Retirement village company Metlifecare Ltd made a $33.7 million loss in the year to June as construction of new units & resales both fell, the average value of new homes rose but the development margin slipped.
Chief executive Glen Sowry said on Wednesday: “Despite the significant challenges & costs involved in successfully keeping residents & employees safe from Covid-19, the company delivered an underlying profit before tax of $93.8 million, slightly below last year’s strong performance.
“This is an excellent achievement in a tough period. After an encouraging first half we experienced a temporary, but major, sales decline in April & May due to the Government-mandated lockdown restrictions.
“We were pleased to see sales momentum return in late May and continue into the first part of the new financial year. Despite the challenges imposed on us by the lockdown, we managed our costs well and maintained good margins.”
Mr Sowry said the $74.8 million valuation cut following the Covid-19 lockdown was partly offset by a reversal in the deferred tax liability of $26.9 million.
Key financial & occupancy points (2019 in brackets):
Statutory operating cashflow, up 2.7% to $123.1 million ($119.9 million)
Underlying operating cashflow, non-Gaap, up 0.5% to $56.2 million ($55.9 million)
Net pretax earnings, down 231% to $60.5 million loss ($46.2 million profit)
Net after-tax earnings, down 158% to $33.7 million loss ($51.2 million profit, restated)
Revaluations, down 239% to $74.8 million (up $53.9 million)
Underlying profit, non-Gaap, down 0.3% to $93.8 million ($94.1 million, restated)
Total assets, up 1.6% to $3.57 billion ($3.52 billion)
Net assets, down 3.1% to $1.53 billion ($1.58 billion)
Net tangible assets/share, down 3.1% to $7.18 ($7.41, restated)
Gearing ratio, 17% (15%)
Village occupancy, 96% (97%)
Care home occupancy, unchanged on 95%
New homes delivered, down 28% to 81 (112)
Average value of new homes at settlement, up 12.9% to $773,000 ($685,000)
Development margin, down 30.8% to $11.7 million ($16.9 million)
Development margin on revenue, 16% (21%)
Development margin on costs, 18% (27%)
Resales margin, down 15.4% to $60.5 million ($71.5 million)
Attribution: Company release & report.