Japara expects $300m hit to goodwill
JAPARA Healthcare expects a non-cash impairment charge of $270 million to $300 million, mostly against goodwill, in its full-year financial results as a result of the coronavirus crisis.
The aged-care operator says the impairment will have no impact on its debt facilities or covenants, cash flows or normalised earnings.
The Melbourne-based agedcare operator in February reported a drop in half-year profit to $5.42 million, on revenue of $207 million.
Japara says it has three development projects under way and is pausing all other construction projects in light of the uncertain economic outlook.
Japara shares closed yesterday up 2.7 per cent — or 15 cents — to 58 cents.