Abano Healthcare's operating profit for the six months ended November was in line with expectations and at the upper end of guidance, Forsyth Barr broker Andrew Rooney said yesterday.
The company reported operating earnings of $14.9 million in the period, up 7.4% on the $13.9 million in the previous corresponding period.
Revenue was up 8.3% at $114.9 million, reported profit was up 15.1% at at $4.5 million and normalised profit (excluding one-off and abnormal items) was up 66.4% at $3.5 million.
Mr Rooney said the operating profit was underpinned by further acquisitions in the dental segment and a marked improvement in audiology.
The result was negatively affected by one-off costs of $350,000 relating to the recent High Court action and the special meeting, the $400,000 loss on sale for its orthotics business and currency translation losses.
''As flagged at its recent annual shareholders meeting, Abano lifted its dividend.''
The company would pay an interim dividend of 10c per share, a significant lift on the pcp, he said.
No guidance or outlook commentary was provided for the full year.
However, Abano had bought two dental practices post balance date, including one large practice in Australia.
''We expect a stronger second half for its continuing options, given the timing of the dental acquisitions,'' Mr Rooney said.
