Ann: HALFYR: SUM: Financial Results for the Half

• Release Date: 13/08/13 10:33
• Summary: HALFYR: SUM: Financial Results for the Half Year Ended 30 June 2013
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SUM
13/08/2013 08:33
HALFYR

REL: 0833 HRS Summerset Group Holdings Limited

HALFYR: SUM: Financial Results for the Half Year Ended 30 June 2013

NZX, ASX AND MEDIA RELEASE

13 August 2013

SUMMERSET UNDERLYING PROFIT REACHES $10 MILLION FOR HALF YEAR

o Underlying profit for half year 2013 $10.0million, up 45% on half year 2012

o Net profit after tax for half year 2013 $10.8million, up 174% on half year
2012
o Two new site purchases announced: New Plymouth and Trentham
o Total of three new sites acquired to date in 2013
o 116 new sales of occupation rights, up 40% on half year 2012
o Operating cash flow of $43.4million, up 51% on half year 2012
o Total assets of $764 million, up 19% on half year 2012
o 102 units completed. On track to deliver target of 200 for full year

Summerset Group Holdings Limited has announced its half year 2013 results,
showing continued growth across the company.

The retirement village developer and operator's net profit after tax for half
year 2013 was $10.8 million, up 174% on the first half 2012.

Underlying profit of $10.0million for the half year 2013 was up 45% on the
same period in 2012.

Sales of occupation rights on new units were up 40% to 116, driven by an
increasing portfolio and good demand for its offering.

Managing director and CEO Norah Barlow said, "After a successful 2012, our
focus has been on continuing to grow our village portfolio, increasing our
sales of occupation rights, and continuing to produce excellent outcomes for
our shareholders and residents alike.  We have seen sales of occupation
rights grow strongly in the first half of the year and are seeing good
waitlists in all of our villages."

Over the half year, Summerset completed 102 new retirement units across six
sites. Its full year target is a minimum of 200 units. A 41-bed care facility
in Warkworth was also opened as part of the Warkworth main building in the
first quarter. Additional care facilities are expected to be added on other
sites before the end of the year.

"With six villages under development and three main buildings under
construction, we are in a good position to reach our full year target," Mrs
Barlow said. "Bringing construction management and design in-house has
continued and this year for the first time we will internally manage the
construction on a majority of the sites where we build."

As well as these financial results, Summerset is pleased to announce it has
secured two new land sites, bringing the total new sites purchased in 2013 to
three.

The group is purchasing land in both Trentham and New Plymouth, bringing the
number of sites in its landbank to five along with Hobsonville, Ellerslie,
Karaka and Lower Hutt. The new site at Trentham is adjoining an existing
Summerset village.

These acquisitions increase Summerset's land bank to six years, based on an
annual build target of 300 retirement units per annum by 2015.

Summerset plans to build more than 150 homes on the 4ha site in Carrington
Road, New Plymouth. The village will have townhouses and villas for
independent living, and care apartments and care rooms for those with more
advanced needs. Care integrated into a village in this way provides residents
with certainty that should they require more care as their needs change, it
is provided on site.

The village will be on the edge of New Plymouth, enjoying a rural outlook
with views to Mt Taranaki.

The 4ha site at Trentham, Upper Hutt, will enable the company to extend its
existing 5.4 ha Summerset on the Course village by more than 100 units.
Summerset intends to build new recreational facilities, care apartments and
care beds to the already 124 retirement units and 41 care beds at the
village. Residents in new units will enjoy the same village feel on the edge
of the Trentham Racecourse. This purchase is subject to final conditions
including OIO approval.

These two acquisitions follow the company's purchase of a unique site in
Lower Hutt during the first half of the year. The site is positioned next to
and overlooks Boulcott's Farm Heritage Golf Club and is located in the
prestigious suburb of Boulcott.

Mrs Barlow said, "Our purchase of a 3.1ha site in Lower Hutt, Wellington has
been a highlight of the first half year. Adding two more sites to our
landbank is the icing on the cake, and shows we have plenty of development
projects in the pipeline and plenty of scope for growth."

Mrs Barlow said Summerset was working steadily toward its full year results.

"Providing high quality care centres staffed by trained and engaged staff is
a fundamental part of our business, and it remains a top priority. Focusing
on our residents and potential residents is what will continue to see
Summerset succeed."

It is expected that the company will declare a final dividend in line with
policy following the full year 2013 results.

Ends

For more information:

Investor Enquiries
Julian Cook
Chief Financial Officer
Summerset Group Holdings Limited
04 894 7310 or 029 894 7310

Media Enquiries
Kimberley Rothwell
Communications Advisor
Summerset Group Holdings Limited
04 894 6993 or 027 601 2001
End CA:00239575 For:SUM    Type:HALFYR     Time:2013-08-13 08:33:23