KEY POINTS:
Abano Healthcare Group expects to see continued growth as it enters a new expansion phaseoverseas.
The specialist healthcare investor-operator yesterday announced a full-year net profit after tax figure of $7.8 million - a 56 per cent increase on the previous year's result - on the back of good
returns from all sectors, particularly audiology, dental and radiology.
The result included one-off non-recoverable costs of $500,000 incurred from the failed takeover bid by Crescent Capital Partners and an unsuccessful partial takeover by Masthead, as well as adjustments relating to foreign exchange movements, interest rate swaps and Australian tax.
Chairwoman Alison Paterson said the core business had continued to grow despite the "distraction" of external corporate interest.
Abano has made several new acquisitions since the start of its present financial year, including Australian audiology retail chain King Hearing. The purchase from Siemens Hearing Instruments adds a further four permanent and 22 satellite clinics to its Bay Audio network in Australia.
Its New Zealand presence has also grown to 52 permanent and satellite clinics over the 2008 financial year.
Paterson said its dental sector contributed significantly to revenue and operating profit, and was poised to continue to perform well in the new financial year. Its New Zealand dental network now numbers 33 following a string of acquisitions and the consolidation of several smaller clinics. The group expects to make a further eight to 10 acquisitions in the 2009 financial year.
Entry into the Australian dental market in late June, meanwhile, is forecast to bring in annualised revenues of more than A$15 million ($19.4 million). The partnership with Dental Partners has already seen the acquisition of nine practices across the Ditch, with another 10 expected to be added in the coming year.
Abano's radiology business also expanded with the opening of a second clinic in Auckland's Ascot Central last month.
Based on current performance and future outlook, Paterson expected the company to achieve earnings before interest, tax, depreciation and amortisation of $28.9 million and a net profit after tax of $10.5 million next year.
A final dividend of 5c a share was declared. Abano shares closed at $ $4.65, up 11c.
ABANO
Year to May 31
Revenue
2008 - $123.9m
2007 - $89.5m
Operating profit
2008 - $19.2m
2007 - $10.2m
Net profit
2008 - $7.8m
2007 - $5.0m