Ann: FLLYR: ARV: Arvida announces FY2015 unaudited financial...

• Release Date: 28/05/15 12:28
• Summary: FLLYR: ARV: Arvida announces FY2015 unaudited financial results in line
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28/05/2015 12:28
FLLYR
PRICE SENSITIVE
REL: 1228 HRS Arvida Group Limited (NS)

FLLYR: ARV: Arvida announces FY2015 unaudited financial results in line

Arvida announces FY2015 unaudited financial results in line with IPO
guidance, declares maiden dividend in line with forecast.

- NPAT of $3.1 million, ahead of IPO forecast
- Underlying Profit  of $4.0 million, in line with IPO forecast
- FY2015 final dividend of $2.3 million (representing 1.03 cps) declared, in
line with IPO forecast
- National footprint established with the successful acquisition of 17
retirement villages and aged care facilities
- Key integration tasks completed
- Existence of synergy benefits confirmed and initial benefits locked in
- New Support Centre team in place with key leaders appointed
- Development of Arvida brand, culture and values across the group
- Arvida affirms FY2016 guidance in line with IPO forecast

Financial Performance

Arvida Group Limited (NZX:ARV) today announced unaudited financial results
for the financial year ended 31 March 2015 in line with the financial
forecasts set out in the Initial Public Offering (IPO) prospectus dated 17
November 2014.

Commenting on Arvida's financial performance, Chairman Peter Wilson said
"this is a very pleasing result within a period of considerable
organisational change that saw a number of milestones achieved.

Arvida is performing well and in line with forecasts set out at the time of
our IPO. This reflects the significant progress made integrating the 17
retirement village and aged care facilities and the benefits resulting from
implementation of our support centre structure, built to manage the group
going forward."

This result is the first to be released by Arvida since listing on NZX in
December last year.  Acquisition of the assets occurred on 17 December 2014
and the unaudited financial results reflect the village operations since
then. Directors anticipate receiving an unqualified opinion from the auditors
in relation to the FY2015 financial statements.

Statutory Result

On a statutory basis, revenue was up $1.0 million on forecast at $20.0
million with care and village fees 2.5% higher than forecast.

Operating profit before financing and offer costs at $6.9 million compares to
the forecast of $3.6 million. Arvida recorded $1.4 million of unrealised
valuation gains in the fair value of investment properties, up $1.2 million
on forecast, and a $1.6 million gain on acquisition of subsidiaries.
Operating expenses were $15.4 million, $0.1 million above forecast.

Operating profit before unrealised valuation gains, one-off items and offer
costs was $0.3 million higher than forecast.

Preliminary statutory net profit after tax attributable to equity holders was
$3.1 million for the year ended 31 March 2015, $5.4 million better than
forecast. Lower IPO costs and a higher allocation of IPO costs to equity, in
combination, delivered a $1.8 million one-off benefit compared to forecast.

Total assets grew to $358.3 million, up $8.7 million on forecast and includes
an $11.0 million increase in goodwill resulting from shares in the IPO being
issued at 95 cents as opposed to a model assumption of 90 cents and from the
gains made on acquisition. Valuations of all retirement village land and
buildings were completed by CBRE as at 31 March 2015. The directors of the
subsidiaries completed a director's valuation of the aged care facilities and
determined that the values had remained constant from 31 March 2014. It is
the intention that all aged care facilities will have an independent
valuation completed on a two yearly basis.  In comparison to the forecast,
$9.8 million of intangible assets relating to operating rights have been
transferred into a combination of investment property and accrued income.

During the period there were 33 resales of existing units and, on a pro-forma
basis over the full 12 month period, 143 units resold. Sales of new units
were in line with IPO forecast.

Dividend

Arvida has declared a dividend of 1.03 cents per share for the year ending 31
March 2015. The record date for the dividend is 12 June 2015, with payment on
22 June 2015. The dividend is partially imputed at 0.24 cents per share.

