Australasian dental and radiology group Abano Healthcare continues to pursue transtasman dental acquisitions, while its full-year profit was boosted by its $20million gain on the sale of audiologist Bay International.
Revenue for the year to May grew from $265.8million last year to $297.1million, with after-tax profit up from $4.5million last year to $28.4million, which included a gain on sale of $20.2million on the $32million sale of Abano's 50% stake in Bay International Ltd.
Abano's chief executive Richard Keys said the dental sector was Abano's most significant investment and its primary growth opportunity.
Abano was continuing to target a 10% share of the $11billion revenue transtasman dental market, he said.
As of May 31, the dental division consisted of 102 Lumino The Dentists practices in New Zealand and 86 Maven Dental Group practices in Australia, generating gross annualised revenues of more than $254million.
Mr Keys said full-year gross dental revenues were $241.9million. Lumino contributed $NZ105.4million and Maven in Australia $A124.6million, which accounted for 81% of Abano's total gross revenue.
Mr Keys said during the past year Abano acquired 18 practices, delivering about $28million in additional annualised gross revenue, of $A10.8million and $NZ16.7million, opened a new Christchurch practice and merged nearby practices.
Mr Keys said revenues were up, primarily driven by a strong New Zealand dental performance, improvements from the audiology joint venture and a stable performance from the radiology business.
A final dividend of 20c per share was set, taking the full-year dividend to 30c.
Forsyth Barr broker Lyn Howe said the result was at the top end of Abano's earlier guidance and in line with the brokerage's expectations.
She noted the divestment of Bay International had materially lowered debt levels, leaving net debt at $NZ82million, which provided sufficient room to continue its dental acquisition plans.
"Abano has already acquired four [dental] practices since financial year end,'' Mrs Howe said.
While Australian same-store dental sales were down 3.6%, Mrs Howe said New Zealand dental produced a strong result, with sales growth of more than 2.7% and margin expansion.
"The New Zealand business continues to have positive momentum,'' she said.
Mr Keys said the Australian economy remained challenging and same-store revenue for Maven was mixed in Australia.
"We have a supportive banking relationship and a strong balance sheet, and are well positioned to continue growing our businesses and increasing their earnings,'' he said.
