KEY POINTS:
Abano Healthcare still expects to post a record annual net profit of up to $11 million, as its businesses expand despite tough economic times.
The company, which has seen off two takeover offers, still expected annual revenue of between $170m and $180m and net profit of between $10m and $11m, chairwoman Alison Paterson told shareholders at the annual meeting today.
Last year's net profit of $7.8m was on the back of revenue of $123.9m.
"The extent of the current economic downturn is unprecedented and it represents a material risk factor for all New Zealand businesses," Ms Paterson said.
"Because of its nature, healthcare is reasonably protected from economic conditions; however, there are some areas of private healthcare discretionary spending which will be affected."
A number of long-term public healthcare contracts were expected to help insulate Abano against reduced demand in the private sector.
Despite that, the company would stick to its strategy of reducing its reliance on "politically influenced public healthcare contracts" in favour of private healthcare businesses, managing director Alan Clarke said.
Some planned acquisitions had taken longer than expected to settle, but all existing businesses had improved during the first half of the year against the previous year, Ms Paterson said.
Abano had funding and debt facilities in place to meet immediate growth objectives, but would review its balance sheet to ensure its borrowing remained prudent.
The company was focused on audiology in New Zealand, Australia and Asia, dental in New Zealand and Australia, and radiology in New Zealand.
Abano said earlier today that it planned to buy six audiology businesses in Singapore and Hong Kong for about $3m.
Abano's board opposed planned takeover offers from Masthead Portfolios and then Crescent Capital in the last year, arguing that the company's future value was higher than the offers had proposed.
Shares in Abano were up 5c, or 1 per cent, at $4.55 in early afternoon trading.
- NZPA
