Sharechat Logo

Abano first-half profit falls on expansion costs; sales rise

Tuesday 20th December 2011

Text too small?

Abano Healthcare, which invests in specialist health clinics, confirmed its weaker-than-expected first half-profit, down $1.5 million from $2.8 million, even as sales lifted 18 percent, after it acquired dental practices in New Zealand and Australia.

The company’s first-half revenue was $102.0 million, which is right in the middle of the $101.5 million to $103.5 million forecast last month, up from $86.7 million a year earlier. Its underlying net profit, which strips out accounting changes and acquisition costs was $1.3 million, down from $2.8 million a year earlier. Earnings per share were 3.62 cents from 10.51 cents in the same period last year.

“We have focused on growth, particularly in dental where we acquired 20 dental practices with over $28 million in annualised revenue added in Australia and New Zealand in the first six month period,” said Alan Clark, managing director. “Our Radiology group saw improving demand across all modalities with good growth over last year’s results. Our Orthotic Group also grew with the new lower South Island contract, and our pathology and brain injury businesses produced steady results.”

The loss in income comes from the sale of National Hearing Care in December 2010, ongoing investment in IT infrastructure, and facility fees associated with an additional debt facility in Australia, Clark said.

The health clinic investor expects rapid growth beyond this year as governments look to private healthcare providers to mop up excess demand, and is also looking to grow offshore sales to account for at least half of its revenue by 2015.

Abano will pay an unchanged interim dividend of 7.3 cents per share on Jan. 27.

Abano shares rose 3.8 percent to $3.80 though on trading of just over 1,000 shares. They have been trending lower since hitting $6.80 in September 2009.

  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