Healthcare company announces larger than expected results

By NZPA

Monday 3rd December 2007

Healthcare company Abano announced half year net profit after tax of $3.8 million, up 35% on the corresponding period a year ago.

Results for the six months to November 30 were above forecast, the company said today.

Revenue was up 42% to $59.2m and Ebitda (earnings before interest, tax depreciation and amortisation) was $11m, up 74%.

An interim dividend of 8.5cps, fully imputed, was to be paid in January 2008.

It can only be declared once the current Masthead offer expires because the Masthead offer precludes Abano from declaring a dividend during the offer.

Masthead, Abano's largest shareholder, originally offered $3.85 a share in a bid to take its 19.9% stake to 51%, then later raised the offer to $5.

The level of uptake for the Masthead bid has been very low with acceptances for less than the 302,000 of the 7.1m shares Masthead required by December 10 to succeed with its partial takeover bid.

"While Masthead has stated that larger shareholders tend to accept offers on the last day, the board notes that Abano's two largest shareholders subject to the offer, have publicly stated that they considered Abano to `have good growth prospects'.

"One of the larger shareholders, Rotorua Energy Charitable Trust, has publicly stated that it would not be selling into the Masthead offer," chairwoman Alison Paterson said.

Four dental clinics and six audiology clinics in New Zealand and Australia were purchased in the past two months. The full impact of which will be seen in the second half of this financial year, the company said.

Paterson said the board expected a significantly stronger second half result.

"The results for the full year are now expected to be above our previous market guidance."

Abano has operational cash flow and banking facilities sufficient for the planned capital expenditure and acquisition growth programme, Paterson said.

Abano's share price was unchanged at $4.70 around 1.30pm today.

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