Expansion plans have also been shelved in favour of organic growth.

The Vita Group has been transitioning from a predominantly telecommunications company to a beauty therapy business through its Artisan brand and was hit by a wall of issues during the financial year, not least Covid, which impacted visits, but also vaccination policies and absenteeism.

Then there as the divestment issues associated with the sale of its telecommunications business to Telstra, establishment costs for Artisan, the flood impacts in NSW and Queensland and what the company said was “higher than expected turnover, including some founders from acquired clinics”.

It said Artisan would need continued investment and work to standardise the product offering.

“Despite the headwinds experienced, Vita is encouraged by early positive indications from the implementation of Artisan’s growth programs within its evolved business model,” the company said.

It said that since April, total future bookings from clinics in the enhanced client experience program, were up 25 per cent.

“In an environment of continued uncertainty Vita believes it is prudent to maintain its focus on organic growth via execution of programs within Artisan’s evolved business model, whilst increasing marketing investment to capitalise on available capacity within the existing clinic network,” it said.

“While Artisan’s evolved business model has delivered early positive indications, significant work remains to realise outcomes from best practice execution.

“Subject to successful execution of growth programs and reduced headwinds, Vita is targeting monthly underlying EBITDA from continuing operations to breakeven during 2024.”