Aged care and retirement village operator Oceania Healthcare has reported a net profit for the six months ended November 2020, up 67 percent to $25.8 million dollars, with sales volumes up 44 percent on the previous year.
"The company achieved very strong sales volume across both new sales and resales over the first half of the financial year, as well as experiencing continued strong demand for our premium care suites across the country," said chief executive Earl Gasparich.
Revenue rose 7 percent to $105m, with cashflow up 31 percent to $74.6m as a result of strong sales volumes, with no Covid-19 cases recorded to date in any of Oceania Healthcare's aged care centres or retirement villages. Oceania Healthcare’s aged care segment has demonstrated incredible resilience, despite the restrictions of the Government lockdowns.
Aged care occupancy also increased to 92.1%, compared to 91.6% the previous year.
“We opened 61 new care suites at Green Gables in Nelson last September as we continue to successfully execute our aged care strategy through the redevelopment of our brownfields sites, and our care suite sales volumes have experienced a fivefold increase over the past three years”.
Oceania Healthcare’s significant development programme continues to be delivered on time and on budget, with Oceania Healthcare on track to complete 217 aged care beds and
retirement village units by the end of this financial year (31 March 2021). Oceania Healthcare has resource consents in hand for 84.2% of its 1,780 unit/bed development pipeline which is planned to be delivered over the next six years.
In the second half of the year, Oceania Healthcare is scheduled to complete retirement village apartments at The Bellevue in Christchurch and The BayView in Tauranga, with a further three brownfields developments and one greenfields development underway.
“We were very pleased with our $125.0 million inaugural domestic retail bond issue in October 2020 that has provided us with a diversity of funding and tenor and will help facilitate
Oceania Healthcare’s future growth.” said Gasparich.