Sprout reaches its goal of planting 10,000 trees for One Tree Planted

Sprout reaches its goal of planting 10,000 trees for One Tree Planted

Vita Group couldn’t be more proud of its technology accessories brand Sprout, who have reached their goal of planting 10,000 trees for environmental not-for-profit One Tree Planted.

Since the end of March, Sprout has been funding the planting of 10 trees for every product sold online to help reforestation efforts following the devastating 2019/2020 Australian bushfires. According to One Tree Planted, young, healthy forests can help to prevent bushfires from spreading catastrophically by suppressing future fires and reducing the impact of smoke on public health and native ecosystems.

Sprout’s campaign has also supported One Tree Planted to conserve Australia’s unique wildlife and limit global warming, with a mature forest of 10,000 trees sequestering as much as 240 tonnes of carbon dioxide to provide for a cleaner, healthier climate.

“One Tree Planted wouldn’t be able to do the work that we do without our amazing donors,” said Cassandra Vitiello, Greenhouse Manager at One Tree Planted. “Thanks to companies like Sprout, who have contributed 10,000 trees to our project in Australia, which will help with climate change mitigation, create lasting community impact, rebuild habitat for wildlife, and so much more.”

General Manager at Sprout, Ben Caddy said he was thrilled to see Sprout reach its goal of funding the planting of 10,000 trees for One Tree Planted and looks forward to continuing to work with the organisation to create a more sustainable future.

“We love the work that One Tree Planted does and are really proud to have played a small role in helping them to rebuild following Australia’s recent bushfires,” he said. “Thank you to all our customers who supported Sprout and One Tree Planted throughout this campaign and helped us achieve our 10,000 trees target.”

This partnership forms just one pillar of Sprout’s commitment to sustainable business practices. The brand has a ten-year sustainability action plan underpinning its commitment to sustainability and creating technology that enhances its customers’ worlds, not just today, but into the future.

“Reducing our carbon impact is a major focus for Sprout,” said Mr Caddy. “We are constantly measuring and tracking our results to ensure that we are always improving and meeting our environmental objectives.”

Sprout will continue to work with One Tree Planted when it launches its new range of biodegradable phone cases in August, with the brand planting one tree for every case sold in-store or online.

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Artisan Aesthetic Clinics adds Euphoria Cosmedic Clinic

Vita Group (ASX: VTG) has acquired Euphoria Cosmedic Clinic on the Gold Coast under its Artisan Aesthetic Clinics brand. Founder of Euphoria and highly skilled registered nurseRachel Gregory will join the team at Hope Island Road on Tuesday 4 Maybringing her significant cosmetic injectables expertise to the clinic. 

With more than 24 years of medical experience including 15 years in aesthetic treatments, Rachel has established herself as one of the Gold Coast’s most respected cosmetic injectors, known for delivering natural looking results in a professional, friendly and caring wayThe clinic has a particular focus on delivering premium cosmetic injectable treatments including anti-wrinkle, dermal filler and PDO threads.

Maxine HorneVita Group’s Chief Executive Officer, said: “We are very pleased to welcome Rachel to the Artisan teamShe will add significant value to our Hope Island Road clinic, expanding the clinic’s capability in the field of cosmetic injectables and further reinforcing the premium, personalised experience we provide to our clients.”

Artisan Aesthetic Clinics launched in 2018 with the opening of Artisan Racecourse Road in Brisbane, Queensland. Through its focus on appointing a team of highly-skilled clinicians to deliver holistic treatments and technologies in a premium environment, the brand has quickly established itself as one of Australia’s leading cosmetic clinic networks.

Artisan currently operates 20 clinics across Australia, three of which are on the Gold Coasta high-demand location for non-invasive cosmetic treatments in Australia.

Artisan Aesthetics Group – clinic network

Queensland

  • Artisan Racecourse Road, Hamilton 
  • Artisan Gasworks, Newstead
  • Artisan Rosalie Village, Rosalie
  • Artisan Fortitude Valley
  • Artisan Bulimba
  • Artisan Maroochydore
  • Artisan Hope Island Rd
  • Artisan Kenmore
  • Emetheni, Burleigh Heads 
  • The Bradford Clinic, Toowoomba
  • Face Today Mediclinic, Cairns
  • HC Medical, Robina

New South Wales

  • Artisan Balmain
  • Artisan Mosman  
  • Lily Room, Chatswood 
  • Coco Skin Laser Health, Newcastle

Australian Capital Territory

  • Artisan Bruce  
  • Artisan Woden 
  • Artisan Gungahlin

Victoria

  • Pamper Medical Skin Clinic, Geelong 
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Sprout accessories achieves ISO certification

Vita Group’s Sprout accessories brand has been awarded two Best Practice ISO certifications, strengthening its reputation as a best-in-class manufacturer and leading provider of technology accessories in Australia.

