Preliminary Final Report
Sydney, Feb 28, 2017 AEST (ABN Newswire) - Traditional Therapy Clinics Ltd (ASX:TTC) is pleased to provide the Company's Preliminary Final Report for the year ended 31 December, 2016.
Review of operations
The principal activity of the TTC group during the financial year was the provision of health services through its Fuqiao brand of franchised and owned health and wellness clinics throughout China.
- In the first half year of 2016, the Group mutually terminated the property purchase agreement of a new office building in Chongqing China. The developer has fully refunded the purchase money paid in the prior years (RMB 128 million) to the Group before the end of 2016. In December 2016, the Group proceeded to acquire another new head office building within Chongqing City's main financial district. The new building costs RMB92.53 million or A$18.46 million (at an exchange rate of 5.01).
- As in the previous years, the Company continued its focus on growing the number of franchised clinics, opening an additional 38 clinics.
- The Company also continued to focus on its core strategy of growing the number of owned clinics and acquired a further 7 clinics from its existing franchise base. The 7 clinics were acquired at a multiple of between 3 and 3.5 times of EBITDA.
- The Company is continuing its ongoing efforts to explore additional therapy techniques and embark on ongoing improvements in all aspects of its core services so as to further enhance its overall customer experience.
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About Traditional Therapy Clinics Ltd
Traditional Therapy Clinics Limited (ASX:TTC) is a franchisor and the owner of one of the largest chains (by number of clinics) of traditional therapeutic health and wellness clinics in China. It currently has 343 franchised clinics and 35 owned clinics in operation. It is a well established business with a strong growth profile, employing a repeatable and scalable business model.
TTC has a highly recognised and respected brand, having received the prestigious Chinese Well-Known Trademark designation from the State Administration for Industry and Commerce. It operates within a strongly regulated industry sector of significant scale, which offers opportunity for further growth.
TTC is an ASX listed company employing around 1,000 staff across 27 of the 33 administrative divisions in China. More information is available at https://www.ttc-ltd.com/