Wednesday 25th July 2018
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Abano Healthcare reported a 16 percent lift in annual profit on record revenue as its dental network improved performance in both Australia and New Zealand.
The company, which operates the Lumino The Dentists chain in New Zealand and Maven Dental Group in Australia, said profit rose to $12.6 million, or 50.95 cents per share, in the year to May 31 from $10.9 million, or 50.79 cents, in the prior year. Underlying profit increased 18 percent to a record $13.6 million.
Revenue advanced 11 percent to a record $259.5 million, while earnings before interest, tax, depreciation and amortisation were up 10 percent to a record $34.5 million.
The result includes a six-month contribution from its 71 percent stake in the Ascot Radiology business which was divested in February, it said. There was a one-off gain from the sale of $2.1 million.
"Abano has a strong acquisition pipeline and the capital raised in FY18 is supporting our accelerated growth strategy and allowing the company to take advantage of the significant market opportunity, particularly in Australia. Abano has delivered a strong result for the year and is well positioned to continue with its growth strategy," said chair Trevor Janes.
Abano has 225 practices across the two countries with 19 acquired in the year to May 31. The majority of acquisitions were in the Australian dental market, which is about 12 times larger than the New Zealand market and offers the biggest opportunity to grow market share. Since year-end, three large Australian practices have been acquired, which are expected to generate A$9.9 million in annualised gross revenue.
In New Zealand, Lumino delivered same-practice gross revenue growth of 3.3 percent versus a 1 percent decline in the prior year. Maven Dental Group in Australia maintained same-practice gross revenue at the same level as last year, an improvement on a 4.4 percent decline in the prior year.
The benefits of scale and investment into branded and digital marketing campaigns are helping to drive momentum, the company said.
“Technology is an important part of our strategy, allowing us to operate more efficiently, target patients more effectively and create innovative offers which keep patients coming back to our dental practices time and time again," said chief executive Richard Keys.
Abano said it will pay a final dividend of 20 cents per share, taking full year dividends to 36 cents per share.
The stock last traded at $8.63 and has shed 6.6 percent so far this year.
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