ABA
02/11/2015 17:04
MEETING
NOT PRICE SENSITIVE
REL: 1704 HRS Abano Healthcare Group Limited
MEETING: ABA: Abano Annual Meeting Summary and Voting
At the Abano Healthcare Group annual shareholder meeting today (NZX: ABA),
the company provided a business update and guidance for the first half year
to 30 November 2016, with new chief executive, Richard Keys, outlining the
long term goals and strategy for Abano.
Richard Keys commented: "The healthcare market in Australia and New Zealand
is one of the largest sectors of both economies. The opportunity to continue
with our established growth strategy and invest in scalable private fee for
service healthcare businesses in these markets is material.
"The $11 billion trans-Tasman dental market remains Abano's most immediate
and significant opportunity. We own the second largest dental group in the
region and we are continuing to grow, primarily through acquisition of mid to
high end dental practices."
The launch of our dental brand in Australia - Maven Dental Group - and
investment into people, systems and infrastructure are continuing as the
company builds a strong platform for future growth. Meanwhile, the more
mature Lumino The Dentists in New Zealand has recently launched its third
creative campaign and is continuing to lead the market, attracting high
calibre dentists and dental specialists to the group. The experience and
lessons learnt in New Zealand are being used to good effect in Australia.
Richard Keys continued: "Abano currently has group annualised gross revenues
of around $300 million and our goal is to have a 10% share of the
trans-Tasman dental market within 10 years, which equates to approximately $1
billion in gross revenue.
"We are already the second largest dental consolidator in the trans-Tasman
dental market and we expect to see our market share, revenues and
profitability increase. Our audiology and radiology businesses also offer
growth potential, albeit in much smaller markets."
HY16 Business Update and Guidance for the Six Months to 30 November 2015
Guidance for the first half of 2016 reflects the continuing growth and
investment into the infrastructure of the dental businesses. Seven practices
expected to provide approximately $13 million in additional annualised gross
revenue have been acquired in the year to date with several more in the
pipeline to complete in the next few months.
In addition, the timing of Abano's dental conferences, which are usually held
every 12 to 18 months, have all occurred in the first six months of the year.
While these have a significant cost, they play a pivotal role in attracting
and retaining dentists, as well as education and upskilling, developing
collegiality, sharing knowledge and building organisational culture.
The New Zealand dental business continues to perform well with same store
growth at around 3%. Our Australian dental business is facing more
challenging business conditions with economic growth below trend in
Australia, particularly in Queensland where 40% of Maven's practices are
based. These Queensland practices are offsetting the positive same store
growth being achieved in the rest of the group, resulting in an overall drop
in same store sales for Maven Dental Group of approximately 3%.
Bay Audio in Australia is now showing good improvements and is on track to
report a second year of profit, with same store growth currently tracking at
around 4%. Three new greenfield stores have been opened this year so far,
with several more planned over the next few months. Meanwhile the focus for
Bay Asia, which operates in smaller but more challenging markets, is to
achieve a breakeven result at EBITDA.
Insight+Ascot Radiology is focused on delivering operational improvements as
well as driving demand for its high end services. This includes the new
digital tomosynthesis mammography modality, which provides faster and more
effective diagnosis of breast cancers.
Based on this, and excluding Abano's AUD$1.8 million share of Bay Australia's
unrecognised deferred tax asset, which based on current trading is likely to
now be recognised in the current financial year, guidance for the first half
of the 2016 financial year is as follows:
Revenue is expected to be $105 to $109 million and gross revenues are
expected to be $150 to $ 154 million. EBITDA is forecast to be $11.9 to
$13.1 million with underlying EBITDA of $12.5 to $13.7 million. Net Profit
After Tax is expected to be at between $3.0 to $3.6 million, with underlying
NPAT of between $3.5 to $4.1 million.
(See full table in attached release)
The year on year comparison reflects the growth of Abano's dental networks
and the improvements in audiology, while the divestment of the pathology and
orthotics businesses last year means there are no longer earning
contributions from these businesses in this financial period. A like for like
comparison for HY15, excluding the pathology and orthotics businesses which
were sold, has been provided to provide readers with further clarity on the
relative performance of Abano's ongoing businesses.
Chief Executive Officer Transition
The meeting was the last for Abano's long standing chief executive, Alan
Clarke, who retired at the end of the meeting. Alan's visionary leadership
and his ability to attract and retain top people were acknowledged by Abano's
Chairman, Trevor Janes.
"It is no exaggeration to say that without Alan there would be no Abano. He
has developed an organisation culture where employees are passionate about
their business and focused on delivering results. He has also attracted and
retained top people, which is among the greatest compliments you can pay a
company leader, and we are delighted that both our incoming CEO and our
recently announced incoming CFO are both internal candidates."
Shareholders passed all resolutions at the 2015 Abano Annual Meeting:
Resolution For Against Abstain
Election of Mr Murray Boyte 7,073,790 1,007,938 8,342
Re-election of Ms Pip Dunphy 6,262,254 1,813,900 13,916
Re-election of Mr Ted van Arkel 6,248,233 819,924 1,021,913
Authorise Directors' to fix the auditor's remuneration 8,079,715 1,428 8,927
(See table in attached release)
ENDS
End CA:00272720 For:ABA Type:MEETING Time:2015-11-02 17:04:20
