Dentalum Operations AB (publ) publishes Q3 Interim Report

30 November 2021, kl 09:00 | Regulatory press release

Dentalum has continued to deliver on its growth strategy through the acquisitions of two additional clinics during the third quarter, expanding its presence to the region of Östergötland. As of September 30, 2021, Dentalum consists of 17 clinics located in seven regions in Sweden. Dentalum also signed share purchase agreements to acquire three additional clinics to be completed in November 2021. Dentalum Operations AB (publ) successfully issued additional SEK 100 million of senior secured bonds – a “tap issue”, under the total framework of SEK 600 million. The tap issue attracted strong demand, leading to issuance at a price of 104 per cent, corresponding to an effective yield of 5.67 per cent until maturity (October 2023). The capital structure was further strengthened by shareholder´s contribution, amounting to SEK 46.2 million in total, which together with the bond issue, is intended to be used to finance additional acquisitions.

Third quarter 2021

  • Reported operating revenues amounted to SEK 53.6 million (15.8). The increase in quarterly revenues compared to the same quarter in 2020, is mainly driven by 10 additional dental clinics that were acquired since the same quarter 2020. Two of the clinics were acquired during the third quarter of 2021.
  • Operating result, EBITDA, reached SEK 9.9 million (2.4) where SEK 13.6 million (4.4) was generated in the dental clinics and SEK -3.7 million (-2.0) in the Parent company, Dentalum Operations AB (publ.).
  • Net financial expense amounts to SEK -6.7 million (-0.3) and consolidated net loss amounts to SEK -2.8 million (-).
  • Cash flows from operations amounted to SEK 3.7 million (-1.5). Net cash flow after investing, financing activities and capital contributions was SEK -2.1 million (20.9).
  • As per September 30, 2021, total equity amounts to SEK 144.9 million (73.1), cash balance of SEK 108.3 million (34.0) and interest-bearing debt of SEK 312.6, adding amortized financing costs and accrued interest. (31.8).
  • Continued delivery of the growth strategy led to execution of acquisition of two dental clinics during the quarter, financed by equity contributions and cash on balance sheet. Continued execution on M&A strategy with signing of share purchase agreements for three additional clinics during the quarter.

January – September 2021

  • Reported operating revenues amounted to SEK 161.5 million (26.1).
  • Operating result, EBITDA, reached SEK 32.2 million (2.5) where SEK 43.2 million (8.1) was generated in the dental clinics and a loss of SEK -10.9 million (-5.6) in the Parent company, Dentalum Operations AB (publ.).
  • Net financial expense amounts to SEK -21.0 million (-0.5) and consolidated net loss amounts to SEK -6.6 million (-0.5).
  • Cash flows from operations amounted to SEK 22.9 million (-0.9).
  • Net cash flow after investing, financing activities and capital contributions, was SEK -73.0 million (29.9).

Significant Events after the reporting period

  • On October 6, settlement of the net proceeds from the bond issue was completed. The bonds were subsequently admitted to trading on Nasdaq Stockholm.
  • On November 1, the acquisition of Erik Lennartsson AB (“Dentalakademin”) was completed.
  • On November 12, Dentalum announced signing a Share Purchase Agreement to acquire Tandläkarhuset Enköping, in the Uppsala region, thereby expanding to an eighth region.
  • On November 22, Dentalum announced financial targets for the period 2022-2024 for the group and the considering of a new issue of share through a private placement in Dentalum Group AB to a limited group of investors.

A number of existing shareholders, as well as members of Management and Board, have undertaken to subscribe for approx. 30% of the total offering size of approximately SEK 120 million.

The financial targets reflect both the industry development and the groups projected organic and acquisition- based growth. Dentalum´s target is to reach SEK 280 million in proforma and adjusted EBITDA by the end of 2024, and to keep a sustainable and high profitability exceeding an average annual adjusted EBITDA-margin of 20%.

In connection with this, the Board of Directors of Dentalum Operations AB (publ) stated its intention to list the shares of Dentalum Group AB on a regulated market or multilateral trading platform (MTF) within 18 months.

For further information, please contact

Max Dorthé Ladow, CEO and co-founder, +46 709 85 97 83, max.ladow@dentalum.com 
Sofi Eriksson, CFO, +46 705 95 46 33, sofi.eriksson@dentalum.com

For more information, please visit www.dentalum.com

Dentalum Operations AB (publ) is a fast-growing dental service organisation focusing on acquiring profitable and sustainable dental clinics in the Nordics. Dentalum’s philosophy is built on local identity, where the clinic owners continue as entrepreneurs operating the clinics with a high degree of independence post-acquisition. Dentalum’s goal is to build a world class organisation by creating a strong corporate culture, positive work environment and growth opportunities which motivate and engage our coworkers to provide the highest quality of care and a remarkable service to our patients. For more information, please visit www.dentalum.com

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