Preliminary Final Results Announcement
Sydney, Feb 29, 2016 AEST (ABN Newswire) - Traditional Therapy Clinic Ltd (
ASX:TTC), owner of the largest (by number) of health and wellness clinics throughout China, has today lodged its Appendix 4E (Preliminary Final Results) with the ASX for the period ended 31 December 2015, reporting a net profit after tax of A$17.127 million. The accounts upon which the Preliminary Final Results are based are currently being audited.
Highlights
Revenue - A$44.8 million up 45.1% compared to the Revenue for the prior corresponding period (pcp)
EBITDA - A$25.86 million up 34% compared to the EBITDA for the pcp
NPAT - A$17.13 million up 31.6% compared to the NPAT for the pcp
Earnings Per Share - A 15 cents per share
Final Dividend - A 2.5 cents per share (unfranked) (taking full year dividend for FY2015 to 4.2 cents per share)
Franchised Clinics - 36 new franchised stores opened in FY2015 (FY2015 total: 314 clinics, 10% higher than the pcp)
Owned Clinics - 8 stores acquired and operated by TTC, (FY2015 total: 19 clinics, 73% higher than the pcp)
Therapists Trained - 4,215 new therapists trained, 365 more than planned in FY2015
Chairman, Andrew Sneddon said, 2015 has been a transformational year for TTC and its operating subsidiaries in China. Following its successful listing on the Australian Securities Exchange (ASX) in September 2015, TTC acquired 8 clinics from the existing franchise base in line with the company's growth strategy, increasing the number of owned clinics to 19. The acquisitions were priced based on a multiple of between 2 and 2.5 x EBITDA, using funds raised from the listing.
"The management team in China has continued to remain very focused on profitably growing the business and embracing the standards of corporate governance expected from an ASX listed company. The Board has worked closely with management to develop the growth strategy while ensuring the underlying support platform keeps ahead of our growth plans".
"We are planning on continuing to expand the franchise clinic base throughout China, completing further acquisitions of existing franchises and setting up our first greenfield site in FY2016, said Ms Hu, TTC's Managing Director. We are also reviewing options for revised franchise fee structures in 2016. "
TTC's 45.1% increase in revenue was driven by:
- Revenue contributed by 36 new franchise agreements and the full period impact of 62 new franchise clinics in FY2014; and
- An increase in owned clinics revenue primarily due to the following factors:
- The full period impact of 2 new Owned Clinics acquired in the last quarter of FY2014. This contributed an additional A$3.1 million in revenue during FY2015; and
- The acquisition of 4 new owned clinics in the last quarter of FY2015. This acquisition contributed an additional A$1.4 million in revenue during FY2015.
Dividend and Dividend Re-Investment Plan
The company will also pay an A 2.5 cents per share final dividend, taking the full year dividend to A 4.2 cents per share. The record date for the final dividend will be 30 March 2016 and the payment date will be 20 April 2016.
The company is also pleased to advise of the adoption of a Dividend Re-Investment Plan (DRP) which will apply to the the final dividend to be paid on 20 April 2016 and provide shareholders an opportunity to invest their dividend in new shares, without brokerage. The DRP also provides an opportunity for the company to increase the free float of TTC shares given that Hwazon Investments Limited (the company's majority shareholder, owning 70.34% of TTC shares) has advised that it does not intend to participate in the DRP.
Eligible shareholders who wish to participate in the DRP must elect to do so by 1 April 2016. Directors have determined that the price at which shares will be issued under the DRP will be the arithmetic average of each of the daily volume weighted average sale prices of TTC shares sold on ASX for each 5 days commencing on the second trading day after the record date of 30 March 2016, less a discount of 5%.
Results compared to prospectus forecast
On 3 September 2015, the company completed an initial public offering (IPO) and was listed on the ASX, successfully raising gross proceeds of A$15,000,000, through the issue of 30,000,000 shares at an issue price of A$0.50 per share. The table below summarises the comparison of actual results for the period ended 31 December 2015 against that forecast in TTC's prospectus dated 30 June 2015.
To view the report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-TTC-909641.pdf
About Traditional Therapy Clinics Ltd
Traditional Therapy Clinics Limited (ASX:TTC) is a franchisor and the owner of one of the largest chains (by number of clinics) of traditional therapeutic health and wellness clinics in China. It currently has 343 franchised clinics and 35 owned clinics in operation. It is a well established business with a strong growth profile, employing a repeatable and scalable business model.
TTC has a highly recognised and respected brand, having received the prestigious Chinese Well-Known Trademark designation from the State Administration for Industry and Commerce. It operates within a strongly regulated industry sector of significant scale, which offers opportunity for further growth.
TTC is an ASX listed company employing around 1,000 staff across 27 of the 33 administrative divisions in China. More information is available at https://www.ttc-ltd.com/
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