Chairman's Address to Shareholders
Sydney, May 26, 2016 AEST (ABN Newswire) - Traditional Therapy Clinic's 2016 Annual General Meeting | Chairman's Address & Presentation
Welcome to the first Annual General Meeting of Traditional Therapy Clinics Limited (
ASX:TTC) following the successful completion of our Initial Public Offering and listing on the ASX on 3 September 2015.
TTC has continued the expansion of traditional health and wellness clinics in China under the Fuqiao brand, meeting or exceeding all financial and operational targets outlined in the Company's prospectus. It has been a very busy period for TTC with further expansion of our franchise network and the buy back of existing franchises in line with our strategy to increase our owned clinic portfolio.
Some of the highlights for the 2015 financial year compared to the prior corresponding period include;
- Revenue of A$44.8m, up 45.1%
- EBITDA of A$25.86m, up 34%
- NPAT of A$17.13m, up 31.6%
- Establishing 36 new Franchised Clinics, up 13%
- Buying back 8 established Franchised Clinics, up 73%
The 8 acquisitions were completed in November and December 2015 at an EBITDA multiple of between 2 and 2.3. The profits from these acquisitions are the foundations for continued strong growth for TTC in 2016. In addition, TTC plans to open a minimum of 35 new Franchise Clinics in 2016 and buy back a minimum of 10 existing Franchises.
From the beginning of 2016 until 26 May 2016, 17 new Franchised Clinics have been opened and a further 3 existing Franchises have been acquired at an EBITDA multiple of 2.3. The 2016 financial year has started strongly with March quarter like for like sales growth of 3% for owned clinics.
TTC has commenced a strategic review to consider potential new products and services to bring to market through our clinic network, all such products will be focused on quality and how we can further improve the health of our customers.
Attached to my Chairman's address is a presentation which I intend to go through, that further expands on the financial and operational performance of TTC for the year ended 31 December 2015 and the period to 31 March 2016. The presentation also provides some high level comments on the outlook for the current financial year.
I would like to thank my fellow Directors and Ms Hu for the considerable commitment and dedication they have all brought to the table this year. Equally, to all our shareholders, staff in Australia and China, advisors and customer's thank you for your ongoing support. It is each of you that makes TTC the very special company that it is today, focused on bringing more health products and services to the market to help our customers live a healthier life.
Andrew Sneddon
Chairman
To view the presentation, please visit:
http://abnnewswire.net/lnk/3SU627SD
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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