It’s not “Totally Smiles” for investors after the newly listed dental group this morning revealed full-year cashflow would miss targets outlined in its prospectus.

Totally Smiles — the trading name of dental roll-up Smiles Inclusives (ASX:SIL) — told shareholders net cashflow for the 2018 financial year would be $2.3 million less than the prospectus forecast.

Smiles now expects $7.3 million in customer receipts for the year, compare to a prospectus forecast of $9.5 million.

It burned $1.2 million cash for the year, but reported a positive result of $795,000 in the June quarter.

In response, the stock fell 3 per cent to 90c in early Monday trade — compared to its $1 issue price in April. It was trading at 93c at 10.50am AEST.

Smiles blamed “a number of factors” for the cashflow miss, including higher use of working capital to reduce loans and higher-than-anticipated acquisition costs.

Since raising $35 million in an IPO to buy 52 dental practices across the country investors have seen little change so far since the stock listed in April:

It hasn't been all smiles for shareholders since Smiles Inclusive (ASX:SIL) listed in May

Smiles also reported EBITDA earnings excluding acquisition costs would come in at a loss of $1000 “which is ahead of the prospectus statutory forecast of a $161,000 loss”.

The business was left with $2 million in the kitty at the end of June, plus debt capacity of $24.6 million.

It plans to spend $15.3 million this quarter.

Stockhead reported in June that underwriter Morgans had a $1.40 target on the stock.

Smiles competes with two other ASX-listed dental chains — 1300 Smiles and Pacific Smiles.

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