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Aged care provider Oceania Healthcare has reported a reduced full year profit on lower property value gains, but its underlying performance has improved on a rise unit sales and revenue.
Key numbers for the six months ended September compared with a year ago:
- Net profit $11.2m vs $36.9m
- Underlying earnings $38.7m vs $36.5m
- Revenue $122.1m vs $113.9m
- Interim dividend 1.9 cents a share vs 2.1cps
The bottom line profit was hit by a 31 percent fall in the gain in values for its property portfolio, but excluding one off costs underlying earnings were up 6 percent on increased management fees and higher margins on the sale of units.
Revenue for the six months was up 7 percent although expenses increased at a faster 12 percent rate.
Chief executive Brent Pattison said the company was seeing the benefits of its growth into premium care facilities as well as a disciplined approach to its development pipeline.
"Oceania is continuing to pursue opportunities to acquire additional development land in targeted growth locations around New Zealand and has strong balance sheet capacity to support this growth."
The company's gains from sales of new units and resales of existing units rose 12 percent and it opened up 127 new care suites at its Lady Allum village in Auckland and Woodlands village in Motueka.
It currently has 519 units and care suites under construction in Auckland, Hamilton, Tauranga, Blenheim and Christchurch, with increasing levels of presales.
"It is pleasing to see a broader acceptance of our care suite model by families looking for premium care options for their loved ones," Pattison said.
Oceania's debt level increased to 34.5 percent from 28.6 percent the year before, which reflected its acquisition of land and villages for development.
In July the company settled the $57m purchase of the Remuera Rise and Bream Bay villages.