KEY POINTS:
Abano Healthcare Group, which fought off a takeover bid during the year, is reporting a 56 per cent increase in annual net profit to $7.8 million.
The result for the year to the end of May was achieved on revenue up 38 per cent to $123.9m, and compared with net profit the previous year of $5m.
Abano said today that the result was driven by increased returns from all sectors, supported by organic and acquisition growth, particularly in the audiology, dental and radiology areas.
Earnings before interest, tax, depreciation and amortisation (ebitda) were up 68 per cent to $23.3m, after allowing for non-recoverable takeover costs of $500,000.
A fully imputed final dividend of 5c per share will be paid, taking the total dividend for the year to 18cps.
Chairwoman Alison Paterson said that based on current performance and the future outlook, Abano was expecting ebitda of $28.9m for 2009 and net profit of $10.5m, as previously advised.
"We note, however, that while directors consider the company to be reasonably insulated from economic conditions, the extent of the current downturn must be regarded as a risk factor."
In March, a $5.20 per share takeover bid for Abano by Australian private equity investor Crescent Capital Partners lapsed after falling short.
Crescent Capital received acceptances for 20.2 per cent of shares, including those sent after the deadline, which would have increased its stake to 38.20 per cent.
Today Paterson said new acquisitions and growth initiatives included a key Australian audiology retail chain, two new dental acquisitions, entry into the Australian dental market and the opening of a new, state of the art radiology clinic, including specialist breast imaging.
The company was entering a new phase of expansion into overseas markets while continuing its development in this country, she said.
The acquisition of Queensland-based King Hearing in Australia had added four permanent and 22 satellite audiology clinics to the Bay Audio network, and mitigated the risk of entering new markets.
In this country, acquisitions and the opening of new audiology clinics in the 2008 financial year lifted the total Bay Audiology network to 52 permanent and satellite clinics nationwide. Recently, a three clinic Auckland practice joined the group.
In the dental sector, New Zealand-based Lumino The Dentists expanded in line with the previously announced increased targets, with nine successful acquisitions during the financial year.
A recent acquisition, Dental Designs, was a dental laboratory specialising in making high end ceramic crowns and veneers for placement by cosmetic dentists.
Abano now had 33 clinics in its New Zealand dental network, with a further eight to ten acquisitions expected in the 2009 financial year.
Abano previously announced it had entered the Australian dental market in late June through a partnership with Dental Partners, with the initial acquisition of nine practices.
Up to 10 more practices were expected to be added to the network by the end of the 2009 financial year.
Abano's share price was up 11c to $4.65 in mid-afternoon trading, down from a year high of $5.15 in January but up on the year low of $3.30 last September.
- NZPA
