| ABA |
| 19/12/2008 |
| INTERIM |
| |
| REL: 1409 HRS Abano Healthcare Group Limited |
| |
| INTERIM: ABA: ABANO HEALTHCARE HALF YEAR RESULT |
| |
| Listed healthcare investor and operator, Abano Healthcare Group, today |
| reported its results for the six months to 30 November 2008, meeting its |
| earlier guidance with a net profit after tax of $4.1 million. |
| |
| The results, based on unaudited management accounts for the six months ended |
| 30 November 2008, show revenues of $86.1 million, Earnings Before Interest, |
| Tax, Depreciation and Amortisation (EBITDA) of $14.4 million and Net Profit |
| After Tax (NPAT) of $4.1 million. |
| |
| All sectors within Abano's healthcare and medical services portfolio |
| performed well and delivered improved operating profits during the six month |
| period. The full contributions from several recent investments and new |
| initiatives will only impact in the second half of the year, and indeed some |
| will not be fully evident until the 2010 financial year. |
| |
| The company's acquisition and expansion programme continued to track to plan, |
| with growth of Abano's audiology businesses in New Zealand and Australia, the |
| acquisition of a specialist radiology business in Auckland and entry into the |
| Australian dental market through a new dental business, as well as the |
| announcement of the planned entry into the Asian audiology market. |
| |
| Chairman, Alison Paterson, commented: "It has been a pleasing first half year |
| performance for Abano, particularly given the deteriorating economic climate. |
| Our businesses delivered good results and continue to display long term |
| potential for continued growth. |
| |
| "Our strategy remains to focus on those healthcare sectors where there is a |
| proven track record and identified opportunities for continued growth, |
| particularly in dental, audiology and radiology. |
| |
| "Although some planned and originally forecast acquisitions have taken longer |
| than expected to settle, good progress has been made with other business |
| areas and acquisitions in the past six months. |
| |
| "In the first six months of the 2009 financial year, we acquired seven dental |
| practices in New Zealand, increasing the Lumino The Dentists network to 40 |
| practices nationwide. In July 2008, we entered the Australian dental market |
| through Dental Partners and have grown this network to 15 practices in the |
| past few months. |
| |
| "In audiology, we have opened or acquired 11 new clinics in New Zealand, |
| taking the Bay Audiology to 63 clinics nationally. Bay Audio in Australia has |
| also continued its growth and now totals 51 permanent and satellite clinics |
| in Southern Queensland and Northern New South Wales. |
| |
| "At our annual meeting in November, we also announced our planned expansion |
| into the Asian audiology market. In December, we settled our initial |
| acquisitions of four clinics in Singapore and two clinics in Hong Kong. |
| |
| "The company's balance sheet has been used more efficiently to fund growth, |
| and long term banking arrangements are in place with ASB Bank in New Zealand |
| and its parent, CBA in Australia. While we have sufficient funding and |
| facilities in place to meet our strategic growth objectives, we will be |
| reviewing our debt equity ratios going forward to ensure we maintain a |
| prudent level of borrowings. |
| |
| "Although healthcare is reasonably protected from economic changes, we are |
| mindful that the extent of the downturn is unprecedented and it represents a |
| material risk factor for all New Zealand businesses. There are some areas of |
| private discretionary healthcare spend which may be affected and where |
| consumers may elect to delay their healthcare decisions or opt for a lower |
| value solution." |
| |
| The Abano board has declared a fully imputed interim dividend of 9c per |
| share, maintaining the Group's policy of distributing 50 percent of NPAT. |
| The record date will be 16 January 2009, with a payment date of 23 January |
| 2009. |
| |
| Additionally, the Abano board today also announced the appointment of a new |
| independent director. |
| |
| Alison Paterson said: "With Abano's significant expansion in both size and |
| geographical scale over the past 24 months, the board determined that the |
| appointment of a further independent director would be appropriate. |
| |
| "We are pleased today to announce the appointment of Mr Danny Chan as an |
| independent director. Danny replaces Graeme Edmond who retires at the end of |
| December 2008. |
| |
| Danny is an experienced New Zealand director with an Honours degree from |
| Victoria University. His other directorships include AgResearch Limited, |
| Academic Colleges Group Limited and Guardall N.Z. Limited as well as numerous |
| companies associated with his private investments both in New Zealand and |
| throughout Asia. |
| |
| "Danny was selected following a rigorous independent search project. His |
| detailed commercial expertise in Asia, along with his extensive accounting, |
| finance and investment management experience will greatly assist the board as |
| we expand our business into this region." |
| |
| Ends |
| End CA:00174475 For:ABA Type:INTERIM Time:2008-12-19:14:09:55 |
