Is private eqyity sniffing around?

An article from the AFR

Most sales come from Retail, but Vet margins are much better -- 70% vs 47% (roughly, as of HY18)

Greencross has a number of potential profit drivers:

Network expansion: 

Claims it has the potential to open 350 retail stores. It currently has 247, up from 240 at end of FY17 (opened 19 in FY17)

Is targeting 120 in-store clinics, currently has 45 as of H1 2018. 6 more than at the end of FY2017. (It opened a total of 22 in FY17)

Private label

Would help improve gross margins. Currently represents 20% of all retail sales. Believes it can push this to 25% in the medium term

Online

Growth here has been strong, but off a low base. Up 92% H12017 to H12018

Industry growth

expected to be 2-3% annually

Increasing market share

Currently just 9%

Store Maturity

Ramp up of sales in immature stores (– ~60% of Greencross’ retail stores are < 4 years old. The average time to store maturity is 5 to 6 years.) So same store sales should look better than usual in coming years, but will largely be due to this effect