21 Dec 2011

Abano Healthcare predicting profit growth in 2013/14

7:08 am on 21 December 2011

Abano Healthcare expects its profit to be flat in the coming year following a big drop in its half-year profit to November.

The company announced on Tuesday that it made $600,000 profit in the period, 72% down on the same period in 2010.

It attributed the drop to the sale of its audiology business as well as some one-off costs associated with its IT system and a new debt facility in australia.

Managing director Alan Clarke says that situation will continue but he expects to see net profit after tax to grow strongly going into the 2013/14 financial year.

The listed private healthcare company has been moving away from its reliance on public funding, expanding its dental and radiology businesses here and in Australia and Mr Clarke says those areas are performing well and are expected to grow 20% over the coming year.

He says health is a resilient sector, even though it is not completely immune to economic movements, and it's been pleasing to see all the business across Abano performing better than they did in the 2010 year.

However, he says Abano is very wary of what is happening in Europe in terms of credit lines and consumer confidence and so is cautious going into the latter part of the current financial year and the next.

Shares in Abano Healthcare ended Tuesday's trading up 18 cents or almost 5% at $3.85.