These clinics in general are low end small commuity clinics with...

These clinics in general are low end small commuity clinics with low revenue on a daily basis, with basic radiology services. Caulfield X-ray is a little bit more specialised.

The EBITDA seems attractive however I would like to see the equipment profile and required capital investment over the next three years. Given that the earnings are from general Xray, these apparatus have a long life, Ultrasound less so.

From my analysis of the sites there is little CT except for Caulfield, mostly dental and regular Xray and US. I wouldnt be too threatened if I was i-med or PRY or IDX. Rather it cements these three operators as the premium high end hospital providers and in the case of i-med, the leading community provider.

At best Capital might get referrals for further CT and MRI scans at their Frankson and Dandenong sites from US/Xray at the two mornington peninsula sites and there may be radiologist benefits accross the Capitol Network.