Aged care demand drives profit for Oceania Healthcare

Strong and steady demand for aged care and retirement units has driven Oceania Healthcare’s first half profit up by two thirds on the year earlier.

Photo of young carer helping the elderly woman

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The aged care and retirement village operator and developer reported net profit for the first six months ended in November rose 67 percent to $25.8 million dollars, with sales volumes up 44 percent on the year earlier.

“The company achieved very strong sales volume across both new sales and resales over the first half of the financial year, as well as experiencing continued strong demand for our premium care suites across the country,” chief executive Earl Gasparich said.

Revenue rose 7 percent to $105m, with cashflow up 31 percent to $74.6m as a result of strong sales volumes.

The company said there had been no Covid-19 cases recorded to date in any of Oceania Healthcare’s aged care centres or retirement villages.

It had completed of 28 apartments and 61 care suites at its Nelson-based Green Gables facility in September and was on track to complete 217 new independent living apartments and villas, and care suites by the end of March.

Total assets rose nearly 12 percent to $1.7 billion, as a result of its capital development during the period

“We were very pleased with our $125.0 million inaugural domestic retail bond issue in October 2020 that has provided us with diversity of funding and tenor and will help facilitate Oceania Healthcare’s future growth,” Gasparich said.

The company was planning to pay an interim dividend of 1.3 cents a share later next month.

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