KEY POINTS:
OECD and Ministry of Health surveys keep showing it - the aged are living longer, thanks to improved medical care. And for companies serving the retirement sector, it's all cream.
Retirement village operator Ryman Healthcare today reported a 22 per cent lift in half year net profit after tax to $34.7 million, with demand strong for its expanding portfolio of villages.
The result for the six months to the end of September compares to $28.3 million in the corresponding period last year, and was achieved on operating cashflow of $61 million.
The company has lifted its interim dividend to 2.2 cents per share, up from 1.8cps this time last year.
Chairman David Kerr said three new villages had already opened this year - in Auckland, Palmerston North and Christchurch - with another in Nelson due to open by year end.
The company had now built more than 3000 units, up from 900 eight years ago.
"This growth has all been achieved while increasing dividends and without seeking additional capital from shareholders," Dr Kerr said.
"Our landbank is in great shape. We recently secured a site in Whangarei which means we now have capacity to build just under 2000 units across 13 different sites."
The record profit was a direct reflection of the growth in Ryman's portfolio in recent years, and strong demand being experienced across all its villages.
"We are committed to our strategy of organic growth, developing uniquely Ryman villages on greenfields sites throughout New Zealand, and we expect to achieve our targeted growth for the year," he said.
Ryman owns 17 villages nationwide and plans to open new ones in Nelson, Orewa, New Plymouth, Whangarei, Gisborne and Dunedin.
Its trading revenue for the half year was up 16 per cent to $34.9m , while total income from ordinary activities rose 26 per cent to $67m.
- NZPA
