Burleigh-based Smiles Inclusive suspended from ASX after failing to lodge half-year results

A major blow has been struck against Gold Coast dental practice group Smiles Inclusive this morning.

BURLEIGH-based dental practice group Smiles Inclusive has been suspended from the ASX after failing to lodge its half-yearly accounts on Friday.

The Tony McCormack-led company made the announcement this morning stating it understood the ASX will suspend its shares from this morning until it releases its half-year financial statements.

“The company’s audit and risk committee and management team are working closely with the company’s auditor to release the finalised results as soon as possible,” it said.

Smiles shares last traded at 3.5c and have fallen as low as 3.1c in the past 12 months.

The company has faced two grillings recently from the ASX in regards to whether it is complying with the sharemarket operator’s listing rules.

Shares in Smiles Inclusive were suspended this morning. Photo: iStock

Smiles responded on February 24 to queries from the ASX relating to compliance with its finance facility with main lender NAB.

The company said it had been granted a waiver for the covenants for the NAB loan in March subject in part to ongoing review and reporting by accountancy firm Deloitte.

Smiles said it was currently in discussions with NAB on the development of modified covenants.

The company was also questioned by the ASX in early February regarding its latest negative cashflow report which left a negative balance of $3.2 million.

Chairman David Usasz responded then that the company was continuing with its turnaround plan.

“Results remain positive despite the cashflows for the last quarter which were negatively affected by the typical end-of-year seasonal slowdown, an additional pay cycle for the month of December and several one-off legal, insurance and business restructure costs,” Mr Usasz wrote.

He said the company expected cashflow to improve in the short-to-medium term although “the likelihood of negative operating cashflows for the time being remains relatively high”.