Ryman profit slides 8.9% on rising costs

Thursday 21st May 2009

Ryman Healthcare, the retirement village operator, posted an 8.9% drop in full-year profit as costs rose 20%. The shares gained 1.2%.

Net profit fell to $66.1 million in the year ended March 31 from $72.6 million a year earlier, the company said in a statement. Revenue jumped 22% to $92.4 million, while total expenses increased 20% to $80.2 million. The shares climbed 2 cents to $1.64 on the NZX 50 index today and have risen 18% so far this year.

Operating cash flow fell 9.2% to $114 million, though Ryman said its finances are strong enough to allow for a higher dividend payment and investment in new villages. It raised its final dividend by 5% to 5.25 cents per share.

“Presales for our new villages are strong, we have term bank facilities in place, and we have sufficient land to build more than 1,700 new units or beds,” said chairman David Kerr. Our cash flows will cover spending on “new villages without the need to raise fresh capital or to increase debt,” he said.

The retirement village operator owns 21 villages nationwide and plans to build 300 units and 100 care beds every year, Kerr said.

The company reported a ‘realised’ profit, which excludes deferred tax charges and unrealised fair value in investment properties, of $53 million, 5% higher than the previous year.

Businesswire.co.nz

Comments from our readers

No comments yet