Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Metlifecare 1H profit falls 69% as merger gains wash through

Metlifecare first-half profit slides 69% as merger gains wash through

By Paul McBeth

Feb. 28 (BusinessDesk) - Metlifecare, the retirement village operator and developer which counts the New Zealand Superannuation Fund and Infratil as cornerstone investors, reported a 69 percent drop in first-half profit as the gains from last year’s merger with Vision Senior Living and Private Life Care Holding wash through.

Net profit dropped to $26.8 million, or 12.76 cents per share, in the six months ended Dec. 31 from $87.4 million, or 48.51 cents, a year earlier, the Auckland-based company said in a statement. Underlying earnings, which strips out the one-off gains in 2012 and movements in the value of its property portfolio, jumped 77 percent to $15.3 million.

Income gained 6.2 percent to $46.2 million on increased deferred management fees. The retirement village operator reported 19 sales of units and 172 resales, generating cash of $69.7 million. That was down from 59 sales and 192 resales a year earlier when the benefits of the merger were recognised.

“Constrained stock levels in the high demand Auckland area impacted on both sales and resales during HY14, however volumes are expected to rise as new stock from Metlifecare’s development pipeline becomes available,” it said. “Metlifecare is progressing a number of large development opportunities as it focuses on building its portfolio and achieving its target build rate of 200+ units per year by 2015.”

The company is focusing its development in Auckland, Hamilton and Bay of Plenty, which it sees as having large ageing populations in need of quality retirement and aged care facilities.

“We have a number of exciting development projects currently underway and continue to identify and assess suitable land sites, particularly in the upper North Island,” chairman Peter Brown said. “The property market within our targeted geographical regions continues to perform well and we are taking a carefully considered approach to land acquisitions in these areas.”

Brown said the company is looking at opportunities to build Metlifecare’s capabilities and cut costs as it advances its development pipeline.

The board declared an interim dividend of 1.25 cents per share, payable on April 17, with an April 3 record. That’s up from an interim dividend of 1 cent per share a year earlier.

The shares fell 1.2 percent to $4.15 yesterday, and have gained 4.8 percent this year. The stock is rated an average ‘hold’ based on five analyst recommendations compiled by Reuters, with a median target price of $4.31.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news