Ryman has big plans

The country’s largest retirement village operator is aiming to grow resident numbers by 70 per cent over the next fiveyears.

At Ryman Healthcare’s annual meeting in Howick, Auckland on Wednesday, chairman David Kerr told shareholders the company had 17 villages at different stages of development in New Zealand and Australia, including six new villages under way in Auckland.

The NZX-listed company has bought a new site in Hamilton and is close to confirming a third site in Melbourne as part of its plan to increase its resident numbers from 9000 to 15,500 by 2020.

‘‘It’s the busiest we’ve ever been but that simply reflects the demand we’re seeing coming through,’’ Kerr said.

Ryman has also set a target of opening five Melbourne villages and 10 in Auckland by 2020. It already has 28 villages operating in New Zealand and Australia.

It has been a strong run for the Canterbury-based company.

In its annual report up to March 2015, released last month, Ryman’s profit was up 15.3 per cent to $136.3 million.

The 2015 financial year marked its thirteenth consecutive year of profit growth, and the company has doubled in size in the past five years.

Kerr told shareholders it had been a busy year and the company’s main focus remained on improving the experience of residents living in a Ryman village.

The company had increased pay rates for care staff for the third year in a row, taking pay increases over that period to 16 per cent.

He said the company was in a strong financial position, was actively looking for new village sites and more purchases were likely.

‘‘We have identified Melbourne and Auckland as having great potential because of demand from the ageing population,’’ he said.

Kerr was pleased with the company’s progress in the Australian market, less than a year on since it opened its first village in Melbourne. ‘‘We have almost sold down the first village, we’re close to starting work on our second site at Brandon Park and we have a third village in the east of Melbourne in our sights.’’

‘‘We think Melbourne has great potential for Ryman and we are building our capacity to make the most of the opportunity we see,’’ he said.

Ryman’s share price has risen 6 per cent over the past 1 year.