This article is from the Australian Property Journal archive
RESIDENTIAL aged care provider Regis Healthcare (ASX: REG) posted a net loss of $21.4 million, despite growth across several key metrics.
Regis’ statutory net loss after tax for FY24 was impacted by non-cash bed licence amortisation and comes after a loss of $28.4 million in FY23. Net profit after tax before amortisation of operational places was at $35.6 million up 24.7% from FY23’s $28.5 million. Underlying EBITDA was at $107.2 million, up 28.7% from $83.3 million in FY23.
The board will pay final dividend of 6.64 cents per ordinary share totalling $20.0 million, 50% franked.
“Regis has delivered excellent growth in FY24 across key metrics including occupancy, revenue, underlying earnings and cashflow,” said Linda Mellors, CEO and managing director at Regis.
“Funding has improved under AN-ACC to meet the care minutes mandate, workforce pressures have moderated, and we have completed and integrated the CPSM acquisition of five homes in South-East Queensland. Regis finished the year with a strong balance sheet and active acquisition pipeline.”
Net operating cashflow was up 140% to $252.3 million from FY23’s $105.2 million, including net RAD cash inflow of $141.0 million up from FY23’s $43.6 million. With net cash of $64.9 million at 30 June 2024.
Across the group’s portfolio average occupancy was at 94.1% up from 91.5%, resulting in an increase in occupied bed days from 2.332 million to 2.517 million.
Staff expenses increased by 30% to $776.4 million largely as a result of the Fair Work Commission’s Work Value Case.
Over the year, Regis commenced its remediation payment process and made payments of $28.6 million to address its previous underpayments of employee entitlements.
“The company invested in a number of strategic growth initiatives across FY24. Construction of a new 112-bed residential aged care Home in Camberwell, Melbourne, remains on track to open to new residents by late 2024,” added Mellors.
“We have progressed plans and a program of work for other greenfield developments and continue to invest in the refurbishment and redevelopment of our homes.”
