Ryman annual net profit up 28%

Media release

Friday 20th May 2005

Retirement village operator Ryman Healthcare today posted a record net surplus of $23.5 million, up 28% on last year.

Ryman increased its annual dividend to shareholders from 9c to 11.5c.

The final dividend of 6.5c will be paid on June 24 and the record date for entitlements is June 10.

Operating cashflow of $53 million was generated during the March financial year and annual turnover was $121 million - up 11%. Equity rose to $186 million, up 26 percent on last year.

`We have had a very good year with rapid expansion and exceeded our target of 15% annual growth. We are committed to replicating our proven retirement village model at an increasing rate,' managing director Kevin Hickman said.

`Our construction capacity has increased significantly and we have employed key staff. We are currently building in Auckland, Hamilton, Napier, Wanganui, Lower Hutt and Invercargill.

`Our Auckland construction team has moved from Grace Joel to the Abbott's Way village site which is expected to contribute to the 2007 financial year,' he said.

Ryman has experienced six years of substantial growth since floating on the stock exchange by continually expanding its portfolio of retirement villages.

It currently has assets of 1203 retirement units and 1077 resthome/hospital beds with a landbank to develop a further 866 units and 391 beds.

`We are very happy with our expansion path and we are committed to achieving a sustainable level of growth,' Hickman said.

During the year Ryman opened the new Princess Alexandra retirement village site in Napier. The village includes 24-hour nursing facilities and will provide homes for 250 elderly people. It became the 13th village in the listed company's stable of retirement villages.

Their other 12 villages, resthomes and hospitals are in Invercargill, Dunedin, Christchurch, Wellington, Lower Hutt, Hamilton and Auckland.

The company provides homes and care services to more than 2500 New Zealanders, employing more than 1300 staff.

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