Yes, I remember the Air New Zealand Ansett debacle. Ansett would have looked attractive to Air NZ management who believed they could operate the airline with similar cost structures. The rest is history.
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Well said mate.Quote:
I’m very pleased actually that Norah Barlow looked at the Australian market and strategically decided against it. Until proven otherwise my anticipation is that gross margins will be lower in Vic than NZ, either way, Julian Cook will have a good zero cost guinea pig to study at Wheelers Hill.
Close winner69
Quote:
Financial Results for the Year Ended 31 December 2013
8:30am, 25 Feb 2014 | FLLYR
NZX, ASX AND MEDIA RELEASE
25 FEBRUARY 2014
SUMMERSET GROWTH CONTINUES - UNDERLYING PROFIT UP 46%
- Underlying profit for FY13 of NZ$22.2 million, up 46% on FY12
- Net profit after tax of NZ$34.2m, up 131% on FY12
- Net operating cash flow of NZ$88.6m, up 34% on FY12
- Total sales of occupation rights up 21% on FY12
- 209 units delivered, 31% increase on FY12
- FY13 final dividend of 3.25 cps announced
Retirement village and aged care operator Summerset today announced underlying profit for FY13 of NZ$22.2 million. This result is a record for the company and represents a 46% increase in its underlying profit on the prior year.
Net profit after tax for FY13 was NZ$34.2 million – 131% above FY12. This figure includes $8.4 million of gains in the fair value of greenfield land held in Auckland as well as the benefit of income tax losses of $2.2 million being recognised for the first time, given continuity around shareholdings going forward.
Summerset has also announced its annual dividend for shareholders of 3.25 cents per share. This represents a total dividend of NZ$7.0 million, an increase of 31% on FY12.
The dividend reinvestment plan will apply to this dividend, with a discount of 2% applicable to those shareholders participating in the plan.
Managing director and CEO Norah Barlow said 2013 had been a year of high growth for Summerset and she was very happy with the performance of the company over the period.
“We purchased five new sites in 2013; Lower Hutt, New Plymouth, Casebrook and Wigram in Christchurch, as well as additional land adjacent to our Trentham site. We welcomed our first residents to Dunedin and Katikati, and have started construction on our Karaka and Hobsonville sites.”
The company is working through the planning process for its Lower Hutt, Ellerslie and New Plymouth villages, as well as the two Christchurch sites. New sites acquired in 2013 lift Summerset’s land bank to over 2,100 retirement units.
“Care continues to be a focus for us and new villages will have larger care facilities as we move forward,” Mrs Barlow said. “We are always looking at innovative ways to meet our residents’ care needs – care apartments are one example of this. These are apartments that have been certified by the DHB to provide rest home-level care to residents in their own home.”
The company saw its third year of record sales with a 21% increase in the sales of occupation rights for 2013. Gross sales exceeded 400 units for the first time with sale proceeds reaching over NZ$130 million. This compares with gross sales of $102 million in FY12, a 28% increase.
Mrs Barlow said demand was strong across all 18 villages. Summerset was working to meet that demand by supplying new units quickly. This was demonstrated by the completion of 209 units built across six sites, up 31% on the previous year.
“Our results this year were driven by our in-house design and development capability, strong sales and our continuing reputation as the best retirement operator in Australasia, an award we have won four times in a row,” Mrs Barlow said.
In November 2012, the company upgraded its longer term build rate to 300 retirement units per annum by the end of the 2015 financial year. Guidance given during the IPO was for 150 units per annum by 2016.
Mrs Barlow is to retire in April, and current CFO Julian Cook has been appointed to replace her. Mrs Barlow will remain on the Summerset board of directors.
CEO-designate Julian Cook said, “With a strong development pipeline, in-house development and design teams, we are well placed to reach our targets going into 2015.”
“We are always looking for new sites on which to build, where we can create vibrant and active communities to serve the local area. We have plenty of room for further growth.”
The value of the company’s total assets has grown 20% to NZ$845 million from NZ$702 million in 2012.
Summerset chairman Rob Campbell said Summerset was continuing to perform well.
“Summerset’s development capability, which has been enhanced by taking development and design in-house over the past few years, is a key part of this growth. Demand for our villages is strong across the country and our ability to deliver new units in a timely fashion to residents is key to meeting this demand.
“The board has welcomed two new directors recently, with Marie Bismark appointed last September and Anne Urlwin commencing in her new role on the 1st of March this year. Both of these directors bring significant experience to the board and will be valuable additions. The board is now well placed to carry the company forward following the exit of QPE Funds Management in 2013.”
This is the company’s third set of results since it listed on the New Zealand Stock Exchange in November 2011. Summerset became part of the NZX50 in December 2012. It is also the company’s first set of full year results since listing on the Australian Securities Exchange (ASX) in July 2013.
ENDS
Solid and credible result. Significant land acquisitions this year positions the company extremly well for long term growth. Land bank of 2100 retirement units is 7 years supply based on the projected 2015 build rate of 300 units per annum so the foundations for superb long term growth have been laid in 2013.
Happy to hold long term. (Rome wasn't built in a day).
A sunny day at camp Summerset,all ducks in a line,let the growth curve continue
A good result, an NPAT increase of 131% certainly exceeded NZ First Capitals anticipation of 68% and probably most of the market’s.
Build rate target of 200 adequately met, new unit and resale's up well also.
I particularly like the advice on the increase in build rate expectation from 200 units to 250 units for 2014.
An exceptional report really, onward and upward.
http://www.scoop.co.nz/stories/BU140...th-village.htm
Really like the result. SUM is sitting nicely in my looooongterm portfolio.