Ryman Healthcare Ltd grew its underlying profit for the March year by 16% to a record $158 million, and said it was entering a new era of growth.
Reported profit after tax rose 26% to $305 million (the NZ IFRS measure), as new stock & the strong housing market led to valuation gains.
Operating cashflows grew 34% to $312 million, driving a record level of investment in new villages & innovations.
Dividends have been increased by 16%. The final dividend is 8.5c/share.
Ryman chair David Kerr said on the release of the annual results on Friday: “Good profits & cashflows mean we have been able to invest $369 million back into the business.’’
One innovation was the first phase of Ryman’s new homegrown tablet-based nursing app, which will eliminate paperwork and allow nursing staff to spend more time with residents. Dr Kerr said ‘myRyman’ had already won a Microsoft award and was seen as a gamechanger for clinical staff & residents.
The company owns & operates 27 retirement villages in New Zealand & Australia, has 3 more where the first residents have started moving in and 9 under construction or at the consent or design stage.
Dr Kerr said Ryman was working on securing its fourth & fifth sites in Melbourne, putting the company on track to have 5 villages open in Victoria by 2020.
The first Melbourne village was completed & sold out during the year, and construction of the second village at Brandon Park is expected to start within 6 months.
“Returns from our first investment in Melbourne have been better than we expected. Looking out past 2020, our long-term plan is to match our New Zealand build rate in Australia.’’
Ryman ended the year with 98% occupancy in its care centres, which Dr Kerr said was well above the industry average.
Total assets grew 20% to almost $4 billion.
“We’ve achieved most of our targets for the year and we have invested heavily in innovation to make sure we are getting better as well as getting bigger. We will continue to invest heavily in tomorrow’s Ryman, creating a brighter future for residents, staff & shareholders.’’
5 villages under construction:
Petone, first residents moved in, construction continuing
Pukekohe, first residents moved in, construction continuing
Rangiora, first residents moved in, construction continuing
Birkenhead, construction continuing, first residents due mid-2016
Greenlane, demolition complete, groundworks underway.
3 villages awaiting consent: Devonport; Brandon Park, Melbourne; Tropicana, Auckland.
4 villages planned, all in the design phase: Burwood East, Melbourne; Newtown, Wellington; River Rd, Hamilton, an unnamed ‘site A, NZ’.
- Underlying profit up 15.7% to $157.7 million ($136.3 million last year)
- Operating revenue up 15% to $261.1 million ($227.1 million)
- Fair value movement of investment properties up 26.2% to $274.6 million ($217.6 million)
- Total income up 20.5% to $535.7 million ($444.7 million)
- Pretax net profit up 27.8% to $309.3 million ($242 million)
- Tax on operating profit up 3358% to $3.9 million ($113,000)
Net profit attributable to shareholders up 26.3% to $305.4 million ($241.9 million)
- Earnings/share, basic & diluted, up 26.3% to 61.1c/share (48.4c)
- Final dividend up 16.4% to 8.5c/share (7.3c), no imputation credit.
Attribution: Company release.