14% OF ABANO’S FY16 GROSS REVENUE
GROSS REVENUE $40.2M/ UNDERLYING EBITDA $2.3M
The audiology joint venture contributed $40.2 million in gross revenue for the 11 months of ownership in FY16.
We continued to invest into the growth of the Australian network and opened six new greenfield stores, as well relocating two stores into retail locations. For the second year in a row, this business delivered positive underlying EBITDA, following eight years of development losses.
We announced the sale of this business in April 2016 and it ceased to be recognised as an equity accounted investment. Therefore, the FY16 reported results exclude earnings from Bay International for the month of May 2016.
The sale price of $32 million was well in excess of our book value of $11.9 million, and provided a surplus of over $20 million. The proceeds have been used to pay down debt and will be reinvested into the growth of our dental business, which we have identified as offering more potential and higher medium to long term value for our shareholders.
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