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Arvida hits $19.4m in first-half profit

NZ NewswireNZ Newswire 22/11/2016 Sophie Boot

Arvida Group, the retirement village and aged care facilities operator, says it's "on track to deliver a strong FY17 result" after it more than doubled first-half profit.

Net profit rose to $19.4 million in the six months ended Sept. 30, from $7.4m a year earlier, with revenue up 27 per cent to $49.9 million, the Auckland-based company said in a statement.

Arvida, which has 25 villages across the country, also gained $14.3m from an increase in the valuation of its investment properties, an improvement from $3.8m in the first half of the previous financial year.

In October, Arvida completed a $41.8m capital raising by selling about 35.7 million shares with a 90 per cent uptake of entitlements amongst shareholders, to help fund a $66m purchase of two villages in Tauranga and one in Cambridge.

Those purchases were settled in early October and were expected to add an additional $4.4m of underlying profit to Arvida's earnings.

The board declared a 1.1 cent dividend for the September quarter, with a Dec. 8 record date, payable on Dec. 16.

The shares gained 0.9 per cent to $1.15, and have risen 25 per cent this year.

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