The certifications – Best Practice Quality Management System (ISO9001) certification and Best Practice Environment Management System (ISO14001) certification – are based off international standards set by the International Organisation for Standardization. They demonstrate that an organisation’s product or service meet the expectations of its customers and reflect Sprout’s commitment to sustainability and creating technology that enhances the world not just today, but into the future.

To achieve ISO9001 and ISO14001, the business met a comprehensive set of requirements which it must now continue to meet to maintain certification. ISO certification delivers significant business benefits including improved customer satisfaction, cost reduction, improved legal compliance and risk management, and importantly, environmental benefits for Sprout and for its suppliers.

For Sprout General Manager, Ben Caddy, achieving ISO certification was an important step in the brand delivering its ten-year sustainability action plan which aims to address key elements across the end-to-end product value chain.

“At Sprout we are always aiming to improve our customer experience and quality standards, and ISO ensures we do that,” he said. “ISO9001 enables us to demonstrate our ability to provide products and services that consistently meet regulatory requirements, whilst ensuring the smooth operation of our business and exceeding our customers’ expectations. Another major focus for Sprout is to reduce our carbon impact,” Mr Caddy continued. “The standards in ISO14001 help us to define the right targets and measure and track our results to ensure that the business is constantly improving and meeting our environmental objectives.”

Sprout’s ten-year sustainability action plan involves implementing key initiatives including sourcing recyclable materials for packaging and product development, continuing to drive ethical and socially responsible supply chains, reducing carbon emissions, and designing more sustainable multi-use and eco-friendly products.

The brand is already underway in implementing these initiatives, recently launching a campaign in partnership with One Tree Planted that will see it fund the planting of ten trees for every product sold online from 21 March to 29 June. To date, Sprout has funded the planting of nearly 2,600 trees and is aiming for 10,000 trees planted by the end of June to help One Tree Planted’s reforestation efforts following the 2019/20 Australian bushfires.

Sprout is also set to move to 100% recyclable packaging towards the middle of 2021 which will include switching from foam to recycled pressed cardboard, removing non-recyclable plastic windows, and extensive use of bamboo pulp in packaging.

Compostable phone cases are also in development and due to launch later in the year. These cases will see 90% biodegradation of plastic material within 12 weeks in commercial compost systems or 12 months if composted at home.

Mr Caddy said ISO certification will ensure Sprout is held accountable for these environmental initiatives as well as its sustainability targets. It will also ensure the business is continuously improving its manufacturing and environmental management systems to the benefit of its customers and the world around it.

“ISO certification is extremely important to the business as it ensures we have the tools, processes and systems to meet our business targets,” he said. “ISO certification also places the business in a constant state of improvements so that we can not only show improvement year-on-year, but also regularly monitor our important sustainability objectives and put the processes in place to achieve them.”

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Artisan Aesthetics Group reaches 20 clinic milestone with new acquisition  

Artisan Aesthetics Group (AAGcontinues to grow with the acquisition of Coco Skin Laser Health on 19 February 2021, bringing its network to 20 clinics across Queensland, New South Wales, the Australian Capital Territory and Victoria. 

Located in the beautiful harbour city of Newcastle, New South Wales, Coco Skin Laser Health has been a fixture in the local community for nearly 10 years, building a strong reputation for helping clients to look and feel more confident through beautiful, healthy skin. 

The clinic’s experienced team of 15 is comprised of dermal therapists, cosmetic nursesdoctorsand the front of house team. The Coco team will join Artisan and will continue their focus on creating personalised treatment plans containing a combination of therapies to support clients with their skin health and wellness goals. The experienced clinicians use non-surgical techniques and combination therapies to help clients to manage the signs of ageing and sun-damageAt Coco, the aim is to enhance their clients’ best features, improve their complexion, and lift and tone sagging skin. 

