Retirees equal profits

The expansion of retirement villages nationally pushed Ryman Healthcare's profits up more than a quarter to $23.5 million for the year without increasing its debt. Annual turnover rose 11 per cent to $121 million.

Managing director Kevin Hickman said the Christchurch heathcare operator had set a target of increasing its business by 15 per cent in the past year. That had already been exceeded and work worth $50 million was planned next year.

Ryman is building at Remuera in Auckland, Hamilton, Napier, Wanganui, Lower Hutt and Invercargill. Work will start soon in Wellington's Khandallah and at Aidanfields in Christchurch. Although the expansion would push up debt, Hickman said debt-equity had improved in the past year, from a 32.8 per cent gearing to 30.7 per cent.

"The key to our growth has been to recycle our cash. By the time we've sold units in an existing village, we aim to pay off that project. To fund the next project, we take that seed capital from the last village."

The company had trebled in size since floating in 1999, without the need of any additional capital. He ruled out buying existing facilities as charity and church organisations leave the sector. A final dividend of 6.5c a share will be paid on June 24.

- additional reporting NZPA