Australia’s fastest growing allied health portfolio has increased further with Healthia (ASX: HLA) acquiring 7 new clinics to grow its national network of healthcare businesses to 293.
The acquisitions include five physiotherapy clinics (Physioworks) and one occupational therapy clinic (Scar Care) in Queensland, and one physiotherapy clinic (Eyre Sports Physiotherapy) in South Australia, expanding Healthia’s presence as the largest provider of physiotherapy services in Australia.
Total upfront consideration for the 7 clinics is $3.19 million and are expected to deliver $4.35m revenue and $0.74m EBITDA annually.
“These acquisitions consolidate Healthia’s position as the fastest growing allied healthcare portfolio in Australia and are part of our growth strategy to deploy $20 million towards earnings accretive acquisitions each year,” said Healthia Managing Director, Wesley Coote.
“Given the fragmented nature of Healthia’s primary disciplines – physiotherapy, podiatry and optometry – we continue to see good opportunities to acquire clinics that we are confident we can grow.
“By providing support and marketing services that can streamline back office operations, our clinicians are able to focus their efforts towards additional allied health services and better patient outcomes.”
The acquisition spree follows on from a busy few months which included Healthia’s $88.4m acquisition of Back In Motion Group and its 64 physiotherapy clinics throughout Australia and New Zealand. That BIM acquisition alone is expected to deliver approximately 12.7% earnings per share growth for Healthia.
Combining their acquisitions made since July 2021, Healthia has already increased its annualised revenue by $73.9 million which represents a 52% increase on their FY21 results, and EBITDA by $14.2 million – a 66% increase.
It doesn’t end there however, with Healthia planning to deploy a further $12.5m toward earnings accretive acquisitions in FY22.
Key to their acquisition rationale has been to identify allied health clinics that they can improve via integration into the Healthia model. This includes national support and marketing services, as well as floorspace optimisation to offer additional services that the clinic may not previously have offered.
Historically, the November and December months have been a busy period for Healthia as Australians seek to utilise their private health insurance extras before they lapse on December 31. For Healthia, this will see an increase in customers purchasing new glasses from their optometry division, new orthotics through their podiatry division and general check ups and massages from their physiotherapy division.
Where some allied health businesses have trouble attracting new clinicians, Healthia can increase the allied health services offered at individual clinics through it’s nation-wide professional development programs. These courses ensure Healthia clinicians across their 293 allied health businesses are up to date on best practice and are educated on the latest healthcare trends within their division.
Having grown its allied health portfolio by 175% in just three years while continuing to deliver rising shareholder returns, a recent survey of Healthia employees by independent consultants, BPA Analytics, categorised Healthia as a ‘Culture of Success’.
For the Year ended 30 June 2021, Healthia reported a 52% increase in revenue to $140.4 million and 91% increase in underlying net profit after tax to $8.9 million with more earning accretive acquisitions being funded from free cash flow than ever before.
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