29 Jul 2014

Abano's profit rose 75 percent

8:27 am on 29 July 2014

Abano Healthcare's annual net profit rose 75 percent and was at the top of the range the company had guided to.

The company's profit rose to $4.9 million in the 12 months ended May, although the company said the underlying result was up a more modest 35 percent.

The main earner, the dental business in New Zealand and Australia, also lifted earnings but the strong New Zealand dollar shaved $1.8m off the division's near $21m operating profit.

But the major reason for the profit increase was that the company's audiology joint venture trimmed its losses at the operating level by about $5 million to a little below $3 million and the company says it's now profitable on a monthly basis.

Abano's managing director, Alan Clarke, said the management of the joint venture in Australia is improving same-store performance.

The company bought 19 dental practices in the year and is in the process of buying four to six more practices so far this year.