This article is from the Australian Property Journal archive
LISTED retirement and aged cared company Aevum has lifted its FY10 guidance following a successful merger with IOR Group.
The merger has made Aevum one of the largest pure retirement living and aged care companies listed on the ASX and resulted in a 44% increase in retirement living units to 3,100 and an 80% increase in aged care to 367 beds.
Aevum managing director Steve Mann said three months after the merger the company has identified synergy benefits of $4 million.
“At our half year results we increased our operating cash flow guidance to $24.4 million, 15% above FY09. Our guidance had regard to the improving cash flow coming from the Aevum business and was based on the conservative assumption that the IOR business, during transition would mitigate the integration costs to be expensed of approximately $3 million.
“We are now pleased to advise that the Aevum business together with the IOR villages are outperforming this forecast and the directors provide upgraded guidance for FY10,” he added.
Mann announced operating cash flow of $27 million to $29 million, compared with $21.2 million for FY09 (previous FY10 guidance of $24.4 million)
Aevum expects to deliver a net profit after tax of $14 million to $16 million, compared with a loss of $12.2 million for FY09 (no previous FY10 guidance).
And a final dividend of 3 cents and a total of 5 cents for FY10, compared with 4 cents for FY09 (no previous FY10 guidance).
Australian Property Journal
