Aged-care provider Promisia Healthcare reported a net profit of $2.4 million in the 12 months ended March 31 – with help from government funding.

The company had a big increase in revenue to $20.1m, up from $6m, partly due to this being the firm's first full year in operation as an aged-care business. Previously it was a dietary supplements supplier.

Promisia said in a statement to the NZX today that about 67% of its revenue came from the government's aged-care subsidies, with the rest coming from private payment.

Promisia chair Stephen Underwood said it operated in a sector with attractive dynamics and was well positioned to “build off its small footprint and grow”. 

“We have a carefully considered and diversified strategy and are putting the infrastructure in place to allow us to scale up in size,” he said.

“We have identified growth opportunities, both within our existing footprint and through acquisition, and look forward to delivering on these opportunities.”

Earnings excluding fair value movements (Ebitdaf) were $4.5m for the financial period, with four new sales and thirteen resales of occupation rights agreements (ORAs) completed during the period, the company said.

Promisia threw in the towel on its dietary supplements business back in 2019 when it jumped into the aged-care facility sector and became a backdoor listing vehicle for four aged care facilities owned by its major shareholder. 

At the time, the proposed transaction was valued at about $31.3m by Promisia.

Promisia isn’t the only aged-care facility that reported good earnings this week – yesterday Radius Residential Care reported a 52% annual profit boost of $2.6m, with revenue at $132m, up from the previous year’s $121.2m.