Ann: FLLYR: SUM: Financial Results for the Year Ended 31 December 2015

• Release Date: 24/02/16 08:31
• Summary: FLLYR: SUM: Financial Results for the Year Ended 31 December 2015
• Price Sensitive: No
• Download Document  6.19KB

					SUM
24/02/2016 08:31
FLLYR
PRICE SENSITIVE
REL: 0831 HRS Summerset Group Holdings Limited

FLLYR: SUM: Financial Results for the Year Ended 31 December 2015

NZX, ASX AND MEDIA RELEASE

24 FEBRUARY 2016

MOMENTUM CONTINUES FOR SUMMERSET, UP 55%

o Underlying profit for FY15 of NZ$37.8m, up 55% on FY14
o Net profit after tax of NZ$84.2m, up 56% on FY14
o $225 million invested into new and existing villages, up 58% on FY14
o Total assets of NZ$1.36b, up 31% on FY14
o 578 total sales of occupation rights, up 26% on FY14
o 303 new retirement units delivered
o Final dividend of NZ 3.4 cents per share
o Development margin of 20.0%, up from 15.7% for FY14
o FY16 build rate target increased to 400 retirement units, up from 300 for
FY15

Retirement village and aged care operator Summerset Group today announced
underlying profit for the 2015 financial year of NZ$37.8 million, a 55%
increase on profit from the previous year.

The result reflects continued momentum for the company which benefited from
strong sales across its nationwide network of villages and an increase in
resales of occupation rights.

Net profit after tax for FY15 was NZ$84.2 million, 56% higher than FY14.
This figure includes unrealised valuation gains in the fair value of
investment properties, land and buildings.  The company's total asset value
increased by 31% to NZ$1.36 billion, up from NZ$1.04 billion in 2014.  The
development margin on new retirement units also increased to 20.0% in 2015,
up from 15.7% in the prior year.

Summerset CEO Julian Cook said that the company's financial performance
reflected Summerset's continued focus on expansion across New Zealand and
delivering on its core focus of bringing the best of life to older New
Zealanders.

"We are very pleased with our results for 2015. Our growing presence in
Auckland coupled with strong demand across our other villages resulted in a
record 578 retirement unit sales.  We opened our first village in
Christchurch, Summerset at Wigram, as well as three village and care centres
in the North Island and commenced construction on our Ellerslie village in
Auckland.  We also delivered a record 303 retirement units across the country
and secured three new sites - which sets us up for continued expansion growth
into the future."

"2015 was a milestone year for us. We achieved our long standing target of
building 300 retirement units and saw our development margin increase to 20%.
At the time of our IPO we had indicated a target development margin of around
17%. These are good results but we continue to look ahead and remain on track
for our build target for 2016 of 400 retirement units."

This is the fifth year running the company has increased its occupation right
sales, up 26% from sales in 2014.  Proceeds from the sales of occupation
rights totalled $208 million, compared with $161 million in 2014, a 29%
increase.

"With a significant lift in investment in 2014, we anticipated a higher level
of earnings growth.  In 2015, we invested $225 million back into the
business. We continue to realise the benefits of our internalised development
model and strong demand across our villages is demonstrating that we continue
to deliver high quality retirement living and care to our residents."

The opening of village and care centres in Katikati, Karaka and New Plymouth
were key milestones over the year for Summerset's developing villages. Mr
Cook said that the village and care centres provide the services, support and
security that residents want and need.

"Our village centres provide a real sense of community for our residents.
They also house our care centres.  Care is critically important to our
overall services to residents and over 2015 we continued to develop this
area.  During the year we introduced a new Head of Clinical role as well as
clinical nurse leads to support our nurse managers. We also began
benchmarking clinical indicators across our care centres which enable us to
measure and maintain our high standards."

It was a busy year for the company in terms of developing villages and
securing new development opportunities.  Summerset purchased three new sites
in Auckland over the course of the year and construction continued on its
Ellerslie location, which is due to open in 2017.  Last week the company also
announced the purchase of a 6.3 hectare site situated in one of the leading
suburbs of Hamilton, Rototuna.

"While we are always looking for opportunities across New Zealand, Auckland
is clearly constrained for living and care services for older people.  In
July we purchased sites in St Johns and Parnell, we also secured a third site
which sits adjacent to our existing village in Warkworth.  These sites are
all very well located and we are looking forward to getting these villages
underway."

Work continued on other development sites across the country, with the
company's second Christchurch site receiving resource consent in September.
Construction is due to commence in early 2017 for the $100 million retirement
village in Casebrook.  As at 31 December 2015, Summerset's total land bank
represented 2,414 retirement units and 406 care beds.

It was also announced today that Norah Barlow will be stepping down as a
director of the company, retiring by rotation at the upcoming Annual Meeting
in April. Summerset Chairman, Rob Campbell, expressed his thanks to Norah.

"Norah has been part of Summerset since the very beginning and on behalf of
the board and shareholders we thank her for her outstanding contribution over
many years."

The board has commenced a search process for a replacement director.

Summerset announced a final 2015 dividend for shareholders of 3.4 cents per
share, bringing the total dividend payment to 5.25 cents for the year. This
is an increase of 1.75 cents per share on the total dividend paid for the
prior year. The dividend reinvestment plan will apply to the dividend, with a
discount of 2% applicable to those shareholders participating in the plan.

ENDS

For investor relations enquiries:
Scott Scoullar
Chief Financial Officer
[email protected]
04 894 7320 or 029 894 7317

For media enquiries:
Jen Murray
Head of Marketing and Communications
[email protected]
04 894 6993 or 027 601 2001
End CA:00278177 For:SUM    Type:FLLYR      Time:2016-02-24 08:31:06