Third Age Health Services (TAH) H2 2024 earnings summary

Executive summary

• Achieved significant organic growth in aged residential care (ARC) and general practice, expanding national footprint and increasing ARC patients by 18% year-over-year, now serving 12.4% of NZ's ARC population from 67 facilities.

• Revenue grew 35% to $15.15m, with core ARC revenue up 39% and general practice revenue up 30% compared to FY23.

• Underlying NPATA rose 148% to $1.71m, and statutory NPAT increased 236% to $1.38m year-over-year.

• Investments in digital clinical platforms, workforce development, and process improvement drove operational efficiency and customer satisfaction.

Financial highlights

• Revenue: $15.15m, up 35% year-over-year.

• Underlying EBIT: $2.61m, up 75% year-over-year; EBIT margin improved to 17.2%.

• Statutory NPAT: $1.38m, up 236% year-over-year.

• Basic EPS: 13.99 cents, up 220% year-over-year.

• Cash and cash equivalents increased to $1.70m; operating cash flow $2.68m.

• Ordinary dividends per share doubled to 10.07 cents.

Outlook and guidance

• Expecting continued organic revenue and underlying profit growth in FY25, though at a more moderate pace than FY24.

• Targeting a long-term dividend payout ratio of 50-60% to support debt repayment and future growth.

• Anticipates further benefits from digital investments and process improvements.