As part of the Artisan network, Coco Skin Laser Health will continue using industry leading clinic management software program, cosmedcloud™, and the team will gain access to clinical training through Artisan’s Clinical Education and Training division. The clinic, which has experienced strong growth post-COVID with a high volume of new clients, will continue to offer an extensive menu of treatments including laser and light therapies and cosmetic injectables including biostimulator treatments such as platelet rich plasma (PRP), while benefiting from Artisan’s ongoing investment in the latest treatments and technologies.  

Vita Group CEO, and founder of Artisan Aesthetic Clinics, Maxine Horne, said she is excited to mark the group’s 20th acquisition and welcome Coco Skin Laser Health to the group as it continues to establish itself as a leader within the premium end of Australia’s aesthetics industry, operating a national network of 70 premium clinics over the next five years.  

Coco Skin Laser Health is an excellent addition to our portfolio. As with Artisan, the clinic and its team are known for delivering exceptional, personalised servicewith a combination of treatments that achieve high-quality results for their clients. We are excited to welcome them to the Artisan family and to extend Artisan’s service offering further. 

Artisan Aesthetics Group – clinic network

Queensland

  1. Artisan Aesthetic Clinic, Racecourse Road, Hamilton 
  2. Artisan Aesthetic Clinic, Gasworks, Newstead
  3. Artisan Aesthetic Clinic, Rosalie Village, Rosalie
  4. Artisan Aesthetic Clinic, Fortitude Valley
  5. Artisan Aesthetic Clinic, Bulimba
  6. Artisan Aesthetic Clinic, Maroochydore
  7. Artisan Aesthetic Clinic, Hope Island
  8. Artisan Aesthetic Clinic, Kenmore
  9. Emetheni, Burleigh Heads 
  10. The Bradford Clinic, Toowoomba
  11. Face Today Mediclinic, Cairns
  12. HC Medical, Robina  

New South Wales

  1. Artisan Aesthetic Clinic, Balmain
  2. Artisan Aesthetic Clinic, Mosman 
  3. Lily Room, Chatswood 
  4. Coco Skin Laser Health, Newcastle 

Australian Capital Territory

  1. Artisan Aesthetic Clinic, Bruce  
  2. Artisan Aesthetic Clinic, Woden 
  3. Artisan Aesthetic Clinic, Gungahlin

Victoria

  1. Pamper Medical Skin Clinic, Geelong  
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Vita Group delivers positive FY20 result in challenging conditions

Vita Group (ASX: VTG) today reported a robust result for the year to 30 June 2020, despite significant change and disruption, including Telstra remuneration changes in its information and communication technology (ICT) channel from 1 July 2019 and the group-wide impact of COVID-19 from March 2020.

The group delivered record revenues of $773.1 million, a three per cent increase on prior year. Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding the impact of AASB 16 (implemented during the period) for comparative purposes, increased nine per cent to $49.9 million. Earnings before interest and tax (EBIT) grew seven per cent to $37.2 million. The result was underpinned by strong performance in the ICT channel (particularly up to March 2020), growth and improved productivity in the skin-health and wellness (SHAW) channel, and a proactive response to COVID-19.

There were several non-recurring items in the result, including the net benefit of the Federal government’s JobKeeper subsidy, after top-up payments to team members, and revisions to the carrying values of some tangible and intangible assets, liabilities and provisions.

Underlying EBIT (excluding the impact of non-recurring items) increased four per cent to $36.1 million. Net profit after tax (NPAT) decreased eight per cent to $22.4 million as a result of AASB 16 (a $1.6 million adverse impact) as well as a higher effective tax rate following the inclusion of non-deductable, non-recurring charges.

Vita ended the period with net cash of $24.1 million as a result of solid operating cash flows, disciplined capital management and a focus on liquidity during COVID-19. Operating cash flows after tax were $41.1 million, with $19.1 million of capital expenditure directed towards additional clinics in the SHAW channel, retail ICT store refits, and further IT investments. Net financing cash flows were $11.9 million, reflecting lease payments ($11.5 million), debt repayments ($8.8 million), dividends paid ($6.5 million), all offset by proceeds from borrowings ($12.8 million) and the group’s dividend reinvestment plan ($2.0 million).

