Abano Healthcare says it still plans to buy more dental clinics in Australia despite increasingly depressed consumer confidence across the Tasman.
The listed company says the economies on both sides of the Tasman are weak and that is affecting demand for its services.
Abano expects its after-tax profit to fall to between $200,000 and $700,000 in the six months to the end of November 2011, compared with $2.2 million in the same period a year earlier.
The company's managing director Alan Clarke says the results reflect the "flat" conditions and he expects that to continue for another six to twelve months.
When one off costs are stripped out, Abano expects its underlying half year profit will be between $1 million and $1.5 million, compared with $2.8 million in the same period a year earlier.
However, he says Abano is still interested in acquiring dental clinics and wants to add annually between eight and ten practices in New Zealand and 15 to 20 in Australia.
That would add $30 million in dental revenues to Abano's income.
Mr Clarke acknowledges it is an ambitious target but says that at the start of November the company had already made 18 acquisitions and added $26 million to its revenue stream.
Meanwhile, Alison Paterson has stepped down as Abano's chair but will remain on the board as independent director for the next year.
She is replaced by Trevor Janes.
