CEO Alan Edwards says the focus is on the golden triangle area between Auckland, Hamilton and Tauranga. Photo / Natalie Slade
CEO Alan Edwards says the focus is on the golden triangle area between Auckland, Hamilton and Tauranga. Photo / Natalie Slade
New Zealand's second biggest listed retirement business pushed up net profit after tax for the latest half-year a spectacular 48 per cent from $26.8 million to $39.7 million after strong sales activity.
Metlifecare's strong result for the December 31, 2014 half-year comes after big construction, development and portfolio growth.
Sales activity remained strong in the half-year, the company has announced, with 29 sales and 202 resales generating gross cash flows of $89.1 million, 28 per cent up.
New sales produced gross cash flows of $16.1 million, twice the value produced in the half-year to December 31, 2013.
Realised resales gains of $14.1 million were up 64 per cent.
Metlifecare now has 198 units, apartments and care beds under construction and says it is making good progress to lifting sustainable build rate to at least 200 per year.
"On Auckland's North Shore, construction continues on The Poynton stage 4 (62 apartments), Greenwich Gardens stage 1 & 2 (27 villas), The Orchards stage 1 (17 apartments and 36 care beds) and stage 2 (37 apartments).
"Metlifecare expects to see the first residents move into these developments late in Q4 FY15 except at The Orchards stage 2 where occupation is expected in Q1 FY16.
"At Oakridge Villas in Kerikeri, Metlifecare has initiated construction of the Pavilion which will provide the residents with lounges, dining areas, an activities area, a swimming pool, gymnasium and a wellness centre and additional infrastructure is being built to support further development at this site.
Growing Metlifecare profitably remains an important part of our focus for this year. The company is positioning itself to cater for the increasing demand for quality retirement living options.
"Metlifecare has also progressed consenting and achieved resource consents to build 70 care beds and 16 serviced apartments at Somervale in Mount Maunganui. Resource consent was also achieved to build 42 apartments and 36 care beds at The Avenues in Tenth Avenue, Tauranga.
"Revenue of $48.9 million was a 4% improvement driven mainly by higher DMF income.
"Total expenses reduced slightly to $41.2 million for 1H15. Operating cash flow increased to $33 million (1H14: $11.8 million) on the back of stronger sales volumes and higher realised resales gains.
"Total assets grew 4% to $2.09 billion during the period. This growth was due to the $32.3 million increase in the fair value of investment properties and increased development activity, consisting of $42.4 million of capitalised expenditure."
Alan Edwards, chief executive, said he was pleased with the result "as we continue to build on our position as a leading New Zealand retirement village and care provider".
"Growing Metlifecare profitably remains an important part of our focus for this year. The company is positioning itself to cater for the increasing demand for quality retirement living options," Edwards said.
