Ryman announces 49 per cent profit gain

Retirement village operator Ryman Healthcare today reported a record after-tax profit of $35.1 million for the year ended March 31, up 49 per cent on last year's $23.5 million profit.

Annual turnover for the latest financial year was $143 million, compared with $121 million the previous year. Ryman declared a final dividend of 9c a share, increasing its total dividend for the year to 17c a share, from 11.5c.

"We have had an exceptional year and have substantially surpassed our own targets of 15 per cent annual earnings growth," chairman David Kerr said today.

"We are also very pleased to have secured four new sites and to have increased our construction capacity during the year, which will allow us to roll out our new villages more quickly."

Dr Kerr said the company was building in Auckland, Napier, Wanganui, Lower Hutt, Wellington, Christchurch and Invercargill. Its landbank was now sufficient to build more than 1600 new beds or retirement village units, to add to the existing portfolio of 2400.

Ryman's business model of organic growth, using its in-house team to identify and purchase land, design, construct and operate its own villages, was entirely sustainable and provided the firm with cumulative revenues, he said.

Its long-term growth was apparent, having increased profit from $6 million to $35 million inside seven years.

"We are really happy with our expansion path and we are committed to replicating our proven retirement village model at an increasing rate," Dr Kerr said.

"We believe we are well positioned to achieve our medium term target of 15 per cent earnings growth per annum."

Ryman recently opened a retirement village in St John's Hill, Wanganui, which was the 14th village in the listed company's portfolio.

New villages would be opened in Christchurch and Auckland over the next 12 months. Further villages were in the planning stage for New Plymouth, Palmerston North, Nelson and Dunedin.

The company provided homes and care services to more than 2800 New Zealanders, employing more than 1400 staff.

Ryman shares gained 15c to $7.25c yesterday.

- NZPA