Australia’s leading aged care provider, Estia Health Limited (ASX: EHE) today, as at 16 August 2018, reported 4.1% increase in FY18 EBITDA to $90.1 million which is in line with earnings growth guidance.
Net profit of the company increased by 1.1% to $41.2 million on the back of average occupancy of 94.2% and operating revenue growth of 4.3% to $547.1 million. Estia financial results for the year ending 30 June 2018 indicated the stabilization in care services business notwithstanding the higher wage cost, and unfavorable change in government laws, among other challenges.
Departing Chief Executive officer of Estia Health, Norah Barlow stated that the company had successfully maintained the earnings before interest tax depreciation and amortization margin despite having staff cost pressure during the year.
The group has opened two new homes which include Twin Waters in Queensland and Kogarah in New South Wales, adding to the building capacity of the company with 136 new beds over the past 12 months.
The company declared fully franked final dividend of 8 cents per security, representing a 100% payout of Net Profit After Tax for the period. The dividend is scheduled for payment on 28 September 2018 with a record date of 7 September 2018.
In relation to the recent announcement of CEO and COO succession, Estia’s Chief Executive Officer Norah Barlow confirmed the seamless transition on her stepping down in November 2018 and Ian Thorley, Deputy CEO, advancing to the role of CEO. The company expects investment of up to $115 million on the outlook for FY19. It also forecasts mid-single digit percentage growth in EBITDA on its existing portfolio.
Following FY18 results announcement, EHE stock plunged by 0.946% to $3.140 on 16 August 2018.
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