More M&A activity this morning with Pacific Smiles board confirming they have received an offer from Genesis Capital, who have built an 18.75% position in the company.

The board described it as "opportunistically timed", which is something less than outright rejection.

The market seems to think a higher bid is likely given it's trading slightly above the offer price.

I kind of think M&A might be a theme throughout 2024. It's just about who is going to have the balance sheet to be able to take advantage of trading conditions.

[Not held]

Pacific Smiles Group Limited – Half Year Results to 31 December 2020

Key financial highlights

The key financial highlights from the results include: -

~ Patient Fees generated by the dental practitioners working at dental centres owned and operated by Pacific Smiles were $121.7 million, up 15.5% on the prior period

~ Revenue of $78.4 million, up 14.9% on the prior period

~ Same centre Patient Fees grew 13.2% for the period • EBITDA (underlying) of $21.2 million, up 64.7% on the prior period

~ NPAT (underlying) of $10.4 million, up 106.6% on the prior period

~ 8 new Pacific Smiles Dental centres opened in H1 2021, bringing the total to 102 centres as at 31 December 2020

~ Interim dividend of 2.4 cps (fully franked) declared (H1 2020: 2.4 cps)