ElderCare repositions into loss

By Phil Boeyen, ShareChat Business News Editor

Friday 22nd December 2000

Nursing and resthome operator ElderCare has made an interim loss of $6.7 million as a result of non-cash and one-off restructuring costs associated with repositioning itself into additional medical and health care opportunities.

The loss compares to a profit of $2.2 million for the same period last year. Revenue for the six months ended November was $17.3 million, double last year's figure.

ElderCare says the result, which was flagged at the company's AGM last month, includes a realised loss of $1.3 million on the sale of the company's holding in RMG and writedowns of $5.3 million on discontinued property developments.

CEO Alan Clarke told shareholders last month that repositioning the company to take advantage of opportunities in the wider healthcare market will complement its core operating assets - hospitals, nursing homes and Ranworth's clinical rehabilitation facilities.

"These are providing good EBITDA yields on the back of strong occupancy and service levels."

"We aim to expand our existing core cash flow medical businesses with other health and medical opportunities to offer an attractive investment base for current and future shareholders."

ElderCare says it has a unique opportunity to move into a listed medical/health operating company by concentrating on new investments in the health care market and not be constrained purely to the retirement sector.

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