Tuesday 23rd November 2021
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NZX listed retirement village and aged care operator Arvida Group Limited has announced a reported IFRS profit of $75.5 million for the six months ending 30 September 2021.
The IFRS profit included unrealised movements in the fair value of investment property that was up from the same period last year when the effects of Covid-19 were less certain.
Underlying profit1 of $26.6 million was reported for the six months, an increase of 30% on first half 2021.
Arvida Chief Executive Jeremy Nicoll said a strong first half had been delivered despite the disruption of New Zealand going into a lockdown again.
Arvida supported its front-line teams through lockdown again with additional hourly bonus payments and increased roster coverage. These additional costs, coupled with the deferral of some sale settlements, were included in underlying profit performance for the half. No relief subsidy was provided by the Government to the sector.
“We have prioritised the health and wellbeing of our people incurring additional to cost to ensure our retirement communities remain safe.”
Arvida expects higher employee costs will be a challenge for the aged care sector into the second half with a constrained labour market and growing disparity in nurse pay continuing.
CEO Jeremy Nicoll said Arvida was preparing for Covid-19 being more prevalent throughout New Zealand as a result of border controls being progressively relaxed.
“Reopening our Auckland care centres so that visits can occur again will be a significant next step. We have already seen considerable benefits through our first steps of facilitating visits for fully vaccinated family and friends in our village gardens,” said Mr Nicoll.
The Arvida Board declared an increased unimputed interim dividend of 2.5 cents per share for the first half. The record date will be 1 December 2021, with payment on 15 December 2021. Arvida’s dividend reinvestment plan will be in operation for this interim dividend with a 2% discount to apply.
Subsequent to the 30 September balance date, Arvida announced a proposal to acquire 100% of the shares in Arena Living for approximately $345 million. A $330 million capital raising was successfully completed to part fund the acquisition. The acquisition was completed on 15 November 2021.
Arvida said total assets are now more than $3 billion following completion.
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