2014 Annual Report

FY14 Snapshot

  • Consistent returns from Aotea Pathology, operating under DHB contract
  • Focus on growing demand for world class scanning technologies at Insight+Ascot Radiology

Abano’s Diagnostics sector is made up of two businesses – Insight+Ascot Radiology in Auckland, which is held in partnership between Abano (70%) and a number of radiologist partners (30%) and Aotea Pathology in Wellington, a joint venture between Abano (55%)and Sonic Healthcare (45%).

The performance from the sector remained consistent with the previous year, with $42.7 million in gross revenue and $7.8 million in EBITDA. This was equal to 16% of Abano group gross revenues.

In FY13, Insight+Ascot Radiology completed a five year investment programme into three new clinics and technologies. In the last twelve months, the business has focused on building demand for these world class scanning technologies, with a particular emphasis on marketing to referrers. We are starting to see a lift in demand, with a particularly pleasing improvement in the final quarter of the financial year.

Aotea Pathology’s result was stable and in line with the regional DHB contract under which it operates. This contract is currently being reviewed and Aotea Pathology has an extension until October 2015.

FY15 Outlook

We will continue to focus on growing demand for our existing radiology services with no major capital expenditure planned for FY15.

The main priority for Aotea Pathology is the contract renewal process which is currently underway. Aotea offers a high quality, respected service to the Wellington, Kapiti Coast and Hutt Valley regions, and we are working closely with the regional DHBs to ensure this world class service continues to benefit its local communities by securing longer term contracts.