Best trading period yet, says Ryman Healthcare

By NZPA

Tuesday 13th August 2002

Ryman Healthcare says its present half year will be the best yet.

Sales of occupation rights since the March 31 annual balance date are well ahead of budget, managing director Kevin Hickman told shareholders at the annual meeting in Christchurch today.

That was leading to substantial profit growth. Chairman David Kerr said the six months ending on September 30 would be the best on record.

Ryman's best half year result so far was the $7.01 million achieved in 2000. In the second half of the latest March year, the profit was $6.54 million, following a disappointing first half.

Mr Hickman said sales of apartments at the new Hilda Ross retirement village in Hamilton had been overwhelming, with the fastest take-up of any of the 12 villages developed by the group.

Sales at the Grace Joel village in St Heliers, Auckland, had also been strong.

Ryman Healthcare sells licences to occupy its village apartments, rather than the freehold title. That structure means it does not pay tax on its gains.

The company's latest year produced an $11.07 million profit, down 21 percent on the 2001 result.

Mr Hickman said the high rate of growth being achieved was a factor in this. Four of the 12 villages were still under development and not contributing to profit. Two of the four were now making profits.

Work on a new village at Remuera in Auckland is expected to start later this year, and a further development site was likely to be acquired in the 2003 financial year.

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