Abano Healthcare, the listed medical and dental centre investor, expects an uplift in annual earnings as a strong performance from its New Zealand dental chain offsets a flat performance from its Australian counterpart.
Underlying profit, which excludes one-time items, is expected to be between $8.2 million and $9 million in the year to May 31, the Auckland-based company said in a statement. That compares with a year-earlier profit of $5.6 million in 2015 for its continuing businesses, or $8.8 million including earnings from two businesses it has sold, the company said.
Abano is growing its chain of dental businesses across Australia and New Zealand, where it aims to capture 10 per cent of the $11 billion of revenue. So far this financial year it has acquired 13 dental practices, which are expected to add about $22 million in additional annualised gross revenue, and it has opened one greenfield practice in Christchurch. As at March 31, the company had 186 practices generating annualised gross revenue of $250 million and said it has several more acquisitions planned before the end of the financial year.
Its Lumino The Dentists chain in New Zealand increased same-store sales 3 per cent for the nine months ended February 29. Its Australian Maven Dental Group had a 4 per cent decline in same-store revenue as a weakening economy in Queensland offset growth in NSW and Victoria.
Abano said its audiology joint venture in Australia is expected to "show a good uplift" from the year earlier with same-store sales growth of about 4 per cent so far this financial year.