Abano Healthcare profits halve
Profits fall as dental replaces audiology as the company's main moneymaker.
Abano Healthcare Group made just over half the profit it did last year as dental replaced audiology as the company’s main moneymaker.
Stripping out the one-off $12.3 million gain from the sale of Abano’s shareholding in National Hearing Care, the medical services company investor made a net profit of $2.3 million ($4.4 million) for the year to May 31 on revenue of $174.8 million ($178.1 million).
Abano managing director Alan Clarke said the result reflected the first year of no income from the New Zealand audiology group, which was sold in November 2009.
Natural disasters in New Zealand and Australia had depressed earnings by about $500 thousand, he said.
Flow-on effects of the global financial crisis were still being felt, with greater pressure on publicly funded contracts, a more restrictive ACC environment and a slowing in demand for some elective private healthcare encounters.
“The effects of the global financial crisis are also now more obvious in Australia, with a related slow-down in consumer confidence and expenditure,” said Mr Clarke in a statement to the NZX.
Mr Clarke was more upbeat about the outlook for the second half of the year ahead.
"Looking forward, we are expecting similar economic and confidence conditions to exist through the first half of our 2012 financial year. However, we anticipate an improvement in the business climate on both sides of the Tasman in the second half of the year,” he said.
A fully tax-paid dividend of 13.7 cents per share will be paid on August 24, bringing the total dividend for the year of 21 cents per share, in line with the last two years.
Shares in Abano Healthcare Group last traded at 4.4, having fetched between 5.59 and 4.3 in the last year.
Georgina Bond
Wed, 27 Jul 2011
Wed, 27 Jul 2011
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Abano Healthcare profits halve
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