SUM
12/08/2014 08:30
HALFYR
REL: 0830 HRS Summerset Group Holdings Limited
HALFYR: SUM: Financial Results for the Half Year Ended 30 June 2014
NZX, ASX & MEDIA RELEASE
12 AUGUST 2014
SUMMERSET GROWTH REMAINS STRONG
- Underlying profit for 1H14 NZ$9.4m compared to $10.0m in 1H13
- Net profit after tax of NZ$15.3 million, up 42% on 1H13
- Total assets of NZ$921 million, up 21% on 1H13
- Two new villages opened in Karaka and Hobsonville
- 195 sales of occupation rights, up 3% on 1H13
- 136 new retirement units delivered, up 33% on 1H13, and a first half record
- Interim dividend of NZ 1.4 cents per share announced
Summerset Group Holdings Limited has announced its interim 2014 results,
which show the retirement village operator progressing well with openings of
new villages and care facilities around the country.
CEO Julian Cook said, "The business is trading well and we are investing in
three new village openings this year. Karaka and Hobsonville have just opened
and we are on track to open our New Plymouth village later in 2014. We are
seeing good demand for homes in these villages, and they will all contribute
to settlements over the second half of 2014 as residents move in."
The company's net profit after tax for 1H14 was NZ$15.3 million, an increase
of 42% in 1H13.
Total assets increased over the last 12 months by NZ$157m, and are 21% higher
than 1H13. Over the last three years the total assets of the company have
grown by 69%.
Underlying profit for the first half of 2014 was NZ$9.4 million. This
includes costs related to new village starts and the start-up phase of new
care facilities. In the last 12 months Summerset has opened new villages in
Hobsonville and Karaka, and has opened care facilities in Nelson, Dunedin and
Hamilton. Summerset's New Plymouth village will be opening in the second half
of this year.
The Board has declared an interim dividend of 1.4 cents per share, amounting
to a total of NZ$3.0 million. The Board announced in February that Summerset
will now pay both an interim and a final dividend. There is no change to the
dividend policy whereby the total annual dividend will be between 30-50% of
underlying profit in that year.
The dividend reinvestment plan will apply to this dividend with a discount of
2% applicable to those shareholders participating in the plan.
Resales of occupation rights were strong with a 23% increase on the first
half of 2013 despite similar stock levels. While new sales were 9% lower than
the same period of 2013, this is due to
the timing of retirement unit deliveries. Mr Cook said, "We have just opened
two villages in Auckland, and together with the opening of New Plymouth and
the extension to our Trentham village in the second half of the year we
expect strong settlements of homes over the remainder of 2014."
Both Karaka and Hobsonville villages have seen stages of construction
released early to cope with the high demand.
The company built 136 retirement units in the first six months of 2014 across
six sites, including the two new Auckland sites.
Retirement units were also delivered at existing villages in Nelson, Dunedin,
Katikati and Warkworth.
Mr Cook said, "Having delivered 136 retirement units in the first half of
this year, we are in good stead to achieve our target of delivering 250
retirement units this year. We are on track to achieve a build of 300
retirement units per annum from next year."
As well as faster delivery of retirement units as Summerset heads towards its
goal of 300 retirement units per annum from 2015, Mr Cook said the company is
also seeing increased development margins at developing villages. "We have
now internalised the management of construction on all of our sites, and we
are seeing the results of this coming through in our development margins," he
said.
Construction recently began at two sites the company acquired last year. The
first stage of homes to be built in New Plymouth is underway. The completed
village will have around 150 homes and a village centre with a 49-bed care
facility. First homes are expected to be completed by the end of this year.
Construction also recently began in Trentham, where Summerset's existing
village is to be almost doubled and new recreational facilities built,
including care apartments; an innovation where residents can receive
DHB-certified rest home-level care provided by Summerset, within the comfort
of their care apartment.
Village centres and care facilities have opened at both Nelson and Dunedin
during the first half of the year. The Dunedin village is now complete, while
construction continues at Nelson. A village centre is also under construction
at Summerset's Katikati village. When completed, this village centre will
include a 49-bed care facility.
ENDS
For investor relations enquiries:
Scott Scoullar
Chief Financial Officer
[email protected]
04 894 7317 or 029 894 7317
For media enquiries:
Kimberley Rothwell
Communications Advisor
[email protected]
04 894 6993 or 027 601 2001
End CA:00253730 For:SUM Type:HALFYR Time:2014-08-12 08:30:36
