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, 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. According to chief executive Earl Gasparich over the past year a block of 44 new apartments was completed at its Milford, Auckland site and a further 316 units and care suites are currently under construction across five sites.
Oceania has a pipeline of 1,708 units and care suites of which 63 per cent or 1,072 are currently consented, he said.
