Ryman Healthcare profits down 9pc to $66m

Aged care and retirement village operator Ryman Healthcare has reported a 9 per cent fall in full year profits to $66.1 million.

When an unrealised fair value movement in investment properties of $16.4m and a $3.3m deferred tax expense were taken into account, the company reported a realised profit of $53m for the year to the end of March, up 5 per cent from a year earlier.

Sales of retirement village units were up 3 per cent on last year with prices steady, and resthome and hospital occupancy at all time highs, Ryman said today.

The growth in demand reflected the burgeoning elderly population and underlined a growing need for the company's services, irrespective of wider economic conditions.

Ryman declared a final dividend of 2.85c per share, compared to 2.8c a year earlier.

"Our operating cash flows this year were again very strong at $114m. This has allowed us to increase our level of dividends, and fund the building of our new villages without the need to raise fresh capital or to increase debt," chairman David Kerr said.

Ryman was well placed to achieve growth in its realised profits and dividends in the year ahead.

The company was committed to its new village development programme, and to building 300 units and 100 care beds a year, Kerr said.

"Presales for our new villages are strong, we have term bank facilities in place and we have sufficient land to build more than 1700 new units or beds."

In the latest year a village in Nelson was opened, was now home to more than 200 residents and continuing to expand.

Initial stages of new villages in New Plymouth and Whangarei were now open, and work was well advanced on what would become the group's 21st village in Orewa.

Ryman's share price closed at $1.62 yesterday, having ranged between $1.94 and $1.14 in the past year.

- NZPA