A retirement business, which drew former All Black investors including Dan Carter, has pushed up net profit after tax by 47 per cent to make $45m for the half-year to September 30, 2019.
Arvida Group said announced a big lift on the $30m it made in on the first half of its 2019 financial year and said assets grew $542m to more than $1.8b and the business said underlying profit was up 31 per cent to$23.4m.
"Net profit after tax of $45m was up 47 per cent on 1H19," Arvida announced.
"The result was driven by higher volumes and strong margins on the resale of occupation rights and an excellent operating result that was underpinned by the continuing performance of the care business," said Arvida CEO Mr Bill McDonald. "High demand for our care services and range of quality accommodation offerings is producing year on year growth in financial performance."
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Arvida reported care occupancy at 95 per cent in September, "which continued to be significantly higher than industry experience, and that 72 per cent of Arvida's care centres had now attained the gold-standard four-year Ministry of Health certification:.
Bill McDonald, chief executive, said the momentum in the first half was expected to continue for the rest of this financial year.
"With a strong first half now behind us, good momentum in earnings and a lift in our full-year targets following completion of the recent acquisition, we remain confident to follow through with our priorities in the second half of FY2020," McDonald said.
Underlying profit included $17.9m of gains on the settlement of 192 sales of occupation rights during the period, up 16 per cent on the first half-year.
Compared to the same period last year, a 41 per cent lift in resale gains of $12.7m was reported.
That reflected 148 resales in the period, up 10 per cent and higher resale margins at 24 per cent. On average resale prices were 3 per cent above the pricing independently assessed at March 31 this year, highlighting continued pricing momentum and demand.
The name Arvida is a play on words, the 'Arv' standing for 'a retirement village' and 'vida' meaning life and vitality.
Arvida says it is one of New Zealand's largest retirement village businesses, owning and operating 32 properties.
Each village operates independently under a corporate structure, it says.
Around 4500 people live in the villages which offer independent living, rest home, hospital and dementia level care.
Arvida's growth strategy includes the acquisition of villages that meet its criteria and as the development of additional facilities at existing villages.