Ryman result adds positive tone at week’s end

Leading retirement village operator Ryman Healthcare confounded the sceptics with a record annual financial result and provided a positive tone to the sharemarket at week’s end.

The S&P/NZX 50 Index was up

60.45 points or 0.54 per cent to

11,267.39 and finished the week with a gain of nearly 0.9 per cent, although it is still down nearly 13.4 per cent for the year.

There were 86 gainers and 45 decliners over the whole market, with 38.5 million shares worth $138.77 million changing hands.

Ryman has been one of the battered stocks, falling from a high of $15.80 in early September last year and down 33.79 per cent over the last 12 months. But Ryman leapt 71c or

7.77 per cent to $9.85 after reporting a

13.6 per cent increase in underlying net profit to $255m on cash receipts of $1.4 billion, up 18.7 per cent for the year ending March.

Shane Solly, portfolio manager with Harbour Asset Management, said Ryman’s result was better than expected by a meaningful amount.

Solly said the easing of Covid restrictions in Shanghai and a Chinese move to cut long-term mortgage rates and reignite the housing market provided a boost to markets.

The Shanghai Composite Index was up 1.4 per cent; Hong Kong’s Hang Seng increased 2.33 per cent; and Australia’s S&P/ASX 200 Index gained 1.11 per cent to 7142.9 at 5.45pm NZ time.

At home, Summerset Group Holdings benefited from Ryman’s strong result, rising 50c or 4.77 per cent to $10.98.

Fellow retirement village operator Oceania Healthcare gained 1c to $1.04 after reporting full-year net profit of $61.13m, down from $85.17m, on revenue of $231.14m, up from $175.4m.

My Food Bag was one of the day’s biggest gainers, rising 6c or 7.59 per cent to 85c after beating its prospectus forecasts.

Sky Network Television increased 14c or 5.88 per cent to $2.52. Solly said Sky TV provided a puzzling announcement to the market and left some question marks. The broadcaster said it was deferring any further update on strategy and capital allocation until the full-year results presentation in August.

Market leader Fisher & Paykel Healthcare was up 26c to $20.85; Ebos Group gained 50c to $40; Mainfreight rose $1 to $75.10; a2 Milk increased 10c or 2.16 per cent to $4.73; DGL Group rebounded a further 14c or 4.17 per cent to $3.50; Eroad rose 20c or 8.03 per cent to $2.69; and fast-food company Restaurant Brands gained 25c or 2.17 per cent to $11.75.