Abano forecasts 1H sales growth, profit similar to last year
BUSINESSDESK: Abano Healthcare, an investor and operator of healthcare and medical services businesses, says first-half sales probably rose as much as 5% and profit surged even in the face of little growth in New Zealand and a downturn in Australia.
Profit in the six months ending November 30 is expected to be in a range of $1.3 million to $1.8 million, compared to $1.5 million in the first half of last year. Sales are expected to rise to between $105.4 million and $107.4 million, from $102 million, the company told shareholders at their annual meeting in Auckland.
"While there has been a limited recovery and growth in the New Zealand market in recent months, we still have not seen any significant or lasting improvements," chairman Trevor Janes says.
"We are also seeing a downturn in consumer confidence and market conditions in Australia."
That is partly offset by strong demand in Asia, though with the rider that there "is a general wariness in these markets about world economic performance and the possible effects on the Asian economies".
The shares last traded at $5.74 and have gained 37% this year. The stock is rated "outperform" based on two recommendations compiled by Reuters, with a price target of $4.46.