Retirement home operator finally cashflow positive
A Christchurch-based care home operator that recently listed on the Australian stock exchange generated its first positive free cash flow in a decade but still reported a loss.
Ryman Healthcare announced on Thursday that it had positive free cash flow of NZ$56.2 million (US$49.1 million) for the six months to September 30, down from negative NZ$52.5 million (US$45.9 million) in the previous half.
The company posted a net loss after tax of NZ$45.2 million (US$39.5 million), down from NZ$82 million (US$71.7 million) a year ago, when Ryman’s profitability was boosted by fair value movements in its property portfolio.
Second half revenue rose 13 percent to NT$413.8 million ($361.8 million), while costs fell two percent.
The company has 40 retirement villages in New Zealand and nine in Melbourne.
It listed on 1 October and maintains its primary listing on the New Zealand stock exchange.
Chief executive Naomi James said Ryman had turned the corner and reset its balance sheet following a NZ$1 billion equity capital raise in February and a NZ$2 billion refinancing of bank facilities in November.
Ryman’s net debt as of September 30 was NZ$1.65 billion (US$A1.44 billion), down NZ$14.1 million (US$12.3 million) from six months ago.
“The business has stabilized, momentum is returning, and we are delivering results that make meaningful progress against FY26 priorities,” Ms. James said.
Ryman sold 674 units in the first half, down from 452 units in the previous half, but down from the 800 units it sold in the previous two halves.
Ryman said local property markets were recovering at different speeds, with Victoria faring better, New Zealand regionally mixed and Auckland yet to show meaningful improvement.
Ryman scaled back its development activities and reduced its facilities under development from seven to four.
Ryman’s ASX-listed shares were up 2.4 per cent at $2.57 by midday, having gained 12.7 per cent since their initial listing.
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