Third Age Health announces preliminary full year result

FLLYR

Mon, May 30 2022 08:30 am

30 May 2022

Aged care medical services provider, Third Age Health Services (NZX: TAH), has today reported its results for the year ended 31 March 2022 (FY22), delivering a solid performance of Net Profit after Tax (NPAT) growing by 12.7% to $1.2m, despite challenges and sector headwinds during the year.

Key highlights during the period include the appointment of Tony Wai as CEO from October 2021, the completion of an in-depth business review and reset, Board approval of a future-focused strategic plan and acquisition of two community General Practices that will support accelerated growth of our core aged care business. A growing number of clinical practitioners joined the group during the year and the company increased the number of partnerships it has with Aged Residential Care (ARC) providers.

The FY22 result reflects Third Age Health’s first full year as a listed company and expenses associated with this, as well as investment into resources and capability building, a number of one-off expenses reflecting the business reset, and five months’ contribution from Belmont Medical Centre, following its acquisition on 11 October 2021.

Total revenues have increased to $5.9m (FY21: $5.5m), an increase of 7.5% driven by the strategic acquisition of community General Practices, with 61% growth in GP revenues. Existing General Practice, Hawkes Bay Wellness Centre, recorded growth of 23.5%, with revenue for the year of $0.9m (FY21: $0.7m). New General Practice, Belmont Medical Centre Limited, acquired on 11 October 2021, contributed an additional $0.3m revenue since acquisition. Revenue from services to Aged Residential Care facilities was in line with the prior year, with the decision of one client to move services in-house quickly offset by the addition of a number of new ARC partnerships in Taranaki, a new market for us.

Gross margin increased from 60% to 63%, benefiting from the expanded General Practice portfolio.

Total expenses grew in line with planned investment into the workforce and capability and also include a full year of listed and governance costs following listing in February 2021. The result also includes $138,000 of non-recurring expenses, reflecting the business reset during the year.
The lower income tax expense for FY22 of $0.4m (FY21: $0.5), includes a one-off tax credit recognised from share based payments.

The business has a strong financial position generating net operating cashflow of $1.0m. Cash and cash equivalents were $1.1m as at 31 March 2022.

Dividend
The Board has declared a final dividend for the year of 4.05 cents per share (cps). Including the interim dividend of 4.52 cps, the full year dividend for FY22 is 8.57 cps (FY21: 8.02 cps, excluding the special dividend), an increase of 6.9%.

Further information on the financial year is included in the attached announcement.