Abano has a strong relationship with its bankers, ASB Bank, with total facilities of AUD$85 million and NZ$50 million. A 12 month extension of all facilities was granted during 2014.
As at 31 May 2014, these facilities were drawn down to AUD$46.7 million and NZ$31 million respectively, resulting in over $60 million in undrawn facilities for future acquisitions. Fixed interest swaps are in place for 96% of drawn debt as at 31 May 2014.
At all times during the year, Abano complied with its banking covenants.
FY14 saw further investment into the trans-Tasman dental industry, with the acquisition of 19 dental practices (FY13: 24), providing NZ$5.6 million and AUD$20.1 million in annualised gross revenue – a total of NZ$28.1 million (FY13: NZ$23m).
Normal operational and replacement capital expenditure is increasing as Abano continues to grow, but at a rate that is lower than depreciation.