Whilst the trading environment continues to be uncertain, the board resolved to resume dividend payments in line with the easing of COVID-19 restrictions in many parts of the country, following cancellation of the FY20 interim dividend in March 2020. It determined to pay a fully-franked final dividend of $3.9 million, equating to 2.4 cents per share, representing a H2 payout ratio of 50 per cent of profits after tax. The final dividend is payable on 25 September 2020 to shareholders on record as at 11 September 2020.

The board also determined to reinstate the full remuneration of each of the Non-Executive Directors and the Chief Executive Officer, effective 22 June 2020. The remuneration of other members of the leadership team has also been reinstated with effect from that date.

 

($m unless otherwise stated) FY20 FY19 Change
Group Revenue 773.1 753.7 3%
Information & Communication Technology (ICT) 752.0 739.3 2%
Skin-Health & Wellness (SHAW) 20.1 13.7 47%
Other 1.0 0.7 43%
Group gross profit 212.5 229.7 (7%)
Group gross profit % 27.5% 30.5%
Group EBITDA (pre-AASB 16) 49.9 45.8 9%
Information & Communication Technology (ICT) 84.9 79.3 7%
Skin-Health & Wellness (SHAW)            (1.9)        (3.7) 49%
Other          (33.1)       (29.8) (11%)
Group EBIT 37.2 34.7 7%
Information & Communication Technology (ICT) 78.9 75.0 5%
Skin-Health & Wellness (SHAW)            (7.0)          (6.7) (4%)
Other          (34.7)      (33.6) (3%)
Non-recurring items            (1.1)                –  –
JobKeeper subsidy         (10.2)                –
Once off expenses 9.1             –
Underlying group EBIT (excluding non-recurring items) 36.1 34.7 4%
Information & Communication Technology (ICT) 73.2 75.0 (2%)
Skin-Health & Wellness (SHAW)           (5.8)          (6.7) 13%
Other         (31.3)        (33.6) 7%
Group NPAT 22.4 24.3 (8%)
Earnings per share 13.71 cps 15.04 cps (9%)
Underlying earnings per share 13.75 cps 15.04 cps (9%)
Full year dividend ($m) 3.9 14.9 (74%)
Interim dividend                          – 5.2 cps (100%)
Final dividend 2.4 cps 4.0 cps (40%)

FY20 in Review

COVID-19

The group proactively managed the impacts of COVID-19 to protect the business for the short and long-term. Its Business Continuity Plan ensured strict adherence to government legislation and focused on mitigating risk in areas including health and safety, inventory supply, continuity of service and responsible value creation for customers.

Measures were taken to protect Vita’s financial position, including the previously announced cancellation of the FY20 interim dividend, deferral of non-essential capital projects, cost reduction initiatives, and temporary rent arrangements agreed with landlords. Vita’s board and leadership team (except for the CEO) took temporary remuneration reductions and CEO, Maxine Horne, voluntarily suspended her base salary, effective from 1 April 2020. Several support team members volunteered temporary remuneration reductions, agreed to work reduced hours, or utilised annual leave. The group welcomed assistance from the Federal government in the form of the JobKeeper wage subsidy, which provided a net $10.2 million benefit, after top-up payments to team members, and was instrumental in protecting jobs. It also appreciated the support it received from landlords in the form of rent assistance.

During the period, Vita Group made the decision to exit its SQDAthletica men’s athleisure business in order to focus on its strategic priorities in the ICT and SHAW channels.

Information and Communications Technology

ICT revenues increased two per cent to $752.0 million and EBITDA, excluding the impact of AASB 16, was $84.9 million, up seven per cent on the prior year.

The retail ICT division delivered a five per cent increase in revenues due to a continued focus on consulting and delivering products and services which create value for customers. Device revenue was strong, particularly from the start of the period up to March 2020 and the impact of COVID-19. The retail team leveraged its capacity and capability during COVID-19 to support Telstra to keep customers connected to mobile and fixed networks, which is critical during lockdown periods.

Vita’s accessories brand, Sprout, continued its positive contribution to growth and profitability through ongoing innovation across a range of product categories and progressed its strategy to expand in its business-to-business segment outside of the Vita network.

The business ICT division continued to complement the retail ICT store network by providing solutions to small-to-medium and large business customers. The Telstra Business Technology Centres and the enterprise business achieved significant productivity improvements, whilst supporting steady demand during COVID-19 as business customers enabled their employees to work remotely.

