Oceania pushes up interim profit by $9.9m after sales jump 44%

Business

Oceania’s Green Gables in Nelson. Photo / supplied

Strong sales rising 44 per cent in a six-month period pushed listed retirement giant Oceania Healthcare to make an unaudited net profit after tax of $24.8 million, up $9.9m in the half-year.

In the six months to November 30, the Auckland-headquartered business had big sales rises in independent living apartments/villas, as well as care suites.

No Covid cases were recorded in its many villages.

By last September, the company had finished 28 new apartments and 61 care suites at Green Gables in Nelson.

In the next few weeks, it will complete a further 217 new apartments/villas and new care suites which are like upmarket rest home or hospital beds. That’s its target by the end of this financial year on March 31.

Oceania now has $1.7b of assets, up $177m or $1.7b on the November 2019 half-year.

“The company achieved very strong sales volume across both new sales and resales over the first half of the financial year, as well as experiencing continued strong demand for our premium care suites,” said chief executive Earl Gasparich.

Oceania is expanding fast. Photo / supplied
Oceania is expanding fast. Photo / supplied

Sales volumes rose 44 per cent in what had been an uncertain year. The 20.6 per cent increase in resale volumes was particularly pleasing, he said.

Resource consents have been granted for 84.2 per cent of its 1780-unit/bed development pipeline which are planned to be delivered during the next six years.

In the second half of the year, it plans to finish The Bellevue in Christchurch and The BayView in Tauranga.

Oceania is developing a big new village on Waimarie St at St Heliers where it said construction had begun.

Shareholders will get an interim dividend of 1.3 cents per share, due to be paid on February 24.

Operating cash flow rose 31 per cent $57m to $74.6m and the company also reflected on last October when it raised $125m new capital via a retail bond.

Gasparich said the pandemic had been a boost to the business, not a negative. The sector had demonstrated incredible resilience this year, despite the restrictions of the Government lockdowns.

The business said it had successfully navigated the challenges of the pandemic, with no covid cases to date in any of its aged care centres or retirement villages.