time of listing.
With integration into the Healthia network, Healthia’s podiatry clinics have access to the Company’s 3D-printed orthotics and retail footwear while the optometry division is supplied by Healthia-distributed frames.
Continued growth of Healthia’s network is expected over the next 12 months with the Company increasing their annual spend on acquisitions from $15m to $20m while also confirming their largest ever graduate intake with 60 new graduates to commence their careers at Healthia this month.
Healthia expects to release its audited results for the Half-Year on 25 February 2021.
Alongside his role as Chairman of Healthia, Richards starred on TV series Shark Tank where he guided Australian entrepreneurs to identify breakout business opportunities.
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