Abano Healthcare expects to bear a short-term cost from investment in its offshore regional management teams and offices, but to benefit from the work in the medium to long term.Managing director Alan Clarke told the company's annual meeting today that Ab
Abano Healthcare expects to bear a short-term cost from investment in its offshore regional management teams and offices, but to benefit from the work in the medium to long term.
Managing director Alan Clarke told the company's annual meeting today that Abano was in a growth mode and would continue to be a leading healthcare investor and provider in the Australasian and Asian region, and the partner of choice for clinicians under its co-invest and build strategy.
Chairman Alison Paterson said the company was expecting revenues of $85.8 million to $86.8 million in its first half for the six months to the end of November, with underlying earnings between $2.6 million and $2.9 million.
The second half was expected to be well down on the first due to a range of factors, including Abano's unexpected and unplanned sale of its investment in National Hearing Care in September.
Another factor was accelerated changes to the company's management structures in Asia and Australia in its Audiology unit, which would have a one-off cost in the second half, Mrs Paterson said.
Also, the second half-year was always affected by Christmas and Easter holiday periods, while the economies on both sides of the Tasman remained sluggish.
Changes in ACC referrals were still having an impact on several businesses, and trading in those businesses would take some time to work back to previous levels.
Mr Clarke said Abano had been moving its invested funds away from New Zealand government funded healthcare contracts through district health boards and ACC.
It was focusing more on the private payment, fee for service, healthcare market, with private revenue sources now more than 60 percent, up from 25 percent in 2003.
But the company would always retain some level of New Zealand government contracts, and would have a steadily growing contribution from Australian government subsidies in its dental and audiology businesses, Mr Clarke said.
Abano also expected the proportion of its revenue sourced from outside this country to rise from current levels of around 40 percent, as the company continued its international expansion through dental and audiology.
Abano shares were down 7c to $5 in late morning trading, having ranged between $4.85 and $6.25 in the past year.
