Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Arvida FY underlying earnings in line with prospectus

Arvida FY underlying earnings in line with prospectus, affirms outlook

By Paul McBeth

May 28 (BusinessDesk) - Arvida Group, the retirement village operator which listed on the NZX last December, reported annual earnings in line with the prospectus forecast, and affirmed its outlook for the 2016 financial year.

Underlying profit, which Arvida said it will use as its primary earnings measure, was $4 million in the year ended March 31, $100,000 below the offer document forecast. Net profit was $3.1 million, or 1.37 cents per share, compared to a forecast loss of $2.3 million, due to a bigger-than-expected increase in the value of its property portfolio. Revenue was $1 million above expectations at $20 million.

"Arvida is performing well and in line with forecasts set out at the time of our IPO (initial public offering)," chairman Peter Wilson said in a statement. "This reflects the significant progress made integrating the 17 retirement village and aged care facilities and the benefits resulting from implementation of our support centre structure built to manage the group."

The company raised $80 million in December, selling shares at 95 cents apiece, to repay debt after bringing together a group of villages. The shares were unchanged at 91 cents today.

The board declared a dividend of 1.03 cents per share, payable on June 22 with a June 12 record date. The company intends to pay 60 percent to 80 percent of underlying profit a year on a quarterly basis.

Wilson said the board affirmed guidance from the offer document, which projects underlying profit to $13.3 million in the 2016 financial year.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

"A number of acquisition opportunities continue to present themselves," Wilson said. "Arvida will continue to investigate acquisitions opportunities that are accretive to the business."

The company's growth focus is on brownfield opportunities, and it's seeking to source sites in areas with "attractive demographics", including land adjacent to existing villages, according to presentation slides accompanying the result.

As at March 31, Arvida held cash and equivalents of $1.82 million, and had drawn down $7.3 million of its $40 million bank facility.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.