Oceania profit beats forecast
Oceania Healthcare, which listed in May, said full-year net profit and pro forma underlying earnings exceeded its forecasts on the back of a lift in the valuation of its care and retirement village assets.
The Auckland-based aged-care operator said its reported net profit was $44.9 million in the year to May 31, ahead of the $25.3m forecast in its product disclosure statement when it carried out its initial public offering. Pro forma underlying earnings before interest, income tax, depreciation and amortisation (ebitda), were $45m, ahead of the forecast $44.3m.
Total assets increased by $135m to $918m following a material increase in development capital expenditure and acquisition of sites, it said. Net debt fell to $84m from $274m, giving it a low gearing of 15 per cent.
The company said it had used proceeds from a $200m capital-raising to reduce debt and forge ahead with its development programme. Chief executive Earl Gasparich said over the past year a block of 44 new apartments was completed at its Milford, Auckland, site and 316 units and care suites were under construction across five sites.
Oceania had a pipeline of 1708 units and care suites, of which 63 per cent, or 1072, were consented, he said.
There was “good momentum” in existing businesses. He noted the care segment was ahead of its IPO forecast, with an ebitda per bed (excluding its decommissioned sites) of $12,648 versus a forecast of $12,614.
—