Thursday 20th August 2015 |
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Summerset provides a range of living options to almost 3,200 residents across New Zealand. The company has a successful track record of developing and completing new villages, with 21 completed or in development from Warkworth to Dunedin. Since it was founded in 1994, the Summerset Group has grown consistently to become one of the country's largest and most respected operators in the retirement village and aged care sector.
Summerset builds, owns and operates theses retirement villages focusing on continuum of care model. The Company currently has 1,856 retirement units and an additional pipeline of 404 care beds. In addition it has 491 care apartments to come and with the acquisitions of land in St. John and Parnell in Auckland have boosted the number to 630 units.
Summerset is highly regarded in the industry being Four-time winner of Retirement Village of the Year and recognised by the Reader’s Digest Quality Service Awards 2015.Summerset Group Holdings Limited announced underlying profit of NZ$17.1 million for the half year to 30 June, up 81% on the same period last year. Net profit after tax for the first half of 2015 was NZ$35.7 million, an increase of 134% on the same period last year. This figure includes unrealised valuation gains of NZ$17.6 million in the fair value of investment properties, land and buildings. Summerset’s operating cash flow has grown to NZ$66.5 million for the half year, up from NZ$36.5 million for the six months to June 2014. The total value of assets also grew to NZ$1.2 billion, 26% higher than 1H14. The Board has declared an interim dividend of NZ 1.85 cents per share.
New sales of occupation rights increased 52% on the first half of 2014. Resales of occupation rights were also high, with a 22% increase on the same period last year. The company built 141 retirement units in the first six months of 2015 across six sites. A development margin of 18.4% was achieved in this six-month period, up from 15.7% over the 2014 year. This exceeds the company’s target development margin of 17% which was indicated when Summerset listed on the NZX in November 2011. This target has been achieved one year earlier than expected.
Summerset’s recent acquisitions of three Auckland land sites in St Johns, Parnell and adjacent to the existing village in Warkworth also put the company in a strong position to meet increasing demand across the Auckland region.
Summerset has also announced updated guidance to its build rate, raising its target for FY16 and beyond to 400 retirement units per annum, up from 300 in FY2015. This represents an increase of 60% on the FY16 build rate guidance of 250 units given at time of IPO in November 2011. To fund this increased growth rate, Summerset has secured additional bank funding lines, increasing these from NZ$255 million to NZ$450 million.
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