This article is from the Australian Property Journal archive
TAKEOVER target and retirement and aged care operator Aevum has bounced back in FY10 to record an operating income of $29.1 million, up 37% from last year.
Aevum’s reported a net profit after tax of $28.6 million for the year ended June 30 which was an improvement from the $12.2 million loss recorded in same period last year. Underlying net profit after tax was $19.3 million. The group declared a final unfranked dividend declared of 3 cents per share up from 2 cents.
Aevum’ managing director Steve Mann said the result for the year had improved significantly compared with last year as the company made substantial progress and built business momentum.
There was a 76% increase in turnover sales to 240 units (comprising a 46% increase for Aevum only to 199 units). Aevum achieved average sales price growth of 2.0% during FY2010, with 11 villages achieving Aevum’s long term target of over 4.5%.
“The FY2010 result delivers on Aevum’s focus of generating continued growth in operating cash flows, and reflects both the emerging benefits of the IOR merger and the strong performance of Aevum’s underlying business,” he added.
Pro-forma underlying operating cash flow was approximately $40 million after adjustments relating to the IOR takeover. Net profit after tax experienced a strong turnaround to a profit of $28.6 million and underlying net profit after tax increased to $19.3 million.
Meanwhile Mann reiterated that Stockland’s $1.50 per share takeover bid is inadequate and advised investors to reject the offer.
Looking ahead, he forecast operating cash flow guidance of $50 million for FY11, representing approximately 25% increase from FY10 pro-forma underlying operating cash flow.
Australian Property Journal
