Acquisitions help Ebos to lift first-half profits 20pc

New acquisitions have paid off for medical and dental products company Ebos, helping push first-half profits up 20 per cent. Net profit increased to $4.6 million during the six months to December, on revenue of $143.4 million.

Chief executive Mark Waller said the increase had come from the bedding down of acquisitions during the period.

These include the increase in its stake in national health product marketing and distribution subsidiary Global Science to 100 per cent and the acquisition of Scientific Supplies.

Bird-flu concerns had also buoyed sales of medical gloves, masks and wipes to local hospitals, pharmacies and retirement villages beyond their average levels for the period.

Waller estimated bird flu-related sales would add an extra $1 million to turnover for the five months to March.

However, he said those infection control products were only a small contributor to group turnover dominated by hospital pharmaceuticals through subsidiary Health Support.

District health boards had already accumulated good safety stock levels of such products, but if orders went "really silly" in the event of a bird flu outbreak, there would be an eight to 10-week wait on orders assuming overseas suppliers did not have a major problem globally.

The acquisitive company was still on the outlook for opportunities to drive medium-term growth prospects and was chasing some of those "quite hard" at the moment.

Chairman Rick Christie said plans for the rest of the year were to maximise group performance "particularly now general predictions of a cooling economy and depreciating currency face most businesses".

Ebos shares closed up 5c to $4.75 yesterday.