Text Size Reset Font Size Decrease Font Size Increase Font Size

Ryman Lifts Realised Profits and Dividends

Leading aged care and retirement village operator Ryman Healthcare today announced a realised profit of $53 million for the year, up 5% on the same period last year. Unrealised valuation gains lifted the reported profit under IFRS to $66 million.

Ryman shareholders will receive a 5% increase in the annual dividend - an increase which reflects the growth in realised profits. The final dividend of 2.85 cents per share will be paid on June 26, and the record date for entitlements is June 12.

"We are very pleased to have achieved growth in both our profits and dividends," said chairman Dr David Kerr, "in a year which has been challenging for many businesses."

The year was marked by the very successful opening of the Ernest Rutherford Retirement Village in Nelson, which is now home to over 200 residents and is continuing to expand. The initial stages of the new villages in New Plymouth and Whangarei are now open, and work is well advanced on what will become the Group's 21st village in Orewa.

"Our operating cash flows this year were again very strong at $114 million. This has allowed us to increase our level of dividends, and fund the building of our new villages without the need to raise fresh capital or to increase debt."

Demand for the company's product continues to grow, with sales of retirement village units up 3% on last year with prices steady, and resthome and hospital occupancy at all time highs. This growth in demand reflects the burgeoning elderly population and underlines the growing need for the company's services, irrespective of wider economic conditions.

"We are committed to our new village development programme, and to building 300 units and 100 care beds per annum. Presales for our new villages are strong, we have term bank facilities in place and we have sufficient land to build more than 1,700 new units or beds," said Dr Kerr.

"We are therefore well placed to achieve growth in our realised profits and dividends in the year ahead."

Ryman currently owns 21 villages nationwide, and plans to open two new villages each year. The villages are all designed, built and operated by Ryman. Since listing in 1999 the company has increased profits and dividends nine-fold without seeking any fresh capital from shareholders.

The company is a six times winner of Best Retirement Village in New Zealand, and serves over 4500 elderly New Zealanders.

Note: "Realised profit" excludes deferred tax charges and unrealised fair value movements in investment properties.