Australasian Abano Healthcare Group Limited recently announced it was on track to achieve results in line with management forecasts for fiscal year ending 2017 (May 31). Abano, a listed healthcare investor, (NZX: ABA), provided guidance for the financial year ending 31 May 2017, with results for continuing businesses forecast to be well above the previous year.
Growth of Abano’s businesses is continuing, particularly the trans-Taman dental group whose strategy is to grow through the acquisition of dental practices, greenfield development and organic growth. Over 81% of Abano’s gross revenue was derived from their dental business in FY 16 with a forecast of 95% of revenue from dental businesses in FY17 [Source: CEO statements HERE]. The dental group is delivering an improving margin as management continues its focus on realizing the benefits of scale, closer collaboration and cost efficiencies. Abano Healthcare Group’s Chairman, Trevor Janes, stated: “FY17 continues to be a positive year for Abano as we invest into the growth and development of our businesses, particularly our trans-Tasman dental group which is benefiting from economies of scale and increasing market share. The benefits of belonging to a corporate dental group are becoming more widely understood and, with Albano’s positive reputation and workplace culture, we are seeing an increase in our acquisition pipeline.”
Abano’s dental concerns do business under the Maven Dental Group brand in Australia and the Lumino The Dentists brand in New Zealand. The combined dental brands operate over 200 dental clinics. Abano’s stellar dental branding strategy has enabled the company to retain most dentists after their acquisition earn out period. In New Zealand for example, the Lumino brand has over 85% brand awareness. Abano continues to have a strong acquisition pipeline and will focus on continued growth via that strategy, however the company can now leverage their brand recognition to open strategic de novo locations. Abano has also increased their focus on private payment and on mid to high end of the market dentistry.
Read other Abano news on GDN HERE