This well-managed company has enjoyed five consecutive quarters of double-digit growth
By: Galit Solomon
Company: Nova Leap Health Corp, NLH-V, Toronto Stock Exchange
President & CEO: Chris Dobbin
Headquarters: Halifax, Nova Scotia, Canada
Number of locations: 8 locations and 9 service areas in Vermont, New Hampshire, Massachusetts, Rhode Island and Nova Scotia
In current role: 3 years
Place of birth: New Brunswick, Canada
Relevant Industry Experience: Director & Co-Owner, Earth Angels Living Assistance Inc.
In 2017, the United Nations released a report suggesting that the world’s aging population will more than double by the year 2050, from 962 million worldwide, to 2.1 billion. It’s a clear indication that the need for services like the ones offered by Nova Leap Health Corp. will grow substantially over the next three decades as well. “This is one of the fastest growing industries based on an aging demographic,” explains the company’s Founder and CEO, Chris Dobbin. “We are in the homecare services space. Our caregivers go into a person’s home and provide care. We focus primarily on non-medical services – dementia care, companionship, personal care, transportation and medication reminders.”
A Chartered Accountant by trade, Dobbin was inspired to launch Nova Leap in 2015 after watching his father-in-law struggle with Parkinson’s disease. Nova Leap has a total of 8 locations so far in 9 service areas including Vermont, New Hampshire, Massachusetts and Rhode Island in the U.S., plus one Canadian location in Nova Scotia. “The prevalence of chronic conditions within the aging population is what is driving the industry.”
For the fifth consecutive quarter, Nova Leap has experienced double digit growth. “It’s been the result of our acquisition strategy. We are good at identifying, evaluating and closing on opportunities.” In fact, the company has experienced tremendous growth over the last 12 months. “We have been acquiring businesses at a fairly rapid pace.” Dobbin says the company employs a proven strategy that has worked with each acquisition. “We enter secondary markets that have a need for our service, with less competition than the large urban centres. We also tend to buy businesses that have about 75 employees, most of whom work in the field.”
Dobbin cites an aging population, a proven strategy and consecutive quarter over quarter growth as three reasons why investors should consider this stock now. As a bonus, he adds, this is a great time to invest in the home care sector. “Current market conditions are great for Nova Leap because it’s an industry that is non-cyclical.”
Dobbin plans to continue to grow the company in both the U.S. and Canada in the coming years. Like with any other business, he says there are always challenges to overcome. “Being a small, but fast-growing company, we are competing with a lot of other companies, so our challenge is bringing attention to our story.”
Part of Nova Leap’s success is in the way the company vets its prospects. When choosing businesses to acquire, it considers specific criteria. “Most of the companies we consider have a 10 to 15-year history in the industry. The businesses are profitable and have a great caregiver base. There’s a solid operations team.” Each team also consists of certified professionals like Registered Nurses and non-certified but highly qualified personnel.
According to Dobbin, 85 to 90 per cent of the aging demographic prefers staying at home for as long as they can rather than moving to an assisted living facility. The home health care industry in the US is a $90 billion industry. Dobbin says the future of the sector is secure and investors can expect to see further growth in 2019.