Skin-Health and Wellness

Revenues in the SHAW channel increased to $20.1 million, a 47 per cent uplift despite a six-week closure from March 2020 due to COVID-19 restrictions, and EBITDA improved to a $1.9 million loss, compared with a $3.7 million loss in the prior year.

Continued expansion of the clinic network through acquisitions and greenfield additions contributed to the result, with the group ending the period with 21 clinics, 13 of which were Artisan branded. Organic growth was achieved during the period, which accelerated after the clinics re-opened in May 2020, following further team member upskilling in consulting and delivering value to clients, as well as significant productivity improvements as a result of further embedding of Vita’s operating rhythms and disciplines.

The channel continued to invest in the Artisan Aesthetic Clinics brand through awareness and marketing campaigns and the launch of the Artisan branded app, all of which assisted to drive client visits and support retention. Further enhancements to the group’s proprietary software solution, cosmedcloud™ were made, which will support the group’s intention to distribute this unique client management software offering to the broader medical category.

FY21 Outlook

The environment in which Vita competes will remain challenging with the impacts of COVID-19 continuing to affect the economy nationally. Vita will continue to focus on its core ICT and SHAW businesses, consulting with customers to create value and delivering exceptional outcomes for them.

In ICT, key areas of focus will be further improvements in the productivity of the store portfolio, both organically and through selective acquisitions and divestments. The group’s strategic partnership with Telstra will continue to be of key importance as the industry shifts towards an omni-channel ecosystem and the role of retail continues to change.

The Sprout accessories business will deliver further innovation through product development in profitable categories such as multi-purpose audio, wireless charging and outdoor accessories, whilst continuing to expand its distribution channels.

In SHAW, the focus includes driving further organic growth and productivity improvements from the clinic portfolio, building on the gains already made through leveraging Vita’s consulting capabilities and strong operating disciplines. Performance improvement will be supported by the continued evolution of cosmedcloud™. The group will look to add additional clinics to the network in FY22 and beyond.

Vita Group CEO, Maxine Horne commented, “I’m immensely proud of Vita’s performance in what has been a year of significant change and disruption. Despite the challenges presented by COVID-19, we have achieved a very solid result in an unprecedented year. Our achievements are, more than ever before, a result of our dedicated and hardworking Vita peeps, who have shown flexibility and commitment and have acted in line with our Vita values. They have maintained a steadfast focus on looking after our customers and I cannot thank them enough for everything they have done and continue to do to make Vita ‘a great place to be.’

While COVID-19 will undoubtedly continue to impact Australia and our economy in FY21, our highly capable team, strong balance sheet, and clear strategy for growth should maximise our ability to successfully and responsibly deliver value over the long-term. I want to sincerely thank our entire Vita community – from team members and customers, through to suppliers and investors – for their support during FY20 and for standing with us during COVID-19. Your flexibility and support have been instrumental in helping us to successfully manage its impact to date and position Vita strongly for the future.”

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Vita Group announces changes to the group leadership team

Vita Group today announced the resignation of Chief Financial Officer (CFO), Andrew Leyden, effective 31 October 2020. After ten years with Vita Group, Andrew is taking the opportunity to pursue a career in a new industry. The Vita Board would like to thank Andrew for his contribution to Vita Group and to wish him all the very best in the future

In line with the group’s succession plan, the board has made several internal appointments to the Group Leadership Team (GLT), to support the extension of the skillset and diversity of the senior leadership team. The board’s selection process included consideration of the suitability of each of the appointees and the board believes that each one has the necessary skills, experience, and qualifications to successfully fulfil the requirements of their respective roles.

The following appointments are effective 1 November 2020:

  • Andrew Ryan has been appointed to the role of Chief Financial Officer and will lead the finance function, as well as property and facilities. Andrew has been with Vita Group since 2012 in the role of Financial Controller, working closely with Andrew Leyden and brings significant experience and skill set from his previous role at Vita as well as other roles spanning the retail, financial services, manufacturing and insurance sectors in companies across Australia and the United Kingdom.
  • Justin Maskey has been appointed to the role of Chief Technology Officer and will lead the IT division. With a 19 year tenure at Vita Group, Justin has driven the evolution of the group IT function to support business outcomes, including the establishment of core analytics capability, the use of data as a competitive advantage and several key group-wide initiatives. Justin has built a strong team of IT professionals who provide sustainable and innovative technology solutions to the group.
  • Rebecca McLeod has been appointed to the role of Chief Strategy and Communications Officer and will lead strategic planning, communications and public relations, marketing, and procurement, as well as the group’s sustainability and philanthropy programs. Rebecca has worked with Vita for the last ten years in senior project and communications roles, and prior to that held senior leadership and management consulting roles in industries including retail, banking, insurance, and mining.
  • George Southgate has been appointed to the role of Chief Legal and Risk Officer and will continue in his function as Company Secretary, leading the group’s risk management and governance program. Prior to joining the group in 2018, George worked in private practice acting for various clients in the government and private sector specialising in litigation with a focus on commercial disputes and health regulation.

