Abano sees smaller annual sales on strong kiwi dollar, takeover bid hit bottom line
Abano Healthcare [NZX: ABA] , the healthcare investor, anticipates smaller annual revenue due to the strength of the New Zealand dollar and lower net profit after a failed takeover attempt last year from a consortium which included its biggest shareholder.
The Auckland-based company expects net profit of between $4.5 million and $5 million in the year ending May 31, down from a forecast $5.4 million by Grant Samuel in an independent adviser's report when Abano was facing a takeover in November. The company has previously put a $400,000 price tag on takeover bid by Archer Capital and Abano investors Peter Hutson and James Reeves. Annual profit will still be higher than the $2.8 million it reported a year earlier.
Annual revenue is expected to be between $209.8 million and $211.8 million, down from a forecast of $213.8 million in the Grant Samuel report, though up from $207 million in 2013. It said a strong New Zealand dollar against its Australian counterpart had depressed the forecast results.
Abano said underlying net profit, which strips out one-off gains and losses, will be between $5.8 million and $6.3 million, compared to $4.5 million a year earlier.
"The forecast in reported and underlying NPAT for the FY14 year is the result of an improving dental performance along with Bay Audio's solid progress as it moves towards achieving a breakeven result," managing director Alan Clarke said in a statement. "The acquisition pipeline is still strong, although acquisition settlements are expected to be slower during the final quarter due to vendor requirements."
The statement was released after the close of trading, with the shares unchanged at $6.55. The stock has increased 2.8 percent this year.