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

• Release Date: 25/02/14 10:30
• Summary: FLLYR: SUM: Financial Results for the Year Ended 31 December 2013
• Price Sensitive: No
• Download Document  5.32KB

					SUM
25/02/2014 08:30
FLLYR

REL: 0830 HRS Summerset Group Holdings Limited

FLLYR: SUM: Financial Results for the Year Ended 31 December 2013

NZX, ASX AND MEDIA RELEASE

25 FEBRUARY 2014

SUMMERSET GROWTH CONTINUES - UNDERLYING PROFIT UP 46%

- Underlying profit for FY13 of NZ$22.2 million, up 46% on FY12
- Net profit after tax of NZ$34.2m, up 131% on FY12
- Net operating cash flow of NZ$88.6m, up 34% on FY12
- Total sales of occupation rights up 21% on FY12
- 209 units delivered, 31% increase on FY12
- FY13 final dividend of 3.25 cps announced

Retirement village and aged care operator Summerset today announced
underlying profit for FY13 of NZ$22.2 million. This result is a record for
the company and represents a 46% increase in its underlying profit on the
prior year.

Net profit after tax for FY13 was NZ$34.2 million - 131% above FY12.  This
figure includes $8.4 million of gains in the fair value of greenfield land
held in Auckland as well as the benefit of income tax losses of $2.2 million
being recognised for the first time, given continuity around shareholdings
going forward.

Summerset has also announced its annual dividend for shareholders of 3.25
cents per share. This represents a total dividend of NZ$7.0 million, an
increase of 31% on FY12.

The dividend reinvestment plan will apply to this dividend, with a discount
of 2% applicable to those shareholders participating in the plan.

Managing director and CEO Norah Barlow said 2013 had been a year of high
growth for Summerset and she was very happy with the performance of the
company over the period.

"We purchased five new sites in 2013; Lower Hutt, New Plymouth, Casebrook and
Wigram in Christchurch, as well as additional land adjacent to our Trentham
site. We welcomed our first residents to Dunedin and Katikati, and have
started construction on our Karaka and Hobsonville sites."

The company is working through the planning process for its Lower Hutt,
Ellerslie and New Plymouth villages, as well as the two Christchurch sites.
New sites acquired in 2013 lift Summerset's land bank to over 2,100
retirement units.

"Care continues to be a focus for us and new villages will have larger care
facilities as we move forward," Mrs Barlow said.  "We are always looking at
innovative ways to meet our residents' care needs - care apartments are one
example of this. These are apartments that have been certified by the DHB to
provide rest home-level care to residents in their own home."

The company saw its third year of record sales with a 21% increase in the
sales of occupation rights for 2013. Gross sales exceeded 400 units for the
first time with sale proceeds reaching over NZ$130 million. This compares
with gross sales of $102 million in FY12, a 28% increase.

Mrs Barlow said demand was strong across all 18 villages. Summerset was
working to meet that demand by supplying new units quickly. This was
demonstrated by the completion of 209 units built across six sites, up 31% on
the previous year.

"Our results this year were driven by our in-house design and development
capability, strong sales and our continuing reputation as the best retirement
operator in Australasia, an award we have won four times in a row," Mrs
Barlow said.

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 the IPO was for 150 units per annum by 2016.

Mrs Barlow is to retire in April, and current CFO Julian Cook has been
appointed to replace her.  Mrs Barlow will remain on the Summerset board of
directors.

CEO-designate Julian Cook said, "With a strong development pipeline, in-house
development and design teams, we are well placed to reach our targets going
into 2015."

"We are always looking for new sites on which to build, where we can create
vibrant and active communities to serve the local area. We have plenty of
room for further growth."

The value of the company's total assets has grown 20% to NZ$845 million from
NZ$702 million in 2012.

Summerset chairman Rob Campbell said Summerset was continuing to perform
well.

 "Summerset's development capability, which has been enhanced by taking
development and design in-house over the past few years, is a key part of
this growth. Demand for our villages is strong across the country and our
ability to deliver new units in a timely fashion to residents is key to
meeting this demand.

"The board has welcomed two new directors recently, with Marie Bismark
appointed last September and Anne Urlwin commencing in her new role on the
1st of March this year.  Both of these directors bring significant experience
to the board and will be valuable additions.  The board is now well placed to
carry the company forward following the exit of QPE Funds Management in
2013."

This is the company's third set of results since it listed on the New Zealand
Stock Exchange in November 2011. Summerset became part of the NZX50 in
December 2012. It is also the company's first set of full year results since
listing on the Australian Securities Exchange (ASX) in July 2013.

ENDS

For investor relations enquiries:
Julian Cook
Chief Financial Officer
[email protected]
04 894 7310 or 029 894 7310

For media enquiries:
Kimberley Rothwell
Communications Advisor
[email protected]
04 894 6993 or 027 601 2001
End CA:00247416 For:SUM    Type:FLLYR      Time:2014-02-25 08:30:05