The new members of the Group Leadership Team complement the existing capability and tenure, with Pete Connors, Chief Operating Officer and Kendra Hammond, Chief People Officer continuing in their integral roles.

Vita Group Chief Executive Officer, Maxine Horne said, “Whilst we’re all sad to see Andrew go, we’re very grateful for his significant contribution to the group over his ten years and are supportive of Andrew’s decision to make a career change in a new industry. Andrew has been instrumental in building a strong future for the group, and the board and I thank him very much for this.

I’m very proud of the strong talent pool that we have built at Vita Group within our senior leadership team. We have a clear and robust succession plan, which has enabled us to make these new appointments to the GLT, bringing diversity as well as breadth and depth of capability. Congratulations to each of our newest chiefs – I look forward to watching your careers continue to flourish at Vita.”

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Vita Group provides COVID-19 update

Background

On 19 March, Vita Group announced to the market that it had enacted its Business Continuity Plan (BCP) to manage the impact of COVID-19, anticipating an impact to footfall and revenue, and also communicated the cancellation of its planned interim dividend. On 24 March, the group announced temporary remuneration reductions for all members of the Board and Group Leadership Team, and the temporary suspension of CEO, Maxine Horne’s base salary – all proactive moves to protect the business during the crisis. On 25 March, the group announced the temporary closure of its skin-health and wellness (SHAW) clinics, effective from 26 March for an indefinite period, in line with Australian Government restrictions.

Group Update 

Vita has been agile and responsive in managing the impacts of COVID-19 to its business. Through its rigorous BCP framework, Vita has worked to address and mitigate key areas of impact and risk, including health and safety, continuity of service to customers, supply of stock, and financial security. The group has welcomed assistance from Federal government in the form of the JobKeeper wage subsidy and has self-assessed that it is eligible to receive JobKeeper payments. Payments have been made to all eligible employees who nominated Vita Group as their primary employer and the group has received its first JobKeeper payments.

ICT Update

The group’s network of Telstra retail stores and Telstra Business Technology Centres is deemed an ‘essential service’ in relation to COVID-19, and all points of presence have remained open and trading to date, operating under social distancing rules and supporting customers. Available capacity and capability from stores have been leveraged, with team members supporting Telstra with services to keep customers connected.

As anticipated, retail stores have seen a reduction in footfall; and have also been impacted by disruptions to supply of stock – both of which have resulted in a year-on-year reduction in retail ICT revenues in April. The team is working to offset these impacts by maximising value from every customer consult.

In business ICT, demand has remained relatively steady due to business customers enabling their workforces to work from home.

Across the ICT channel, Vita has continued its emphasis on productivity, whilst preserving jobs – with a focus on maintaining a skilled, customer-focused team, to position the channel to emerge strongly on the other side of COVID-19. Vita expects that demand for its products and services will increase as restrictions ease and as shopping centre traffic flow returns.

Skin-Health and Wellness Update

In line with the Australian government roadmap, and relevant state and territory directions allowing registered health practitioners to operate, the clinic network commenced re-opening from the week beginning Monday 11 May, with branded and non-branded clinics offering services in line with state-based directions and legislation.

Vita has maximised the down-time by continuing the development of in-house software, cosmedcloudTM, and launching the new Artisan App, which allows clients to interact with Artisan digitally, enabling the online booking of appointments, tracking of personalised treatment plans, and the purchase of prescribed skincare products.

The group is taking a measured approach to standing its SHAW channel back up and is opening clinics in line with demand from a strong waiting list. To ensure the safety and wellbeing of team members and clients, strict COVIDSafe policies and procedures have been implemented, including the strengthening of already stringent hygiene and infection control protocols for front of house and client treatment areas. With strong foundations in place and solid client demand, the SHAW channel is well-positioned to optimise the opportunities ahead.

