Ryman expands on leap in profit

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Ryman Healthcare, the 22-village aged care and retirement operator, is building more units and care beds to meet demand, and is eyeing Australia after pushing up its net after-tax profit.

In the year to March 31, 2011, the company made $100.2 million net after-tax profit, up on last year's $78.4 million, and is developing 550 units or beds annually on nine sites with plans to expand across the Tasman.

Chairman David Kerr said increased provision of units and beds matched growing demand, Ryman responding to Statistics NZ estimates that New Zealanders aged over 75 would rise from 250,000 to 516,000 in the next two decades.

Ryman was well positioned to cater to this fast-growing group. "We've achieved our new build rate this year which boosted new sales by 50 per cent," Kerr said.

Ryman sold 699 new and existing retirement village units in the March year for $235.1 million, up on last year's 631 sales for $193.7 million. Ryman owns 2886 units (up from 2543) and 1852 care beds (1674).

But it's accumulated a landbank enabling development of a further 1439 village units and 702 care beds.

"The company recently acquired a Waikanae site and is actively seeking a site for its first village in Australia," Ryman announced yesterday. "A new village has been successfully opened in Dunedin during the year and work commenced on new villages in both Gisborne and Tauranga."

The company made total revenue of $129.7 million, up 18.2 per cent for the year and will pay a final dividend of 3.80 cents a share on June 24.