Third Age Health announces preliminary full year result

FY21 Annual Results: Third Age Health Reports 6.8% Net Profit from continuing operations lift on Record Revenues

Third Age Health Services (NZX:TAH), a medical service provider for the aged care sector, has reported an increase in net profit after tax from continuing operations of 6.8 per cent and record revenues for the full year ending 31 March 2021.

Adjusted profit which excludes one- off listing costs of $166,847 increased 23.9 per cent.

Revenue for the year reached a new record of $5.5 million, up 4.4 per cent on the previous year - resulting in pre tax profit of $1.6 million.

The company has repaid all bank debt during the period, helping to position the primary care provider for future acquisitions of medical practices that support growth in their core business.

CEO Michael Haskell says it has been a solid year for Third Age.

He says having successfully completed the listing, the business is well positioned for further growth - both organically and via an acquisition based expansion programme.

“Our share offer to wholesale investors prior to our NZX listing was oversubscribed. We were able to distribute a special dividend to shareholders in March."

“Growth from the two sectors we operate in has continued with the number of patients we care for increasing over the second half of 2021. We believe the current trajectory will see us achieve another positive result in the coming financial year,” he says.

Haskell says the demand for their services is driven by a growing aged care sector and the appeal of their business model which provides patients with a consistent primary care provider relationship.

“Third Age Health is a primary care provider to some of the largest aged care facility operators in New Zealand."

“Our people were exceptional in helping the New Zealand aged care sector manage the disruption of Covid-19 and we couldn’t be more proud of them.”

“Our model provides consistency for a growing market segment that places a high value on a traditional patient care model and the reassurance of having a familiar face as their primary care provider."

“Increased demand from our customers means we are now looking to acquire compatible medical practices - helping us to expand our current team of over 35 primary care providers,” Haskell says.

Bevan Walsh, Chairman of Third Age Health, says the Company has navigated its way through the COVID pandemic well due to its standard operating model which includes the supply of remote management and telehealth services, and which were already well entrenched in the Company.

“New Zealand has been relatively well insulated from the impact of COVID compared to many other markets and while we have seen increased need for our telehealth services at times, our 6000+ registered patients in aged residential care facilities, private hospitals, secure dementia facilities and the broader community still need to be seen regularly by our team of primary care providers.

“The board of Third Age Health acknowledge our operational personnel and practitioners, and our clients’ own dedicated staff, for their absolute attention to meeting patient needs which was especially evident during the COVID lockdowns. It took total dedication, and adaptability, and we thank everyone involved at all levels,” he says.

Dividend
The board is pleased to declare a final dividend of 3.91 cents per share taking the total dividend for the year to 18.28 cents per share. We will continue to target our dividend policy of 75 per cent of net profit after income tax from continuing operations being distributed to our shareholders.

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Announcement PDF