Ryman boosts profit 28pc on fatter fees

The Edmund Hillary Retirement village in Remuera. File photo

Ryman Healthcare, the retirement village operator, boosted net profit 28 per cent as it took in bigger care and management fees and recognised increasing value in its investment property portfolio.

The Christchurch-based company made a net profit of $100.2 million, or 20.1 cents a share, in the 12 months ended March 31, up from $78.4 million, or 16.8 cents, a year earlier.

The increase came from an 18 per cent lift in revenue to $129.7 million, made up from a 17 per cent boost in care fees to $105.8 million and a 26 per cent gain in management fees to $23.3 million.

The value of Ryman's property portfolio increased by $171.2 million to $1.21 billion.

Stripping out the unrealised gain in the value of its properties, the retirement village operator raised underlying earnings 17 per cent to $72 million, beating the 15 per cent gain forecast by the company.

"This is a very strong performance from the company, ahead of our own expectations, and in the face of a weak economy," chairman David Kerr said in a statement. "It's a result that reinforces the defensive nature of the company's trading activities."

In March, Ryman flagged a $100 million village for the Kapiti Coast, and has opened a new village in Dunedin.

It's also fast-tracked plans to build in Christchurch to help cater the spill-over after the February earthquake and is seeking a site in Australia.

Kerr said the new build rate lifted new sales by 50 per cent, and "we have escalated plans to meet the growing demand we are experiencing."

The shares rose 0.4 per cent to $2.62 in trading yesterday, and have gained 13 per cent this year.