Ryman Healthcare posts record profit

Retirement village Ryman Healthcare reported a record 16 per cent increase in realised profit for year ended March 31.

The Christchurch-based resthome operator had a profit of $61 million.

When unrealised gains are included, the profit increases to $78 million, up 19 per cent compared to last year.

Operating cashflows were up 31 per cent to $149 million for year, allowing the company to reinvest $120 million in new facilities without increasing debt.

The company said shareholders will receive a 16 per cent in their annual dividend. The final 3.4 per share will be paid on June 25.

Chairman David Kerr said Ryman is pleased with its strong growth earnings, and the ability to continue to fund the building of new villages out of operating cashflows.

New villages have opened in New Plymouth, Whangarei and Orewa during the year, and work has started on new villages in Dunedin and Gisborne.

The company has built about 450 new units or rooms a year over the past four years, and now has over 4200 units or rooms.

It is building at seven villages, has increased its landbank to 1900 units/rooms, and says it will continue at its current building rate for the foreseeable future.

Statistics New Zealand estimates the number of New Zealanders aged 75 and over will more than double from 250,000 to 516,000 over the next 20 years.

The company said it was well positioned to cater for the needs of the rapidly growing group.

"We are seeking to grow at the rate of 450 units/rooms per annum, to meet the needs of an elderly population which is increasing at the rate of 12,000 people per annum for the next twenty years."

Ryman owns 21 villages nationwide, and plans to open two new villages every year.

The company said since listing in 1999, it has increased profits and dividends ten-fold without seeking fresh capital from shareholders.

Its shares last traded at 213, after going up 3c to 217 this morning.

- NZPA