SQDAthletica Update

To support a focus on the group’s strategic priorities in the ICT and SHAW channels, Vita decided to exit its SQDAthletica men’s athleisure business. Whilst significant progress has been made in establishing the brand, its contribution to the group’s total revenue is immaterial.

Support Team Update

Most support team members have been working from home in line with government guidelines and will gradually return to the Brisbane-based support centre in line with easing of restrictions. In addition to the stand-down of SHAW channel employees, several support team members volunteered temporary pay reductions, agreed to work reduced hours, or have taken annual leave – which have supported a reduction in expenses. There has been a reduction in some support roles as Vita begins to adapt its work structures to a post COVID-19 environment.

Financial Strength

The group is balancing the optimisation of trading outcomes with the important issue of supporting the safety of its team members and customers. This includes continuing to drive efficiencies, working closely with suppliers on cost initiatives, and having constructive discussions with landlords regarding temporary rent arrangements.

Working capital has been carefully managed, and capital projects, except those in progress, have been deferred. It is expected that investment projects will gradually resume as trading improves. Vita’s balance sheet and liquidity remain in a strong position and the group does not anticipate any short-term requirements for new equity or debt financing.

Vita Group Chief Executive Officer, Maxine Horne said: “Like many Australian businesses, Vita Group has not been immune to the impacts of COVID-19, which is an economic issue as much as it is a health issue. We went into COVID-19 with an amazing culture and team, an established BCP, a strong balance sheet, and a clear strategy – all of which have equipped us to deal with COVID-19 and will allow us to emerge with strength from the crisis. The recent months have provided the leadership team with the opportunity to reflect on our business, understand the impacts of COVID-19 and a potential recession, examine what’s essential and what isn’t, and make the necessary changes to ensure a stronger mid to long term future. I’m buoyed by the prospect of returning to what will be ‘the new normal.’

“I believe that businesses that emerge from crises in a strong position are those that anticipate changes, make the necessary decisions, are agile, and importantly can execute. This all comes down to the skillset, commitment and dedication of the team, and I have been delighted with the way our team has responded. They have shown flexibility, support and a real passion for managing our business through the challenges. I’m always impressed with our Vita peeps, but now more than ever before, I’d like to thank the team for doing an extraordinary job.

This announcement has been authorised for release by VTG’s Board of Directors.

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Vita Group begins re-opening its SHAW clinics

Vita Group will commence gradually re-opening its network of Artisan branded and non-branded skin-health and wellness clinics from this week, following their temporary closure on March 26 under Australian Government guidelines implemented to manage the spread of COVID-19.

In line with updated COVID-19 guidelines in Queensland, the Australian Capital Territory and Victoria, all branded and non-branded clinics in these states and territories will reopen to clients from this week (week beginning Monday 11 May). The group hopes to follow very soon with opening of New South Wales clinics following government guidelines.

Vita Group Chief Executive Officer, Maxine Horne said: “We are very pleased to re-open the majority of our skin-health and wellness clinics. Of course, the health and safety of our people, clients and communities remains our number one priority and our team have worked hard during our temporary closure period to heighten our already strict hygiene and infection control protocols. We will continue to monitor the evolving situation surrounding COVID-19 and act in accordance with government guidelines and in a manner that is in the best interest of our people and clients.”

Artisan Aesthetics Group – clinic network

Queensland

  • Artisan Aesthetic Clinic, Racecourse Road, Hamilton
  • Artisan Aesthetic Clinic, Gasworks, Newstead
  • Artisan Aesthetic Clinic, Rosalie Village, Rosalie
  • Artisan Aesthetic Clinic, Fortitude Valley
  • Artisan Aesthetic Clinic, Bulimba
  • Artisan Aesthetic Clinic, Maroochydore
  • Artisan Aesthetic Clinic, Hope Island Road
  • Artisan Aesthetic Clinic, Kenmore
  • Emetheni, Burleigh Heads
  • London Cosmetic Clinic, Southport
  • The Bradford Clinic, Toowoomba
  • Face Today Mediclinic, Cairns
  • Face Academy, Milton
  • HC Medical

Australian Capital Territory

  • Artisan Aesthetic Clinic, Bruce
  • Artisan Aesthetic Clinic, Woden
  • Artisan Aesthetic Clinic, Gungahlin
Victoria
  • Pamper Medical Skin Clinic, Geelong
New South Wales
  • Artisan Aesthetic Clinic, Balmain
  • Artisan Aesthetic Clinic, Mosman
  • Lily Room, Chatswood
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Vita Group announces temporary closure of its SHAW clinics

In response to the Australian government’s stage two restrictions around COVID-19 announced to the public late in the evening of Tuesday, 24 March, Vita Group (ASX: VTG) today announces that it will temporarily close its network of aesthetic clinics within its Skin-Health and Wellness (SHAW) channel.

