Japara Healthcare Declared Business Results For H1 FY2019

Japara Healthcare Limited (ASX:JHC), based in Southbank, along with its subsidiaries owns, develops, and operates around 5,400 residential aged care facilities across 48 homes located in Queensland, Victoria, South Australia, New South Wales, and Tasmania and 180 independent living units across five retirement villages in Australia. The company recently released its Interim financial report for the half-year ended December 31st, 2019 (H1 FY2019).

According to the report, the Group posted total revenue and other income for the half year at around $ 193.48 million, depicting an increase of $ 10.977 million on the prior comparative period. The Overall revenue growth resulted from an expansion in the number of operational places through strategic acquisitions of existing homes, development of new homes (Greenfields) as well as the construction of extensions to existing homes (brownfields) in line with the growing demand from Australia’s ageing population.

Besides, the EBITDA decreased to $ 22.10 million at the end of the half year, down by $ 2.16 million relative to the prior comparative period. The decline was primarily caused by ~$ 1.42 million of non-recurring capital refurbishment deduction revenue that occurred in 2017 which was subsequently refunded in May 2018, and also a $ 1.74 million revaluation gain in 2017 that did not recur in 2018.

The EBIT and profit attributable to members of the parent were around $ 13.02 million and $ 7.55 million respectively, both down on the prior comparative period mainly because of a rise in the depreciation and financing costs following the acquisition of the Riviera portfolio in April 2018, the opening of Greenfields and completion of brownfields. Besides, the group continued to provide high-quality care to its more than 3,500 residents, attended to by a staff of over 5,000, during the half year and also maintained its 100% accreditation record.

The Group’s major sources of funds remained cash flows from operations and Refundable Accommodation Deposits (RADs) during the concerned period. The net cash derived from operating activities was recorded at $ 30,453,000 (2017: $ 35,078,000), inclusive of $ 22,489,000 of January Government Funding received in advance during December. Also, the net RAD inflows amounted to around $ 28,945,000 (2017: $25,852,000). The Group increased its available bank facilities from around $ 220 million to $ 345 million during the half year, under a new syndicated facility agreement and multi-option facility agreement with its existing lenders.

Japara Healthcare has a market capitalisation of AUD 347.28 million and approximately 267.14 million outstanding shares. At the time of market trading on Monday, February 25th, 2019 at 03:25 PM AEST, the JHC stock price stood at AUD 1.260, down by 3.077%, indicating an intra-day fall of AUD 0.040. Around 791,383 volume of shares were traded in total. Also, the stock has generated a positive YTD return of 11.59%.

The company paid a final dividend, for the year ended June 30th, 2018 of 3.75 cents per share, franked to 50%, on October 30th, 2018 to its shareholders. Further, it has also announced an interim unfranked dividend of 2.80 cents per share, for the half year ended December 31st, 2018, payable on April 30th, 2019.

Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.