The 1300 Smiles Limited (ASX: ONT) share price hit another record high today despite there being no news out of the company. At the time of writing, the 1300 Smiles share price is sitting 4.26% higher at $6.85, after being as high as $6.9 in intraday trading today.
The company has had a successful 2020, with its shares rebounding strongly from the COVID-19 market rout. The 1300 Smiles share price has gained more than 43% since its lows in early March.
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Bundaberg practice
One possible reason for the company's recent strong share price performance is its acquisition of a new practice in Bundaberg. On 24 November, the company expanded its footprint further into the Wide Bay region in Queensland. The new practice adds to its two existing Bundaberg practices.
Commenting at the time, 1300 Smiles managing director, Dr Daryl Holmes, said:
This is an exciting acquisition as we already have two well established practices in the area. It will ensure that we can service the Wide Bay area even further. We look forward to welcoming the team of dentists and support staff to 1300SMILES following completion.
Successful AGM
1300 Smiles also highlighted the company's strong revenue in the first quarter of 2021 at its annual general meeting (AGM) on 26 November. As such the health care share saw revenue increase by 16%.
Management also noted the strong recovery post COVID-19. Since the easing of restrictions in May, trading has been strong, driven in part by latent demand and new patients.
Also positive was the reduction in net debt. Despite the challenges of the pandemic, net debt reduced by 15% from $8.3 million to $7.1 million – a result of debt repayment. This leaves the company in a position to take advantage of future capital projects as they become available.
What now?
With the 1300 Smiles share price gaining 10% in the past year, the company has outlined a plan to continue its growth.
Management noted that profits would be increased by attracting more dentists to its existing facilities and expanding those facilities which are already at full capacity. Moreover, 13300 Smiles will place a priority on assisting dentists who already practice with the company to increase turnover and income.
Furthermore, 1300 Smiles suggested the need to establish new practices, both in areas of existing presence and into new regions.
