Funding cuts by Federal government took away Regis Healthcare’s (ASX: REG) earnings as the ASX listed aged care services provider reported lower EBITDA of $117.1 million for the financial year ended 30 June 2018.
This represents a 5% decline in group’s EBITDA, driven by Federal Government cuts to residential aged care funding, indexation freeze, and the expenses associated with changes to the ACFI funding instrument. As a result, earnings per share was 1.79 cents, which was well below the market expectation of 1.84 cents.
Reported net profit after tax declined to $53.9 million in financial year 2018 compared to $61.1 million in previous year. This downfall of 12% reflects the impact of occupancy pressure resulting from influenza and gastro as well as the negative effects of funding cuts declared by the government. However, group’s normalized NPAT was in line with guidance provided in interim results.
On the upside, company reported increased revenue of $594.4 million compared to $565.5 million in FY17, reflecting uplift from new facilities as the total operational places increased from 6,029 to 6,753. This makes it the revenue per occupied bed day to $283, up from $281 in the prior year.
The company declared the final dividend of 8.65 cents per share, payable on 26 September 2018 with the record date of 12 September 2018. This fully franked final dividend will take the FY18 total dividend to 17.93 cents per share.
Ahead of greenfield developments and higher revenue, Regis Healthcare’s share price climbed 5.09% to $3.510 as on 5 September 2018.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.