Leading retirement village operator Ryman Healthcare confounded the sceptics with a record annual financial result and provided a positive tone to the New Zealand 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 after reaching an intraday high of 11,294.65. The index finished the week with a gain of nearly 0.9 per cent but 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 Healthcare has been one of the battered stocks, falling from a high of $15.80 set in early September last year and down 33.79 per cent over the last 12 months.
But Ryman leaped 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. Its debt to equity reduced from 44.3 per cent to 42.6 per cent, and total assets are $10.97b.
Ryman's development pipeline of 29 new villages will provide homes for 9000 residents and capital proceeds of more than $6.8b. Ryman is paying a final dividend of 13.6c a share on June 17.
Shane Solly, portfolio manager with Harbour Asset Management, said Ryman's result was better than expected by a meaningful difference, backed by better sales and activity in Melbourne and improved margins on New Zealand units.
"Ryman has done a great job looking after residents and have a proposition built on care. The retirement village sector has been hit hard in the last six months and Ryman's result is a reminder that these stocks are also healthcare businesses."
Solly said the easing of Covid restrictions in Shanghai and the Chinese move to cut long-term mortgage rates and re-ignite the housing market provided a boost to markets.
The Shanghai Composite Index was up 1.4 per cent to 31'40.27 points; Hong Kong Hang Seng increased 2.33 per cent to 20,589.11; and the Australian S&P/ASX 200 Index gained 1.11 per cent to 7142.9 at 5.45pm NZ time.
At home, Summerset Group Holdings benefitted 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. Operating earnings (ebitda) increased 16.2 per cent to $76.24m. Oceania is paying a final dividend of 2.3c a share on June 21.
My Food Bag was one of the day's biggest gainers, rising 6c or 7.59 per cent to 85 after beating its prospectus forecasts. The meal kit company's net profit increased 719 per cent to $20m on revenue of $193.95m for the year ending March. Operating earnings (ebitda) were slightly ahead at $34.2m.
My Food Bag delivered more than 18 million meals, achieving an average order value of $126.60, and it is paying a final dividend of 4c a share on June 16. Selective price increases and tight cost management overcame inflation, labour and supply chain challenges.
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 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 and Paykel Healthcare was up 26c to $20.85; Ebos Group gained 50c to $40; Mainfreight collected $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; and Eroad rose 20c or 8.03 per cent to $2.69.
Restaurant Brands gained 25c or 2.17 per cent to $11.75; Ventia Services Group was up 11c or 3.72 per cent to $3.07; Goodman Property Trust improved 5c or 2.35 per cent to $2.08; AFT Pharmaceuticals increased 11c or 3.55 per cent to $3.21; and Gentrack rose 8c or 5.33 per cent to $1.55.
Delegat Group was down 23c or 1.85 per cent to $12.20; Contact Energy declined 13c to $7.68; Meridian shed 10c or 2.17 per cent to $4.50; and Skellerup Holdings decreased 10c or 1.87 per cent to $5.25.
Vista Group declined 5c or 3.13 per cent to $1.55; T&G Global fell 12c or 4.21 per cent to $2.73; Green Cross Health was down 4c or 3.15 per cent to $1.23; and Marsden Maritime Holdings shed 16c or 2.67 per cent to $5.84.
Cannasouth was up 2c or 5.8 per cent to 36.5c after announcing three cannabinoid products were successfully assessed by the Medicinal Cannabis Agency. Cannasouth is close to harvesting its first commercial crop.