This is a company where it's business model is growth by acquisition of allied health practices at cheap multiples. Management look sensible and look fairly disciplined about not overpaying, but I can't help but wonder where the growth is going to come from.

The costs that can be stripped out of these predominantly sole trader allied health profressionals earning personal services income aren't huge, and the back end operations where most roll ups strip out costs are not going to be high for most allied health practices.

The dominant health/practice management package (Halaxy) is already free or super low cost and will more than likely already be in use for most of the small individually owned practices.

Like Greencross, National Veterinary Care, and Primary Health Care (now Healius) before it, the end game is likely to be acqusition or merger and being taken off market at some point in the future.

As long as they don't go crazy and pay at multiples over the odds to grow by acquisition like ABC Learning did before getting bitten by the GFC, Healthia will probably be OK and be a relatively steady investment, but this isn't a hyper growth story.

Disc: not held.