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Listed healthcare investor and operator Abano Healthcare Group has posted half-year results ahead of guidance after a strong performance in November.
Net profit for the six months ending November 30 was $2.8 million, far below last year's $14.2 million. However, with the exclusion of gains from the sale of ElderCare, the latest result was more than double the corresponding period's $1.1 million profit.
The result was also ahead of market guidance of between $1.8 million and $2.1 million provided in October.
Managing director Alan Clarke said: "One-off costs expected from the merger and set-up of Aotea Pathology in Wellington in November have come in below expectations.
"In the first six months of the financial year we continued to achieve our stated growth target for Lumino Dental of one new practice every two months. Three new practices were acquired ... with further acquisitions to be announced in the new year."
As the Lumino network - which now has 22 practices - expanded, the benefits from economies of scale and shared resources were starting to reach the bottom line, he added.
Earnings before interest, tax, deprecation and amortisation (trading profit) for the period were $6.3 million, up from $2.7 million last year.
Chairman Alison Paterson said steady progress had been made with both organic and acquisitive growth.
Abano's shares closed up 10c yesterday at $2.27.
