Ann: H1 2013 Investor Presentation , page-2

1300 Smiles Dental Plan
$29.98 a month approx $360/year
You get 2-Check-ups @$50.00 each
2-x-rays @$40.00 each
2-Cleans @ 65.00 each
2-fluoride @ 25.00 each
Total treatment $360.00

In what way is this going to bring treatment to the 70% of the population who don't currently have regular dental treatment because of cost. It is basically what countless BUPA memebers choice and Medibank preferred providers are charging everyday.

BUPA basic extras is about the same cost approx 15$ per fortnight and you get 60% back on your preventive care as well as any restorative Dentistry you might need.
In my opinion the deal is a dog!
There is no way putting another middle man between the patient and the Dentist is going to make Dentistry affordable for the 70% of Australians who can't pay for it regularly.
1300's new model
Patient-(Dental Members Australia)-1300smiles-Dentist
by the time all these guys get there cut they can't compete with the Dentist-Patient relationship that is going on in 60% of other practices.
Dentistry I believe is eventually word of mouth. People talk about the experience and the cost.
IMO the 1300 dream has been strung out by the CDDS and this is the sole reason for profit growth. The MD has been very clever in how he has indirectly disclosed this to the Market without coming straight out and announcing that their single biggest customer (20% revenue possibly as high has 40%) has stopped buying.
If he ever has to give an account for his level of disclosure in some "ABC learning" type investigation in the future he will always be able to say " I described the closure of the CDDS as being like a bomb on the Dentistry BUS how much clearer could I have made it" Then hypothetically he could sail off into the sunset with 60+% of all the record dividends in his own personal bank account. '
I would not be surprised to see more capital raising or a possible sale of the company before the next reporting season.
The above is just the personal viewpoint of one person and contains numerous assumptions.
If you want another point of view read the Ord Minnet report there is a link on the company website! It is also referenced in the company report so I am guessing this is the view the company would like to sell!