Performance
 
Financials
 
Governance


 

Operational Performance

All sectors contributed positive operating profits for the financial year to 31 May 2009, leading to a record Net Profit After Tax of $9.7 million, an increase of 24 percent on the previous year.

The record profit was driven by continued demand across all four healthcare sectors, as well as from growing contributions from several new acquisitions, leading to a 51 percent year on year increase in revenues to $187.2 million.

A record Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $31.5 million was also achieved, up 35 percent year on year. This is of particular note as the operating profit included all the initial start up costs of several new significant initiatives undertaken during the financial year in Audiology, Dental and Radiology.

Return on Invested Capital at EBITDA was maintained at a similar level to last year, at 17.3 percent, despite significant investment in acquisitions, Greenfield developments and other initiatives where the full benefits will not be realised until the 2010 financial year and beyond. This is from an initial ROIC on EBITDA of less than 5 percent in 2000 when we were purely an aged care provider.

Earnings per share have grown from 3.7 cents per share in 2005 to 42.1 cents per share in 2009.

The company continues to effectively monitor capital requirements. Capital expenditure in 2009 was $77.5 million, made up of acquisitions of $63.3 million, Greenfield start ups or new revenue generating capital expenditure totalling $3.3 million and $10.9 million of normal operational and replacement capital.

Abano banks with ASB Bank in New Zealand and CBA in Australia and has confirmed debt facilities with both these banks equivalent to approximately NZ$130 million. In New Zealand, Abano has a NZ$100 million confirmed facility with ASB Bank, with maturity terms between 2011 and 2013, with rollover provisions. This is in addition to a separate A$25 million facility with CBA in Australia, which is due to mature in mid 2013, and is ring-fenced as a dedicated facility to fund the acquisition of dental practices for our Australian dental business, Dental Partners.

Interest rate risk is mitigated through the use of interest rate SWAP agreements while a hedging policy is in place to mitigate risk from currency fluctuations where possible. Abano has a very small exposure to fluctuating exchange rates as most purchases are made in New Zealand dollars. However, as we expand into overseas markets, a small increase in this exposure is likely.

Our debt levels increased in 2009 as we continued to grow our businesses through acquisition and Greenfield development. Net bank debt grew to $82.2 million as at 31 May 2009, generating a debt to debt+equity ratio of 57.6 percent which the Board considers acceptable for a growth company such as Abano.

Revenue Progress By Sector

Revenue Progress By Sector

Capital Employed By Sector

Capital Employed By Sector

EBITDA Progress By Sector

EBITDA Progress By Sector

Group EBITDA On Invested Capital

Group EBITDA On Invested Capital