Requisite Approvals
August 13 2003 - 5:54AM
UK Regulatory
RNS Number:6183O
Oasis Healthcare PLC
13 August 2003
Immediate Release 13 August 2003
Oasis Healthcare Plc
Statement re: Capital Reduction & Objectives For
Cash Generation, Debt Reduction & Future Dividends
Oasis Healthcare Plc ("Oasis" or "the Company), the AIM-listed UK dental care
operator, announces that it has received the requisite approvals to effect a
capital reduction, which will eliminate the deficit on its profit and loss
account reserve. This will allow the Company to pay dividends earlier than would
otherwise be the case, although it is not planned that a dividend be declared in
the current financial year.
Oasis owns and operates over 128 dental practices in England and Wales, with
annualised turnover in excess of #73 million. This positions the Company as
market leader. After a period of rapid expansion through independent practice
and corporate acquisitions over the past three years, the short term emphasis of
the Company is now on securing significant organic growth through continuing
practice development designed to increase turnover, reduce costs and thereby
increase profitability and margins. As mentioned at the time of Oasis'
preliminary results, the Board expects to make only a limited number of
independent practice acquisitions over the next twelve months based primarily on
geographic criteria.
The Board of Oasis intends that future significant free cash flow generated by
the Company's operations will, over the next twelve months, mainly be used to
further upgrade Oasis' estate of dental practices. This includes new equipment,
internal refurbishment, branding, and computerization, all these initiatives
being consistent with the Oasis emphasis on quality of service in a
predominantly private care environment. Thereafter, it is expected that surplus
cash generated by the Company will be used to reduce its bank borrowings and,
when appropriate, to commence the payment of a dividend.
For further information, please contact :
Malcolm Hughes 01603 625 335
(Chief Executive, Oasis Healthcare Plc)
Lisa Baderoon 020 7466 5000
(Buchanan Communications)
This information is provided by RNS
The company news service from the London Stock Exchange
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