Arvida Group, which operates 21 retirement villages and aged care facilities, posted first-half profit of about $7.4 million, putting it on track to meet its prospectus forecast for full-year earnings.
Arvida listed in December 2014, having raised $75 million in an initial public offering at 95 cents a share. It was created through the merger of an initial 17 retirement villages and added to that in July with the $62 million cash and scrip purchase of the three Aria villages in Auckland. The results for the six months ended September 30 included three months' contribution from the Aria properties. The shares last traded at 87 cents and have dropped 8.4 per cent since listing.
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First-half sales were $39.3 million, including $34.6 million in care fees and village services, and total assets were $436 million, ahead of the $365 million year-end target set out in its prospectus. That included a $3.8 million fair-value gain on investment properties after a review by CB Richard Ellis. Expenses of $33.8 million included one-time costs from the Aria acquisition and earthquake remediation work of $1.4 million, and $19.6 million for employee costs, the Auckland-based company said in a statement.
The company said it has made "significant progress" integrating its 21 properties and benefits from leveraging its new operating structure, it said. "Supported by positive ongoing sector demographics and the favourable outlook in demand for services, we are confident that by keeping our focus on our strategy we are well positioned to exceed the profit forecasts contained in the prospectus."