|
Ticker:
CGL
Website: www.caci.co.nz
MD: David Smith
Chairman: Kate Anderson
Annual meeting date:
Auckland
, 28 September, 2006
Shares.net.nz
comment
Caci
Group listed via the NCM or New Capital Markets system
and was then listed on the NZAX market as one of the
first eleven.
Since
listing Caci has struggled to stay in the black with
profits being derived from the sale of franchises rather
than trading profits, ie the profit for 2006 was
$357,000 which included $290,000 capital profits made on
the sale of the companies clinics in
Newmarket
and
Wellington
.
CGL
is currently opening more clinics in Napier,
Invercargill and Onehunga which will take the companies
number of outlets to twenty.
CGL
has opened Paintbox franchises (finger nails) but these
have failed to generate forecast returns.
In
the equipment sales division business has also been
difficult.
CGL
directors should consider the purpose of remaining
listed as the top four shareholders control 80% of the
shares with the balance 540,000 of shares are seldom
traded.
The
personal health and beauty sector is a growth area,
however CGL seem unable to generate any growth in
franchise fees and to be able to hold gross margin and
grow sales.
The
jury is still out.
PE
forecast
CGL
has 6,700,000 shares on issue @ .30 giving a market cap
of $2.1m
A
pe of 8-10 would seem reasonable which would mean a
profit of $200-260,000.
Company
comments on its latest result
The
full-year result includes capital profits of $290,000
made on the sale of the company's clinics in
Newmarket
and
Wellington
. The sale of these company-owned clinics is also
reflected in the consequent drop in total sales made in
the consolidated accounts. The company continues to own
the Christchurch CACI Clinic, but this remains on the
market.
In
furtherance of its stated strategy of rapidly opening
additional CACI Clinics, a new company-owned CACI Clinic
will open in
Lower Hutt
in mid-July. The Company is already negotiating with a
potential purchaser for this clinic and hopes to have
the clinic sold to a franchisee as soon as possible.
Three
new CACI Clinics will shortly be opened by new
franchisees in Napier, Invercargill and Onehunga. In
addition our existing
Hamilton
franchisee will soon be opening a second CACI Clinic in
North Hamilton
. These CACI clinics are in addition to the four new
franchised clinics already opened during the 2005
financial year (Ponsonby, Whangarei, Kohimarama and
Orewa) and will bring the total number of CACI Clinics
to 20.
Latest
financial result (full year)
Audited
figures for the year to March 31, 2006
(Released
14 June, 2006 – figures in $NZ’000)
This year
Previous year
Change
Trading
revenue
4,666
5,249
-11.1%
Other
revenue
17
34
Total
Operating Revenue
4,683
5,283
-11.4%
Pretax
surplus/(deficit) 357
46
+676%
Tax
28
16
Net
profit/(loss)
329
30
+996%
Recent
milestones
December
2005
The company sells its
Wellington CACI Clinic for $313,000, generating a
capital profit of more than $180,000. The Board hopes to
open a company owned CACI Clinic in the
Lower Hutt
area as soon as possible. The
Lower Hutt
clinic, when established, will ultimately be on-sold to
a franchisee owner.
September
2005
At the AGM,
shareholders elect a new director, Dr Stuart Ekdahl. Dr
Ekdahl has considerable experience as a director of
primary medical care businesses in particular the White
Cross A&M clinic chain, which he co-founded.
Company
activities
The
CACI Group is a holding company for Micromode Ltd,
franchisor for The CACI Clinics franchise. The CACI
Clinics are a franchise of skincare and appearance
medicine clinics located throughout
New Zealand
, which employ beauty therapists, nurses and doctors to
provide clients with appearance related advice, products
and services. In addition to its franchising business,
Micromode is also an importer and distributor of
cosmetic and skincare products in
New Zealand
(including Smashbox, Murad, philosophy and Cellex-C).
|
