Abano extends Wellington pathology contracts by $75mln

Abano secures $75 mln extension to Wellington pathology contracts

Dec. 23 (BusinessDesk) – Abano Healthcare Group, the specialist healthcare clinic investor, has extended its pathology contracts in the Greater Wellington region for another three years.

The $75 million contracts with Hutt Valley and Capital & Coast District Health Boards build on existing five-year deal with Abano subsidiary Aotea Pathology.

“This extension provides some certainty and mid-term stability for both employees and the communities who use these vital services,” the company said in a statement to the NZX.

“The contract extension announced today is a step in the right direction and we hope that further discussions with the DHBs will result in further, longer term stability for this essential medical service and its specialised and highly qualified workforce,” managing director Alan Clarke said.

“For New Zealand to be able to recruit and retain world class pathologists and laboratory staff, it is important service providers are able to provide long term employment security.”

Abano this week reported a drop in first-half profit after stripping out revenue from the Bay Audiology unit it sold last year. Underlying profit fell to $2.8 million in the six months ended Nov. 30, from $3.4 million a year earlier.

The shares rose 0.6% to $4.84 and have dropped 23% this year.

(BusinessDesk) 16:54:01

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