Stonking profit for Abano Healthcare

Tuesday 28th July 2009

Medical services franchise investor Abano Healthcare has reported a recession-busting stonker of a profit result for the year to May 31 and substantially increased its credit lines to fund future activity.

Net profit after tax was up 24% at $9.7 million, on an explosion in cashflows from investments in dental practices, audiology retailers, and radiology clinics in New Zealand, Australia, and wealthy parts of Asia.

Revenues year on year rose 51% to $187.2 million, and allows Abano to report record 35% growth in earnings before interest, tax, depreciation and amortisation (ebitda), achieved despite significant start-up costs for new initiatives being included in the operational accounts.

A final dividend of 12 cents a share has been declared, with a blended imputation credit of the old and new company tax rates, payable on August 19. The dividend reflects Abano's policy to pay 50% of NPAT as dividends and takes earnings per share to 21 cents.

The result is "a the top end" of the company's revised earnings guidance, says Abano chair Alison Paterson. The company is a major player in audiology retailing and dental care in New Zealand and is expanding into Australia and Asia in search of future growth. It is refocusing in New Zealand on opportunities in the radiology sector, while continuing to expand its Bay Audio franchise in Australia.

Exciting audiology opportunities are emerging in Australia and Asia, says Paterson, citing the company's success with technologically differentiated retail mall-based audiology clinics.

The company also declared that it had this month raised its line of credit facility with the ASB Bank from $20 million to $100 million after balance date, giving Abano "long term facilities of approximately $130 million and net debt of NZ$82.2 million.

Abano shares closed last night at $5.35, up 0.8%, having climbed 18% in the last three months.

Businesswire.co.nz

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