Abano overseas revamp to have short-term cost

Abano Healthcare managing director Alan Clarke. Photo / Martin Sykes

Abano Healthcare expects to bear a short-term cost from investment in its overseas 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 yesterday 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.

Chairwoman 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 because of 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, 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.

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 and healthcare market, with private revenue sources now more than 60 per cent, up from 25 per cent 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, Clarke said.

Abano shares closed up 2c at $5.09 yesterday.

- NZPA