Sharechat Logo

Daily ShareChat: Abano Healthcare

By Jenny Ruth

Tuesday 9th February 2010

Text too small?
 Jenny Ruth

Abano Healthcare's first-half results show the company's underlying businesses have been hurt by the tough economic conditions but the results are still "surprisingly robust," given the vulnerablilty of many of the businesses to discretionary spending, says McDouall Stuart.

Excluding the $76.6 million net proceeds from the New Zealand Bay Audiology sale, the net profit was $3.4 million, down from $4.1 million last year, although the latest result includes only a five-month contribution from the sold business.

Operating profit fell slightly by 2%, implying that margins have tightened over the last six months and that breaks Abano's record of improving operating profit every year since 2006, the broker says.

The audiology sale has left the company with no New Zealand debt and a gearing ration of 15% relating to Australian dental debt after the company returned 52 cents per share to shareholders and an under-subscribed buyback. (The buyback was under-subscribed by $28.6 million with only $17.3 million taken up.)

Abano is in a strong position to continue its growth strategy through both greenfield investment and acquisition, McDouall Stuart says.

Its remaining businesses are less mature and lower margin but present better growth opportunities. "We continue to see Abano as a solidly managed company with excellent growth prospects."


BROKER CALL:  McDouall Stuart  rate Abano Healthcare as buy.





  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Abano mulls rebel shareholder request for meeting, affirms support for Janes
Hutson fails to respond to Abano buyout offer, takeover 'rife with insider elements'
Abano steps up pressure on bidders over audiology unit price
Abano shareholders clamour for discounted stock in share purchase plan
Hutson quits Abano board after urging from other directors
Abano board questions Hutson's conflict of interest in takeover bid
Abano continues to resist takeovers, rejects approach from Archer, Hutson
Abano seeks $18.5 mln in share purchase plan
Abano shares climb to 4-month high amid prospect of takeover bid
Abano faces takeover bid after rejecting unsolicited offer