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Oceania Healthcare exceeds IPO forecasts

Contributor:
Fuseworks Media
Fuseworks Media

Oceania Healthcare Limited (NZX: OCA), which listed on the New Zealand Stock Exchange in May 2017, has exceeded reported net profit after tax and pro forma underlying earnings in its IPO forecasts, while using the proceeds of the capital raising to reduce debt and forge ahead with its development programme.

In the year ended 31 May 2017, reported net profit after tax of $44.9m was ahead of the $25.3m forecast in the Company’s Product Disclosure Statement (PDS) due to a significant increase in the valuation of Oceania’s care and retirement village assets. Total assets increased by $135m to $918m following a material increase in development capital expenditure and acquisition of sites, and net debt fell to $84m (from $274m) resulting in low gearing of 15%.

Pro forma underlying earnings before interest, income tax, depreciation, and amortisation (EBITDA) of $45.0m was ahead of the $44.3m forecast in the Company’s PDS.

Oceania Healthcare Chief Executive Earl Gasparich said the Company was firmly focused on delivering the business plan outlined in the PDS.

"Funds raised from the share offer gave us the opportunity to reduce debt and speed up our development plans. Oceania Healthcare has the land, access to capital and in house expertise to accelerate its development programme. In the past year, a block of 44 new apartments at Lady Allum Village in Milford, Auckland, was completed with a further 316 units and care suites currently under construction across five sites" he said.

Oceania Healthcare was also successful in mediation for a resource consent at its Windermere Village in Christchurch. This site will undergo a $50m redevelopment comprising 68 apartments and 60 care suites. This brings the total number of consented units and care suites to 1,072, representing 63% of Oceania‘s total pipeline of 1,708 units and care suites.

"During the financial year, we won the New Zealand Aged Care Association Supreme Winner for Overall Excellence in Care Award for the second year running which illustrates the quality of care we give, plus the expertise and dedication of all our employees".

Oceania Healthcare exceeds IPO forecasts

- Reported net profit after tax and pro forma underlying earnings both exceeded IPO forecasts

- Total assets increased due to significant development capital expenditure, acquisitions and revaluations

- Development programme accelerating with 316 units and care suites under construction

- Successful resource consent mediation for Windermere development in Christchurch

- Supreme Winner Overall Excellence in Care Award

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