Abano enjoys healthy 24pc boost in earnings

Abano Healthcare said profit rose 24 per cent amid increased demand and acquisition of new businesses which boosted sales 51 per cent.

Net income rose to $9.7 million in the year ended May 31, the Auckland-based company said yesterday. A record ebitda (earnings before interest, tax, depreciation and amortisation) of $31.5 million was also achieved, up 35 per cent year on year.

The operating profit included all the initial start-up costs of several new significant initiatives undertaken during the financial year in audiology, dental and radiology.

Sales increased to $187.2 million.

Although healthcare was "relatively sheltered", the year was one of unprecedented global economic turmoil and growth opportunities were and would continue to be affected as consumers' discretionary spending remained pressured, said chairwoman Alison Paterson.

"While Abano continues a focus on the delivery of private health services, the group has a balanced mix of private and public revenue streams and a regional geographic presence which provides us with a balanced spread of businesses in a number of economies and the ability to grow profitably in the current economic climate," she said.

New Zealand remains the company's biggest base but Australian and Asian markets now offer considerable potential, she said.

Abano yesterday announced it has added to its Asian audiology footprint with a small investment in two clinics in Malaysia.

The company will pay a second-half dividend of 12c.

- BLOOMBERG