Ryman expects to match first-half 'realised' profit of $29 million in second half

Friday 11th December 2009

Ryman Healthcare, the rest-home operator whose shares have surged about 50% this year, expects earnings in the second half to match the first six months of the financial year on demand for its units.

‘Realised’ earnings climbed 12% to $29 million in the first half and “we expect to match this performance in terms of realized profits in the second half,” chairman David Kerr and chief executive Simon Challies said in the company’s first-half report.

Realised profit excludes deferred tax charges and unrealised movements in the value of property. Ryman has benefited from the downturn in development and building activity by continuing to build new villages, tapping strong demand for units from the nation’s “fast-growing 80-plus population,” they said.

The company has had sufficient funds to continue its expansion at a time when the pool of capital available to fund new projects “has all but dried up.”

As at Sept. 30, Ryman had about $70 million of undrawn bank debt facilities and added Commonwealth Bank of Australia to its existing banker ANZ National Bank during the year. Undrawn facilities are “more than sufficient to fund the current growth aspirations,” it said.

Shares of Ryman climbed 0.5% to $2.09 on the NZX 50 today. The shares are trading at about 16 times earnings and are rated ‘outperform,’ based on the consensus of six recommendations compiled by Reuters.

The company owns 21 villages and plans to open two more this year.

Businesswire.co.nz

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