On behalf of the Board of Healthia Limited (Healthia), it is my pleasure to invite you to become a Shareholder.
Healthia was formed to bring together well established allied health brands, which include the My FootDr Podiatry and
Allsports Physiotherapy brands, with the aim to be one of Australia’s leading allied health companies. Healthia’s future
growth is forecast to come from both its organic growth strategies and the acquisition of well-established podiatry and
physiotherapy clinics throughout Australia.
The Group currently owns and operates the My FootDr Podiatry Clinics, consisting of 56 podiatry clinics and owns an
orthotics laboratory (iOrthotics) and 50% of an allied health supplies business (D.B.S. Medical)
6. As at the Prospectus Date,
the Group has entered into binding agreements7
(the Acquisition Agreements) to acquire the following businesses:
1. 14 Allsports Physiotherapy Clinics located in Brisbane and the Gold Coast, the Allsports management business and the
Allsports intellectual property, including the brand (the Allsports Physiotherapy Acquisitions),
2. 16 podiatry Clinics8 located in Queensland, Victoria and South Australia (the Podiatry Clinic Acquisitions),
3. 9 physiotherapy Clinics located in Queensland (the Physiotherapy Clinic Acquisitions),
4. 7 Extend Rehabilitation branded hand therapy Clinics9 located in Brisbane (the Extend Rehabilitation Acquisition),
5. the remaining 50% of the issued share capital of My FootDr (Cleveland) Pty Ltd, not currently
owned by the Company, and
6. a further 25% of D.B.S. Medical, bringing the interest owned by the Company to 75% of the issued
capital of D.B.S. Medical.
In addition to these Acquisition Agreements, the Group has entered into the Non-Binding Heads of Agreements10, to
acquire an additional 4 physiotherapy clinics located in Queensland.
Through the consolidation of the allied health businesses, Healthia expects that its clinics, and its clinicians, will
optimise patient outcomes through greater interdisciplinary cooperation and cross education, efficient delivery of
care due to co-location of services, access to well-equipped facilities and reduce costs of care through its integrated
A key focus of Healthia is to retain and incentivise its clinicians. Healthia has developed a clinician retention program
(Clinician Retention Program) which, in addition to a series of structured learning and education programs, allows our
clinicians to have an ownership interest in the Group’s Clinics. Under the Clinician Retention Program, the clinicians are
given the opportunity to acquire clinic class shares (Clinic Class Shares). Clinic Class Shares are non-voting shares which
entitle the holder to a share of any dividend declared, calculated on the performance of the clinic in which the Clinic
Class Shares are issued. The Clinic Class Shares are designed to create alignment between the interests of clinicians and
shareholders. We consider this model as a compelling proposition for our patients, our clinicians and our investors.
After Listing, Healthia will look to expand and grow through further acquisitions of complementary allied health businesses
as well as implementing initiatives to drive organic growth. Our key organic growth drivers include:
: increasing revenue of acquired clinics, including the introduction of podiatry services into physiotherapy clinics where
these services do not already exist,
: investment in equipment and technology upgrades to expand the services provided in its clinics,
: utilisation of vertically integrated businesses such as iOrthotics and D.B.S Medical to drive buying synergies, y optimisation of existing clinics, generating cost efficiencies through scale and improved clinic management, and
: education of all clinicians to ensure standards of care are maintained and patient outcomes are optimal.
Healthia is supported by a Board and Senior Management team who have experience and capability in successfully
integrating businesses and implementing the systems necessary to facilitate and improve the management and
performance of its clinics. We are confident that we have put in place the appropriate corporate governance framework,
risk management processes and human resource skills to support the growth strategies of Healthia.
An underwritten offer of approximately 26.8 million Shares at $1.00 per Share is being made under this Prospectus to raise
approximately $26.8 million. Proceeds of the Offer will be used to fund the Acquisitions and the costs associated with the
Acquisitions, fund the cost of the Listing, fund the Existing Shareholders’ Sell-down and for working capital. An offer of 7.5
million Shares at $1.00 per Share is also being made under this Prospectus to Eligible Clinicians as part consideration for
the acquisition of their allied health businesses under the Acquisition Agreements.
Healthia aims to provide income returns to Shareholders and has established a dividend policy targeting payment
of between 40% and 60% of NPATA to Shareholders. No dividends are expected to be paid during FY19. The Board
anticipates that the first dividend to Shareholders is expected to be paid in October 2019.
This Prospectus contains detailed information about the Offer, the industries in which the Group operates, its business
and historical and forecast financial information relating to the Group. The Group is subject to a range of risks which are
discussed in detail in Section 5 and include among others, the integration of the newly acquired clinics taking longer or
costing more than anticipated, the loss of key clinicians and employees from the business, clinicians not being willing to
hold or continue to hold Clinic Class Shares and a change or disruption in market structure or dynamics, such as the entry
of new market participants.
I encourage you to read the Prospectus in full and to carefully consider the Offer. On behalf of my fellow Directors and our
management team, we look forward to welcoming you as a Shareholder.
Dr Glen Richards