The company, which runs laboratory and pathology services in Dunedin and the rest of the country, released its annual financial results to the public yesterday.
It recorded a loss for the 2025 financial year of $2.16m, compared to 2024’s bombshell loss of $15.8m.
The company has been grappling recent controversies, including a scathing health and disability commissioner’s report after its pathologists in Invercargill failed to detect the cancer in two different biopsies for a retired nurse, shortly before her death in early 2022.
Meanwhile, a former staff member told the Otago Daily Times last month that the working conditions were ‘‘insane’’, with constant staff burnout and limited resources.
Awanui Labs chief executive Anoop Singh said the better result was due to careful management of costs.
‘‘Like many healthcare providers across New Zealand, we are operating in a system under pressure from increasing demand, workforce shortages and rising costs.
‘‘Despite this, Awanui has continued to focus on building the workforce capability, services and infrastructure that is required for this critical part of New Zealand’s health system.
‘‘Our latest financial results show a narrowing loss — a reflection of careful management of costs within a challenging funding environment.
‘‘Awanui delivers over seven million diagnostic results annually across New Zealand and we remain focused on supporting a sustainable, future-focused health system with strong diagnostic capability at its centre.’’
Apex union, which represents nearly all private laboratory workers, managed to secure a 9.5% wage increase for its Awanui workers last year after protracted bargaining sessions.
Apex advocate Omar Hamed noticed in the most recent financial statements staff expenses had been largely the same.
This suggested staff were continuing to leave Awanui, he said.
‘‘They are losing a lot of experience who are going to go to work in either better owned and operated laboratories in other locations, or who are leaving medical laboratory science altogether. So, the wage increases may be being offset by smaller personnel numbers.’’
Mr Hamed said because of the staff shortages, Awanui was not on the priority list for many students searching for lab work.
‘‘They are lower on their list of places that people want to go and work. That’s causing significant delays into the health system.’’
Despite their losses, Awanui was in a ‘‘better position’’ than first appeared the case in the financials, Mr Hamed said, largely because of its contracts with Health NZ Te Whatu Ora.
‘‘When we start bargaining again later this year, we’ll be wanting to continue to close that gap between what our members in Awanui are earning and what our members who are employed by Te Whatu Ora and Te Whatu Ora Labs are earning, which continues to be 15% to 25%.’’
