PSQ: Set to smile again?

This article was written by our regular contributor Anton Crabbe. You can read his bio here

Pacific Smiles (ASX:PSQ) is the largest branded Dentist Service Organisation in Australia. With 131 dental centres across Australia and plans for more to come. They own and operate 11 NIB Dental Care centres and in July 2020 signed a 10-year Managed Services Agreement with health fund HBF. Under this agreement PSQ operates dental centres in Western Australia, on behalf of HBF, for a fee. Their business model is a mix of a franchise model and a service-provider model offering a range of dental services such as general, cosmetic, and restorative dentistry to various segments of the market, including adults, children, and seniors. 



PSQ doesn't directly employ dentists, rather it collaborates with independent dentists, operating as a support organisation. The model is designed to attract high-quality dentists by offering them modern facilities, administrative support, marketing, and an existing customer base. This allows the dentists to focus on providing dental services while PSQ manages the business aspects of the clinics. 
It comes as no surprise that according to PSQ’s FY22...