Arvida Group, which operates 21 retirement villages and aged care facilities, reported annual earnings ahead of its prospectus forecast and said it was confident of further gains in 2017.
Underlying profit, which Arvida has said it will use as its primary earnings measure, was $15.8 million in the year ended March 31, about 19 per cent more than its initial public offering forecast of $13.3 million given in December 2014. Underlying earnings strip out fair value changes to investment property and include the board's estimate of "realised components of movements in investment property value" while eliminating deferred tax and one-off items.
Net profit was $24 million, more than double its IPO forecast of $10.6 million, on revenue of $82.5 million which was 19 per cent ahead of forecast. The company booked a $19.1 million increase in the fair value of its investment properties with its total assets now worth $461 million, up 31 per cent on a year earlier.
"Our first full financial year as a publicly listed company has seen Arvida make substantial progress against the growth initiatives outlined at the time of IPO and deliver strong financial results against IPO forecasts," chairman Peter Wilson said in a statement.
Arvida listed in December 2014, having raised $75 million in an IPO at 95 cents a share. It was created through the merger of an initial 17 retirement villages and added to that in July 2015 with the $62 million cash and scrip purchase of the three Aria villages in Auckland.
