Abano Delivers Record Half Year Result in Line with Guidance

Abano Delivers Record Half Year Result in Line with Guidance

Results for the six months to 30 November 2017

• Abano confirms record half year result in line with guidance

• Result driven by acquisition growth in the dental business, improving dental same store sales growth and a solid performance in radiology

• Interim dividend of 16 cents per share declared

Abano Healthcare Group Limited (NZX:ABA) has today reported a lift in both revenue and underlying earnings as it delivered a half year result in line with its November 2017 guidance.

The company has benefitted from acquisition growth in the dental business and a continuing trend of improving same store sales growth in both New Zealand and Australia.

Based on unaudited management accounts, Abano has reported gross revenue[i] of $158.7 million (HY17: $138.9m) and revenue of $133.2 million (HY17: $116.8m).

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA[ii]) were $17.9 million (HY17: $16.5m), with Net Profit After Tax (NPAT) of $6.0 million (HY17: $5.9m).

The result is after non-cash expenses including accelerated depreciation relating to the decision to relocate Lumino’s largest practice to a new location in Auckland in early 2018 and a $0.2 million loss on sale on the associated divestment of its small non-core laboratory business.

Abano also reports on underlying earnings[iii] which provides the basis of Abano’s dividend policy. The Company’s Underlying EBITDA was $18.3 million (HY17: $16.8m), resulting in an Underlying NPAT of $6.7 million (HY17: $6.3m).

The directors have declared an interim dividend of 16 cents per share on all shares (HY17:16cps), including those issued under the recent 1 for 5 rights offer.

Chair of Abano, Trevor Janes, commented: “The record half year result reflects Abano’s continued focus on growing its share of the $11-billion trans-Tasman dental market and our goal to be a leading provider of dentistry in Australia and New Zealand. Our strategy of dental practice acquisitions and selected greenfield openings, combined with realising organic growth opportunities, is continuing to deliver earnings growth.”

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Abano Healthcare Group is listed on the NZX and owns and operates one of the largest dental networks in Australasia, comprising Lumino the Dentists in New Zealand and Maven Dental Group in Australia.

[i] Gross revenue is a non-GAAP financial measures and includes Australian dental revenues before payment of dentists’ commissions.
[ii] EBITDA is earnings before interest, tax, depreciation and amortisation and is a non-GAAP financial measure
[iii] Underlying earnings are reported for both Net Profit After Tax (“NPAT”, a GAAP compliant measure) and EBITDA and exclude gains/losses arising on sale of businesses, IFRS adjustments and impairments, including their tax effect. These are the measures used within the Company to evaluate performance, establish strategic goals and to allocate resources and provide the basis of Abano’s dividend policy.
More information on gross revenue and underlying earnings is available on the Abano website at www.abano.co.nz/underlyingearnings.

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