Abano Healthcare, fending off a hostile takeover from its biggest shareholder, cut 3 cents from the independent valuation it commissioned to allow for executive incentive shares while confirming a 73 per cent gain in first-half profit
Net profit after minorities rose to $5.9 million, or 27.48 cents per share, in the six months ended November 30, from $3.4m, or 16.14 cents, a year earlier, the Auckland-based company said in a statement. Revenue was confirmed at $116.8m, an 8 per cent gain.
Abano released a summary of its results earlier this month, on growth in its dental network, to underline the value of the business in the face of a partial takeover bid from Healthcare Partners, an entity owned by cornerstone shareholders Anya and Peter Hutson and James Reeves.
Healthcare Partners yesterday criticised Abano's independent adviser report as using some unrealistic assumptions which plumped up Abano's value. The target company today revised its valuation range to between $9.92 and $11.93, from $9.95 to $11.96, to reflect 45,860 restricted shares issued to management last year as part of a long-term incentive scheme. Independent valuer Grant Samuel advised that this doesn't affect its assessment of the merits of the offer, and Abano's board still recommends shareholders reject the offer.
"While the Healthcare Partners partial takeover offer has been disruptive, management continue to focus on delivering strong results and an ongoing improving performance," chief executive Richard Keys said.