Ann: FLLYR: SUM: Financial Results for the Year E

• Release Date: 25/02/13 10:33
• Summary: FLLYR: SUM: Financial Results for the Year Ended 31 December 2012
• Price Sensitive: No
• Download Document  4.73KB

					

SUM
25/02/2013 08:33
FLLYR

REL: 0833 HRS Summerset Group Holdings Limited

FLLYR: SUM: Financial Results for the Year Ended 31 December 2012

NZX AND MEDIA RELEASE

25 February 2013

SUMMERSET RESULTS SHOW SIGNIFICANT GROWTH

-Underlying profit for FY12 up 88% on FY11, 56% above IPO forecast
-Net profit after tax up 243% on FY11, 12% above IPO forecast
-Net operating cash flow up 52% on FY11, 27% above IPO forecast
-Total sales of occupation rights up 43% on FY11
-160 units delivered, 31% increase on FY11
-2012 final dividend announced

Retirement village and aged care operator Summerset Group today announced an
88% increase in its underlying profit.

The $15.2 million result was 56% above figures forecast at the company's 2011
IPO.

The Wellington based company exceeded both prior year and forecast figures,
more than tripling its net profit after tax result on the previous year.

Net profit after tax (NPAT) for FY12 was $14.8 million - 243% above FY11 and
12% ahead of IPO forecast.

Summerset has also announced its first dividend for shareholders of 2.5 cents
per share. This represents a total dividend of $5.4 million, an increase of
25% on the IPO forecast.

The company has established a dividend reinvestment plan to further its
growth path. Its major shareholder QPE Funds Management has indicated it will
support the plan.

Managing director and CEO Norah Barlow said 2012 had been a year of
significant growth for Summerset.

"Our financial results reflect another year of hard work and commitment to
driving this company forward.

"We purchased two new sites in Auckland, opened our village in Dunedin and
began development in Katikati - our first Bay of Plenty village. It has been
another good year for us and I am pleased the financial results reflect
this."

The company is working through the planning process for its Karaka and
Hobsonville villages. The company is continuing to examine new sites across
the country.

The new Auckland sites lift the Summerset's land bank to 1,400 retirement
units.

"We are also increasing our focus on care provision and will be looking to
build substantial care facilities of up to 80 beds at both of our new
Auckland sites," Mrs Barlow said.

"There is demand for care in retirement villages, especially care provision
into care apartments. We are working to meet that demand. This is not only
through focusing on building care beds but also looking at innovative ways to
meet our residents' care needs - care apartments are one way to do this."

The company saw its second year of record sales with a 43% increase in the
sales of occupation rights for 2012. Gross sales for the year were more than
$100 million - this is the first time Summerset has achieved this figure.

Mrs Barlow said demand was strong across all 15 villages. Summerset was
working to meet that demand by supplying new units quickly.

"Our results were driven by very good sales and a continued strengthening of
the company's internal development capabilities," she said.

Summerset completed 160 units built across four sites, up 31% on the previous
year and ahead of its 2012 target build rate.

In November 2012, The company upgraded its longer term build rate to 300
retirement units per annum by the end of the 2015 financial year. Guidance
given during IPO was for 150 units per annum by 2016.

"Our strong sales of occupation rights, range of quality new sites, and
increased efficiency through the in-house management of the development and
construction process has increased the rate at which we can expand.

"We have the banking facilities to enable this and are not seeking additional
funds from our shareholders."

The build rate of 300 retirement units per annum represents 18% annual growth
on Summerset's current portfolio of 1,646 retirement units.

The value of the company's total assets has grown 14% to $702 million from
$617 million in 2011.

Summerset was also named Best Retirement Village Operator for the third
consecutive year at the Australasian over 50s Housing Awards.

Summerset chairman Rob Campbell said Summerset was continuing to grow and
perform.

"The company has been performing well and has been making good progress in
all key areas."

This is the Wellington based company's second set of results since it listed
on the New Zealand Stock Exchange in November 2011. Summerset became part of
the NZX50 in December 2012.

Established in 1997 Summerset owns 15 retirement villages nationwide offering
both retirement village living and aged care.

ENDS

For investor relations enquiries:

Julian Cook
Chief Financial Officer
[email protected]
04 894 7310 or 029 894 7310

For media enquiries:

Harriet Palmer
Communications Advisor
[email protected]
04 894 6993 or 027 601 2001
End CA:00233384 For:SUM    Type:FLLYR      Time:2013-02-25 08:33:08