A modest lift in sales and demand for aged care have lifted the half year underlying profit of the country's third largest rest home operator.
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Oceania Healthcare has reported a net profit of $1.3 million for the six months ended November compared with last year's $42.5 million.
The sharp decline in the headline result reflects changes in accounting rules and the way certain spending and income is treated.
The underlying profit was $20.9 million, up 5 percent on a year ago.
"We have delivered a strong result ... reflecting increases in deferred management fees from our Village business and realised development gains from sites completed earlier in the year," chief executive Earl Gasparich said.
The company, which has a large proportion of aged care units, opened a new facility in Tauranga and has sold much of a new development in Auckland.
It currently has 370 units and care suites under development.
"We continue to deliver all of the development projects in our pipeline on time and on budget, an excellent achievement in the current construction market," Mr Gasparich said.
However, Oceania's labour costs rose because of the pay equity deal and the need to match the wage rises for public sector nurses.
The company maintained its interim dividend at 2.1 cents a share.