9 May 2017

Abano on track to meet profit forecast

11:32 am on 9 May 2017

Abano Healthcare Group says it is on track to meet its full year profit forecast with a stronger pipeline for growth.

A file photo of a chair in a dentist's surgery

Photo: 123RF

The dental company, which owns the Lumino the Dentists and Australia's Maven brand, said the net profit was expected to rise more than 27 percent to between $9.7 million and $10.5 million, in the year ending in May, when adjusted for the sale of its half share in an audiology business.

Revenue was expected to in a range of $277m and $281m.

"FY17 continues to be a positive year for Abano as we invest into the growth and development of our businesses, particularly our trans-Tasman dental group which is benefiting from economies of scale and increasing market share," chair Trevor James said.

The company bought another 25 dental practices in the year to March, which was expected to add more than $34m in annualised gross revenue to the group.

It said the forecast was in line with an independent report by Grant Samuel, prepared in response to the recent failed, hostile, part takeover bid by shareholder, Healthcare Partners.

Abano is seeking $600,000 in costs from the partners, and excluded those costs from the full year forecast.

It said the underlying profit was expected to be in a range of $30.7m, to $31.9m, which was a more accurate reflection of its performance.

The full year result is expected to be released by the end of July.

Get the new RNZ app

for ad-free news and current affairs