A supplementary dividend of 0.11 cents per share will be paid on 22 June 2015
to non-resident holders of Arvida shares.

Operational Review

CEO Bill McDonald highlighted the progress made with the integration plan and
renegotiation of terms with a number of key suppliers. The benefit of
procurement savings will be evident in FY2016 and future periods.

Appointments to the senior management team have been made to broaden Arvida's
support capabilities in development, finance, human resources and operations.

"Our intention is to create a lean operating structure enabling us to
implement strategy and support scale increases without burdening the core
business. Central to core operations will be a focus on operational delivery,
finance and business development; thus providing a framework for our
individual properties to deliver strong results. This structure also permits
us to confidently leverage our model, enabling delivery of our real growth
opportunities", said Bill McDonald.

A key operational strategy implemented during the period was the ongoing
development of a common culture with consistent values across the
organisation. In an environment where each of Arvida's properties are
different and formed from a unique heritage, Mr McDonald emphasised the value
in creating a common link and set of behaviours allowing the unique identity
of each individual property to be maintained, while still delivering
consistent service.

At an operational level CEO Bill McDonald said "we have a vision to be true
leaders and innovators in the New Zealand retirement industry.

We are investing in individualised wellness programmes and actively seeking
opportunities to engage our residents in their local communities and the
interests and activities that are valuable to them. We also highly value our
residents' sense of social utility knowing it is key to a healthier and
happier resident population."

In line with our strong focus on care, a group-wide benchmarking analysis of
key clinical indicators is underway, enabling us to continually measure and
improve the quality of care of our residents.

Importantly, occupancy at Arvida's aged care facilities was constant at 94%,
significantly above the national average of 86% recorded in recent DHB survey
data.

Development Activities

A number of developments activities are ongoing within existing villages. As
at 31 March 2015, 5 villas at Park Lane Retirement Village in Christchurch
had been delivered with an additional 3 villas completed since year end.
Refurbishment and enhancement of existing units continues across the group.

The design of the significant developments at Park Lane and Rhodes on
Cashmere is being progressed. Investment decision approval is pending final
planning and feasibility.  Current assumptions anticipate further development
activity commencing 4th quarter FY2016.

Arvida continues to remediate and refurbish its villages in Christchurch
affected by earthquake damage as finalisation of insurance claims with the
insurers proceeds.

Outlook for FY2016

On current expectations, the Board considers the financial forecasts
contained in the Prospectus to be appropriate.

Arvida Chairman Peter Wilson said "The Board is pleased with
progress made to date on implementing the integration plan outlined in the
Prospectus. Focus will continue on the integration program and securing the
related benefits."

Beyond this Mr Wilson said "a number of acquisition opportunities continue to
present themselves. Arvida will continue to investigate acquisition
opportunities that are accretive to the business."

--Ends--

For more information contact:

Bill McDonald, Chief Executive Officer, Arvida Group Limited
Telephone: 021-270-3669 or email: [email protected]

Jeremy Nicoll, Chief Financial Officer, Arvida Group Limited
Telephone: 021-403-665 or email: [email protected]

About Arvida:

Arvida Group Limited (Arvida) is a retirement village group with an emphasis
on providing a continuum of care from independent living through to high
quality aged care services. Arvida has 17 villages located across New Zealand
comprising Glenbrae, Bay of Plenty; Molly Ryan, New Plymouth; Olive Tree,
Palmerston North; Waikanae Lodge, Waikanae; Oakwoods and The Wood, Nelson;
Ashwood, Blenheim; Ilam, The Maples, Mayfair, Park Lane, Rhodes on Cashmere,
St Albans, St Allisa and Wendover, Christchurch; and Bainlea and Bainswood,
Rangiora. Arvida's shares trade on the NZX Main Board under the code ARV. See
www.arvida.co.nz
End CA:00264947 For:ARV    Type:FLLYR      Time:2015-05-28 12:28:25