Oasis Healthcare, the dental practice group, unveiled profits of £1.2 million today but said that a shortage of dentists was hampering its ability to grow sales.
The group said that a 58 per cent hike in turnover to £73.9 million would have been higher if it had been able to fill 26 vacancies at its surgeries.
A disappointing performance at 12 of the former Dencare practices it acquired in 2002 also restrained revenues in the year to March 31.
But an increase in private dental work at higher margins and opportunities for treating more NHS patients made Oasis confident about its long-term prospects.
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The profits performance was in line with expectations after Oasis stunned investors in February with a downbeat trading statement highlighting the problems.
Analysts had previously forecast full-year profits before exceptional items of £2 million, up from £470,000 at the same stage last year.
Oasis provides services to NHS and private sector patients from 127 practices in the UK, including five cosmetic dentistry surgeries in central London trading as Dentics.
It has grown rapidly in recent years, buying the 36-strong Dencare practices in December 2002. Other deals include the acquisition of the former Ora surgeries and a number of independent practices.
The group said private dentistry now accounted for 62.5 per cent of turnover and this put it line for higher profits in future.
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Ron Trenter, the Oasis chairman, said that demand among private clients was continuing to grow and this provided “further attractive opportunities to increase revenues and profits for the group.”
Moves by the Government to hand control of the £1.2 billion dental services budget and the commissioning of local services to Primary Care Trusts next year were also likely to benefit the group, Mr Trenter said.
But recruitment remained a concern even though the impact of a national shortage of dentists had affected the sector more severely than Oasis, he said.
Efforts were continuing to hire specialists within the UK and overseas in the European Union and Commonwealth countries.
Oasis also hoped to update investors soon on its search for a new chief executive to replace Malcolm Hughes who left the company at the end of April.
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At the bottom line, Oasis saw pre-tax losses widen to £3.4 million last year from £2.3 million, mainly from writing down the value of some of its surgeries.