To be honest, I am not a 100% animal lover myself, but I do confess that I have a soft spot for animals. I think that is the main reason why I was attracted to the company in the first place, and made me more appreciative of given a company that I can connect with.
As much as I enjoy learning about the group, there were a few things that I do not understand. Most figures and phrases are intuitive, although i am having some difficulty understanding some concepts. Please note that i've already highlighted a few of the key concepts in my previous blogs!
Feel free to look at my blog and give any feedback! Would be greatly appreciated!!!
KCQ1: What are the main strengths that Greencross Vets have? What characteristics do they have that compete with other competitors in the same industry?
- have 20+ services available to the public
- offers a range of financial accounts/discounts -' Greencross do offer a senior/aged pensioner discounts on professional services on presentation of your Senior Card and we also offer a Shareholder discount. All practices accept cash, credit card, EFTPOS and AMEX payment'
- the 1,200 staff, according to the 2013 Annual Report: 'The exemplarily results achieved by the company over the last couple of years are a credit to all the hard work and levels of engagement of all staff within the Greencross'
Q2.What is 'profit before tax and exceptional items'? I understand what profit before tax implies but what do' exceptional items' signify? Where can I learn more about this term?
Q.3 How can Greencross Vets increases their customers loyalty?
- have 20+ services available to the public
- offers a range of financial accounts/discounts -' Greencross do offer a senior/aged pensioner discounts on professional services on presentation of your Senior Card and we also offer a Shareholder discount. All practices accept cash, credit card, EFTPOS and AMEX payment'
- the 1,200 staff, according to the 2013 Annual Report: 'The exemplarily results achieved by the company over the last couple of years are a credit to all the hard work and levels of engagement of all staff within the Greencross'
Q2.What is 'profit before tax and exceptional items'? I understand what profit before tax implies but what do' exceptional items' signify? Where can I learn more about this term?
Q.3 How can Greencross Vets increases their customers loyalty?
Maybe Greencross could 1) increase advertising to attract more customers (they claim to be Australia's leading Vet, but i've never heard of it before this assignment) 2) The discounts that they provide to pensioners, but what if they opened it up to long term members, rather than just seniors?
Q.4. The 2013 Annual Report States;'The company has in place a Dividend Reinvestment Plan (‘DRP’) which will balance the need for shareholders to
receive a return via a dividend and the company’s need for cash to fund future acquisitions'. I've tried to research this term but i still have not found a simple explanation that can help me to understand this concept?
Q.5 The company will target the opening of a minimum of two new veterinary hospitals over the next 12 months. New
veterinary hospitals will be opened in areas where it is identified there is an undersupply/underservicing of veterinary
services, a large veterinary services spend and/ or within a growth corridor. I wonder what research they did to find out these under-serviced areas?
K.6 'Funding risk – as at 30 June 2013 the consolidated entity had a debt facility agreement with the
Commonwealth Bank of Australia totalling $48.7 million (30 June 2012: $45.2 million). The facility agreement
expires on 30 September 2015 and is subject to certain terms and conditions. Funding risk is the risk that the
company will be unable to receive a favourable outcome, due to market conditions at the time it seeks to
refinance. The company ensures that at the anniversary date of the debt facility agreement, an extension to
the debt facility agreement is negotiated, ensuring that the borrowings of the company are extended for a
period of up to three years. At the end of each financial year-end, the company will ensure, as a minimum, that
the debt facility has greater than twelve months to run. More than the numbers, i was more suprised that the report actually explained this concept, made me feel a lot more comfortable in understanding the company a bit better!!!
K.7. An interesting quote from the report: The directors and management of the consolidated entity will continue to pursue growth in its current operations and
will seek further cost efficiencies so as to optimise the returns for shareholders from the existing portfolio of veterinary
practices. Directors and management will continue to pursue acquisitions which fit within the core competencies and
investment criteria of the consolidated entity.
Please feel free to comment and ask questions!!!!
Hi Bronte,
ReplyDeleteThank you for sharing so much information about your company. It really looks like you have put great thought into it. Here's hoping you get all of your questions answered.
Elle x
For your Q2, would the exceptional items be the items that do not require tax be paid for them?
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