CRIS MASSIS EXPLAINS VALUE OF ADVENT HEALTH
Advent Health (ASX:AH1) is Australia’s leading allied health group, bringing a diverse range of health services together under the “allied health banner”. In their Digital Roadshow, Advent Health CEO & Director Cris Massis, CFO, Robert Andrewartha and Chairman, Lou Panaccio speak to the key details of the company and its role in the $11 billion dollar allied health industry.
Allied health industry:
- Revenue: $10.8bn
- Annual growth FY14-19: 3.3%
- Direct Employment: ~75,000
- Businesses: >35,000
Advent Health is outperforming the allied health sector at a rate of approximately 7%, doubling that of the broader sector. The company is working to centralise the administrative elements of the business, in order to “let the clinicians do what they do best” and service their patient’s needs and outcomes.
Advent Health value add:
- Centralised support including benchmarking and financial backing
- Centralised up-skill programs
- Career opportunities
- Diverse service offering
- Centralised online management system
- Technology driving multidisciplinary opportunities
- Data analysis
“Excellent patient service, delivered by focussed and committed professionals will actually lead to profits from a corporate point of view.”
– Lou Panaccio, Chairman, Advent Health
Capital structure and use of funds:
The company has raised $33.2 million in both bank funding and through their IPO, allowing them to settle their vendors, pay the cost of the offer and leaving the company with strong working capital.
“We’re going to have cash coming in day 1 and its going to set us in a fantastic position to move forward, to grow..”
– Robert Andrewartha, CFO, Advent Health
The company is expecting the next decade to deliver strong demand for their services and are looking to exceed expectations as a “modern day healthcare business”.
Not your normal consolidation:
The Board members of Advent Health have seen some of the pitfalls of a rollup strategy and are applying those valuable lessons here. Advent has:
- a CEO with relevant and deep industry experience, Cris Massis has come from the allied health industry
- Chairman and Board with prior ASX experience, Lou Panaccio is director of Sonic Healthcare c.$11bn ASX listed company
- Rob Andrewartha as CFO has integration experience and is supported by a Chief Performance Officer with a detailed integration plan that has already been actioned
- been disciplined on acquisitions, had long engagement periods with the vendors, their cultural fit has been important and all vendors are taking a higher equity stake (on average 30% shares in Advent Health)
- bank funding of $15m from the Commonwealth Bank of Australia following their comprehensive review of the business and integration planning
Watch the Advent Health Digital Roadshow
For investor information visit: www.adventhealth.com.au/invest
By Velvet-Belle Templeman, Boardroom.Media
