Abano Healthcare says depressed consumer confidence on both sides of the Tasman has continued into its 2012 financial year.
The listed company says the New Zealand economy and consumer confidence remains depressed, with increasing pressure on publicly funded health contracts and a continued slow down in ACC-approved operations.
Things are little better across the Tasman where slowing consumer confidence and spending is also hitting the business.
Abano expects to post an after-tax profit of between $200,000 and $700,000 in the six months to the end of November compared with $2.2 million in the same period a year earlier.
The fall in profit will be largely due one off-costs and when they are stripped out underlying profit will be between $1 million and $1.5 million compared with $2.8 million in the same period a year earlier.
The company plans to issue a full year forecast in March once it has assessed trading over the Christmas and summer holiday break.
At this stage it expects revenue and earnings to keep growing but profits to remain flat.