Metlifecare's profit up 10% on strong sales and better margins

Metlifecare's profit up 10% on strong sales and better margins

Metlifecare has made a strong full-year profit, with steady demand for retirement units and aged care beds, driving up margins and valuations.

A care worker pushes an elderly woman in a rest home out for fresh air.

Metlifecare’s revenue rose 3 percent in the year ending June. Photo: 123RF

The aged care and retirement village operator’s net profit rose 10 percent to to $250.3 million in the 12 months ended in June, compared with $229m the year before.

The underlying profit, which excludes gains in property and asset values, rose 24 percent to $82m.

Revenue rose almost 3 percent to $109.1m.

Chief executive Glen Sowry said the company benefited from strong gains in the value of its portfolio and development margins, with a record 235 units completed.

“What we are particularly pleased about is we have exceeded our accelerated growth delivery targets in terms of new development,” he said.

“We’ve also seen strong financial performance in terms of the sales prices we have been able to achieve for both our new and existing units in the market.”

Metlifecare’s full year dividend is up 40 percent on the year earlier to 8.5 cents a share.

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Published at Mon, 28 Aug 2017 00:58:58 +0000