Abano Healthcare Group has today released its audited
financial results for the year ended 31 May 2012, reporting
record revenues of $206.4 million, up 18% from the previous
year (FY11:$174.8 million).
Earnings Before Interest, Tax, Depreciation and
Amortisation (EBITDA) were up 30% to $25.7 million (FY11:
During the 2012 financial year, a number of strategic
investment decisions were made which will yield significant
benefits for the long term profitability of Abano. These
included an accelerated dental acquisition programme in New
Zealand and Australia, funded by an increase in debt
facilities, as well as investment into dental IT platforms.
There was also the start up of the PET CT radiology centre
in Auckland, which was commissioned in late FY11, and the
development of the new Millennium radiology clinic which
will open in late 2012 on Auckland's North Shore.
While these investments all provide strong growth platforms
for the company and will generate long term profitable
cashflows, the associated costs had an immediate and
negative impact on the Profit and Loss account in the 2012
financial year. As a result, while Net Profit After
Tax (NPAT) at $1.6 million was in line with forecast, it
was down on the previous year's NPAT of $11.5 million which
also included the one off $12.3m gain on sale of National
produced an EBITDA of $27.3 million (FY11: $20.6
million1), and an operating profit of $3.0 million (FY11:
Managing director of Abano, Alan Clarke, said: "Abano grew
strongly over last year, producing a solid result that was
in line with our market guidance. Revenues were at their
highest level ever and, as expected, we have seen strong
cash flow growth at EBITDA.
"We are now well down the track to rebuilding our bottom
line earnings towards the levels achieved prior to the sale
of our New Zealand audiology business in FY10. In line with
this, we expect to see continued improvement at the bottom
Alan continued: "During the 2012 year and into the first
quarter of FY13, we made a number of decisions which will
ensure that our company continues to advance and perform
successfully into the future. This included the
divestment of our brain injury rehabilitation business,
which settled just after year end, in June 2012, and the
subsequent acquisition of the outstanding 30% shareholding
in Dental Partners.
"This portfolio rationalisation has seen the release of
funds from a business that was highly dependent on public
funding in a limited scale market, and increased investment
into a fast growing, private income business which is in a
very large, scalable market.
"Dental is, and will remain, our primary revenue and income
generator, and our accelerated acquisition programmes
continue in both Australia and New Zealand. Pleasingly,
good organic growth is also being seen in New Zealand and
will be increasingly important as we enter our second year
of national television advertising and online marketing for
Lumino the Dentists.
"Radiology in New Zealand is expected to deliver increasing
returns, as demand for our PET CT cancer service builds.
There will be additional, new growth from the Millennium
radiology clinic which is expected to commence in October
this year. Audiology is making progress, with growth in
Australia and steady development in Asia. We are on
track to see this business breakeven, as expected, in two
to three years time.
"We expect another solid and stable year of performance
from our orthotics business and Aotea Pathology, both of
which will continue to work within their DHB contracts to
provide the best possible, quality service for their
clients and the communities they serve.
"Over 45 % of Abano's revenue is now generated from outside
of New Zealand. While New Zealand will remain our biggest
geographical base in FY13, domestic growth opportunities
are eclipsed by the sheer size of the Australian and Asian
healthcare markets. This means our offshore growth will be
faster than domestic growth, and by 2015, it is estimated
that over 70% of Group income will be derived
The Abano Board has confirmed an annual dividend of 21
cents per share for the fourth year in a row, demonstrating
the Board's confidence in the underlying growth of NPAT.
Therefore a fully imputed final dividend of 13.th
Summary of Key Dates:
10 August 2012 Record date for
17 August 2012 Confirmation of
issue price for shares under the DRP (Shares will be issued
at a 2.5% discount on the closing price)
24 August 2012 Payment date of
dividend/Issue of shares under the DRP