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Highlights:
- Revenue grew by 17.5% this half-year.
- Shift from a loss to a net profit.
- Expansion through strategic acquisitions.
Regis Healthcare Limited (ASX:REG) delivered a compelling half-year performance ending 31 December 2024, reflecting a strong recovery and strategic momentum. The company posted a 17.5% increase in revenue, reaching an impressive $564.17 million. This surge in topline growth demonstrates the effectiveness of its operational improvements and sound management practices.
A standout element of the report was the financial turnaround. Regis Healthcare reversed a challenging period by reporting a net profit after tax of $24.36 million, a striking improvement from the $12.14 million loss in the comparable period last year. The transformation is further underscored by a significant enhancement in basic earnings per share, which advanced to 8.09 cents compared to a loss of 4.03 cents previously. This renewed profitability underscores the company’s focus on efficiency and disciplined financial execution.
Operational performance remained robust, with the residential aged care portfolio exhibiting strong demand and effective management. The average occupancy rate climbed to 95.7%, while the spot occupancy rate reached 95.1%, indicating that the facilities are operating near full capacity. Such high occupancy levels signal confidence in the quality of services provided and a sustained demand for aged care solutions.
In addition to its strong operational and financial results, Regis Healthcare reaffirmed its commitment to stakeholders through an interim dividend. On 24 February 2025, the Board of Directors approved a dividend of 8.09 cents per ordinary share, amounting to a total distribution of $24.36 million. With 60% of the dividend being franked, this distribution is scheduled for payment on 10 April 2025, with a record date of 14 March 2025. This decision further highlights the company’s commitment to sharing its success with its investors.
Strategic growth was also evident in the company’s acquisition activities. On 2 December 2024, Regis Healthcare expanded its footprint by acquiring two residential aged care homes on the Mornington Peninsula, Victoria, from Ti Tree Operations Pty Ltd for a net consideration of $40.35 million. This acquisition, which added 262 operational places, has already contributed $2.58 million to revenue. Moreover, in January 2025, an agreement was reached to acquire BodeWell Community Care, which will broaden the company’s range in home care services.
The half-year results highlight a period of robust growth and strategic expansion, setting a promising course for continued progress in the aged care sector.
