- FPH has plans to set up its second campus in Auckland
- FPH’s new campus will mainly have R&D facilities
Fisher and Paykel Healthcare Corporation (NZX:FPH) announced that it had entered into a sale and purchase agreement to acquire land for a second campus in Auckland for NZ$275 million.
As a part of its growth plans, the company is expected to construct a second campus to complement the existing one at the Highbrook development in East Tamaki, Auckland. According to the company release, the current site is nearing its capacity.
The Company sees lots of opportunities going forth and in order to take advantage of those, it is putting plans in place.
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The development of the Campus will take some time and will primarily house employees in R&D, pilot manufacturing, and related roles. This is also likely to give a boost to the local area.
According to Lewis Gradon, CEO of FPH, the Company also has separate plans to develop adjacent areas with improved transportation links and new housing.
The site is 25 kilometres south of the company’s existing campus and approximately 40 kilometres south of Auckland’s CBD. It sits adjacent to a major rail line and is a short distance from State Highway 1 and the site of the proposed passenger railway station at Drury West.
The purchase of the land is subject to approval by the NEW Zealand Overseas Investment Office and will be funded through a combination of operating cash flow and debt facilities.
The Company plans to pay a 10% deposit after it gets approval from the NZ Overseas Investment Office and the rest of the payment will be in a staggered fashion. It is proposed to be developed gradually with the best sustainable design practices.
Financial performance in FY22
The Company’s FY22 results were good with operating revenue 33% above the pre-COVID-19 2020 financial year. However, it was still down as compared to FY21, which was an unprecedented year for FPH. The total operating revenue was NZ$1.68 billion, down 15% over pcp. NPAT was NZ$376.9 million, which was a 28% decline from FY21.
The new campus plan is in accordance with the long-term plan of the Company to double its constant currency revenue every five to six years. For that, the Company plans to grow its investment in R&D activities. The company will include clinical trials for home respiratory support products and growth in new surgical technologies.
On 2 September, the stock was trading flat at NZ$20, at the time of writing.