IHL Enters Exclusive Supply Agreement with Corporate Dentist 1300 Smiles

On 23 January 2019, Impression Healthcare Limited (ASX: IHL) signed an exclusive supply agreement with 1300 SMILES Limited (ASX: ONT), a leading dental group with a strong presence in Queensland.

As per the agreement, from February, all the custom-fitted mouthguards manufactured by IHL will be supplied to thirty 1300 SMILES dental practices. The new partnership between IHL and ONT will help IHL in expanding its B2B preferred practitioner network with another significant corporate dentist.

Based on the agreement, the first exclusive B2B supply will be for the initial three months which will start in February and will coincide with the start of the sports season in Australia. The three months period will also come across the NRL and AFL seasons. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

With this agreement, both the partners will very soon launch a marketing strategy for the promotion of the Gameday Mouthguard of IHL through the Australian-centric sports brand ambassador of the company on social media. Through this, they have a target to reach out to 180 million followers on social media.

With the upcoming NRL season and through the brand ambassador of the IHL, IHL will try to drive traffic of the preferred practioners network in Queensland which is a zone of the majority of dental practices. Queensland also reports a strong NRL following will help in creating brand awareness amongst the practioners and the customers.

The manufacturing of all the custom mouthguard will be mainly during the busiest period of the sports season. Both the parties at present will be entering into the negotiation phase for supplying a wide range of dental products which also includes the Knight Guard, and the Sleep Guardian products which is used for bruxism, snoring and mild to moderate sleep apnoea, etc.

The official listing of ONT on ASX is 11 March 2005 where the overall performance of ONT remains 134.08%. In 10 years, ONT’s performance was 140.38%. ONT’s one-year performance is -3.85%.

As per the annual report of ONT for FY2018 ending on 30 June 2018, the company’s revenue from the ordinary activities increased by 8.5% as compared to the previous corresponding period. The revenue from the ordinary operations of the company was $39.082 million. ONT made a net profit of 7.633 which is 5% above its previous corresponding period. The total amount for dividend announced for FY2018 was $2,842,000.

The balance sheet of ONT appears healthy with a robust net asset base and lower debt-equity ratio indicating a stable financial position of the company. However, the company might struggle meeting the working capital need and to clear the short-term debt based on the status of current asset and current liabilities. By the closure of FY2018, ONT has a cash and cash equivalent of $2.296 million.

The share of ONT traded last on 22 January 2018 at A$6.25 with the market capitalization of A$147.99 million and PE ratio 19.410x.


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