Abano Healthcare today warned its first half profit will be much lower than a year ago, as it switches its focus from aged care to less capital intensive healthcare businesses.
Speaking at the firm's annual meeting, Abano chairman Jim Syme said the sale of its Eldercare business in July woulddent its bottom line in the half year to November.
"The core financial performance for the six months ending on 30 November, 2005, will be well down on last year, as it will exclude returns from the aged care business which was sold on 13 July, one month into the current financial year," Mr Syme said.
But with several new acquisitions under its belt, the listed healthcare investor is confident of a return to form in the full year.
Abano recently announced plans to add Bay Audiology and the Orthotic Centre to its portfolio from October.
Those purchases, and returns from its existing businesses, should see Abano exceed last year's pre-tax profit in the year to May 31 and introduce an annual dividend payout, Mr Syme said.
"We believe we now have a strong portfolio which will deliver balanced revenue streams, generate an improving return on investment that will be above our cost of capital and provide consolidated and sustainable bottom line profitability," managing director Alan Clarke said.
Two new independent directors, Trevor Janes and Susan Paterson, were today elected to the board following the retirement of Maurice Kidd and Clint Teague.
Shareholders also approved the acquisition of 70 per cent of Bay Audiology, with an option to acquire the remaining 30 per cent in 2010.
Abano Healthcare shares were unchanged at $2.25 by early afternoon.
