Abano Provides Full Year Guidance

Abano Provides Full Year Guidance

For the twelve months ending 31 May 2016

· Abano expects a year on year revenue and profit increase from its continuing businesses, primarily driven by a strong New Zealand dental performance; continuing improvements from the audiology joint venture; and a stable performance from radiology.

· NPAT and Underlying NPAT from Abano’s continuing businesses are expected to increase by more than 50% from the previous year.

· The FY16 guidance reflects the change in Abano’s portfolio following divestment of two businesses in FY15.

Abano Healthcare Group (NZX: ABA) has today provided guidance for the financial year ending 31 May 2016, forecasting an increase in revenue and profit from its continuing businesses. The improving operating results are primarily being driven by a strong New Zealand dental performance offsetting a flat Australian dental performance; ongoing improvements from the audiology joint venture; and a stable performance from radiology.

The Company expects gross revenue of $301 million to $305 million and revenue of $211 million to $215 million. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) are expected to be $25.2 million to $26.4 million. Including Abano’s AUD$1.8 million share of Bay Audio Australia’s unrecognised deferred tax asset, which is likely to be recognised in the current financial year, Net Profit After Tax (NPAT) is expected to be $9.4 million to $10.2 million.

Abano also reports on underlying earnings which the Board believes provides a more accurate portrayal of the Company’s true performance. The Company’s Underlying EBITDA is expected to be between $26.1 million to $27.3 million, resulting in an Underlying NPAT between $8.2 million to $9.0 million.

Abano’s dividend policy remains that, subject to relevant factors at the time, including working capital and growth, the annual dividend paid will be between 50-70% of Underlying NPAT.

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