20 Dec 2013

Abano Healthcare half-year profit up 31%

11:22 am on 20 December 2013

First half profit for Abano Healthcare rose 31%, largely because its greenfields audiology businesses dropped by two-thirds.

Net profit for the six months ended November rose to $2.8 million from $2.2 million, even though sales fell 1.7% to $106 million.

A recent failed takeover attempt by Archer Capital and former Abano director Peter Hutson shaved about $400,000 off the bottom line.

The operating profit of the dental business, which accounts for nearly 70% of gross revenues, fell 16.3% while Abano's share of losses from the audiology business fell to $1.9 million.

With more than 50% of Abano's sales now coming from Australia, managing director Alan Clarke said the high New Zealand dollar shaved $7.5 million off revenue and was one reason that dental profits fell.

However, Mr Clarke says the Australian audiology business is now close to break-even ahead of plan.

Although the Archer/Hutson takeover attempt led to several other higher offers from third parties, Mr Clarke said the board had decided none were worth advancing.