Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Abano achieves second year of 75% profit growth

Abano achieves second year of 75% profit growth

July 28 (BusinessDesk) - Abano Healthcare, the medical investor fending off a hostile takeover from its biggest shareholder, posted a 75 percent jump in full-year profit, beating guidance and allowing it to maintain dividend payments for a sixth straight year.

Profit climbed to $6.1 million in the year ended May 31, from $2.8 million a year earlier, the Auckland-based company said in a statement. Sales climbed 2 percent to $274 million.

That's the second year in a row that profit has climbed 75 percent and the company said today it expects to list earnings again in 2015, allowing it to lift dividends starting in the first half of the current year. The shares rose 1.5 percent to $6.15 and are rated a 'buy' based on two analysts who follow the stock, having declined about 3.5 percent this year while the nation's benchmark stock index gained.

Abano's trans-Tasman dental business was the biggest contributor to revenue growth in the latest year, along with the company's Australian audiology joint venture and it said today that "growth through acquisitions is still the key focus for the dental sector as we build scale in this very large and attractive market."

"The increasing size of the dental group is providing a stronger negotiating position with suppliers and more economies of scale are being achieved," it said.

The weak Australian dollar had eroded returns from dental, slicing about $14.3 million off gross revenues and $1.8 million off underlying Ebitda, versus a year earlier. Abano's Bay Audio Australian joint venture reduced its losses in the latest year while its Bay Audio Asia group "is still focussing on achieving a monthly Ebitda breakeven performance," the company said.

Abano will pay a final dividend of 13.7 cents a share, making 21 cents for the year, with a record date of Aug.11.

At a special meeting on June 13, dissident shareholders Peter Hutson and James Reeves lost in an attempt to oust chairman Trevor Janes, who has led opposition to their takeover attempts. Hutson and Reeves control close to 20 percent of the company.

Hutson owns the other 50 percent of Abano’s Bay International audiology business and would have gained full control for a nominal sum under last year’s aborted takeover. He was removed from the board last September.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news