You are using an older browser version. Please use a supported version for the best MSN experience.

Arvida full-year profit beats IPO forecast

NZ NewswireNZ Newswire 25/05/2016 Sophie Boot

Arvida Group, which operates 21 retirement villages and aged care facilities, reported annual earnings ahead of its prospectus forecast and said it was confident of further gains in 2017.

Underlying profit, which Arvida has said it will use as its primary earnings measure, was $15.8 million in the year ended March 31, about 19 per cent more than its initial public offering forecast of $13.3m given in December 2014.

Underlying earnings strip out fair value changes to investment property and include the board's estimate of "realised components of movements in investment property value" while eliminating deferred tax and one-off items.

Net profit was $24m, more than double its IPO forecast of $10.6m, on revenue of $82.5m which was 19 per cent ahead of forecast. The company booked a $19.1 million increase in the fair value of its investment properties with its total assets now worth $461 million, up 31 per cent on a year earlier.

"Our first full financial year as a publicly listed company has seen Arvida make substantial progress against the growth initiatives outlined at the time of IPO and deliver strong financial results against IPO forecasts," chairman Peter Wilson said.

Arvida listed in December 2014, having raised $75m in an IPO at 95 cents a share.

The shares last traded at $1.12 and have risen 19 per cent this year.

"The board sees the business continuing to perform strongly," Wilson said. "We have established a business capable of scaling up as the group grows. Well located and operated villages, complemented by potential greenfield opportunities that enhance our national coverage and underpin future growth options will be of interest to us."

The board declared a final dividend of 1.1 cents per share for the quarter, payable on June 17 with a June 9 record date. This brings total dividends for the year to 4.25 cents per share, ahead of the IPO forecast, and Wilson said the company expects to maintain that increased level of dividend.

Arvida paid out 74 per cent of its underlying profit in dividends in the year, within its stated 60-80 per cent range.

image beaconimage beaconimage beacon