Under the Australian government’s new restrictions, beauty services, which include Vita Group’s network of aesthetic clinics, have been directed to suspend trade from midnight Wednesday, 25 March. As a result, Vita’s 21 clinics, including 13 Artisan branded and eight non-Artisan branded clinics, will be closed from Thursday, 26 March – for an indefinite period.

Impacts arising from this decision are currently being assessed.

Vita’s Information and Communications Technology (ICT) channel has been deemed an essential service by the Australian government and remains open for business.

Vita Group Chief Executive Officer and Executive Director, Maxine Horne said: “We are disappointed, but we understand the government’s decision to temporarily suspend beauty services. The safety and wellbeing of our people, clients and communities must take priority. Our focus over the next 24 hours is on supporting our team members through this difficult period, and ensuring our clients continue to receive the high levels of service they are accustomed to. The Vita leadership team is proactively managing its business continuity plans in these unprecedented circumstances with the aim of placing the business in the best possible position for our long-term future.

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Artisan continues Queensland expansion

Artisan Aesthetics Group (AAG) is continuing to expand its network of Artisan branded clinics in Queensland with the opening of Artisan Kenmore in Brisbane on Saturday, 14 March 2020. The clinic is AAG’s 13th Artisan branded clinic nationally and eighth in Queensland. 

In keeping with the brand’s unique bespoke design aesthetic, Artisan Kenmore pays tribute to the area’s Scottish heritage, referencing the tartan of the clans who first settled there, with finely crafted timber elements a nod to its history as a timber source for much of Brisbane. 

The clinic is operated by a team of highly experienced cosmetic nursesdermal therapists and doctors, all of whom pride themselves on working closely with their clients to develop tailored treatments that will help them achieve their personal skin goals. 

From cosmetic injectables to skin needling, laser and light-based therapies, body contouring, and medical-grade facials, Artisan Kenmore clients will be able to experience the very latest, premium aesthetic treatments.

Vita Group CEO and founder of AAG, Maxine Horne said: “We’re excited to continue to build our network of Artisan branded clinics in Brisbane with the opening of Artisan Kenmore. The team bring considerable expertise to the wider group and we look forward to introducing more clients to our unique Artisan offering and being a part of their journey to ‘master their artistry’ by helping them look and feel their confident best.

AAG currently operates 21 aesthetic clinics across Queensland, New South Wales and the Australian Capital Territory. Since launching in November 2018, AAG has expanded its network through a combination of acquisitions and greenfield clinics and will continue to grow its portfolio to a national network of premium clinics.

Artisan Aesthetics Group – clinic network

Queensland

  • Artisan Aesthetic Clinic, Racecourse Road, Hamilton
  • Artisan Aesthetic Clinic, Gasworks, Newstead
  • Artisan Aesthetic Clinic, Rosalie Village, Rosalie
  • Artisan Aesthetic Clinic, Fortitude Valley
  • Artisan Aesthetic Clinic, Bulimba
  • Artisan Aesthetic Clinic, Maroochydore
  • Artisan Aesthetic Clinic, Hope Island Road
  • Artisan Aesthetic Clinic, Kenmore
  • Emetheni, Burleigh Heads
  • London Cosmetic Clinic, Southport
  • The Bradford Clinic, Toowoomba
  • Face Today Mediclinic, Cairns
  • Face Academy, Milton
  • HC Medical, Robina and Palm Beach   
New South Wales
  • Artisan Aesthetic Clinic, Balmain
  • Artisan Aesthetic Clinic, Mosman
  • Lily Room, Chatswood
Australian Capital Territory
  • Artisan Aesthetic Clinic, Bruce
  • Artisan Aesthetic Clinic, Woden
  • Artisan Aesthetic Clinic, Gungahlin
Victoria
  • Pamper Medical Skin Clinic, Geelong
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