Metlifecare profits fall 70%
But retirement village operator reports more headroom for debt.
Retirement village company Metlifecare’s net profit has fallen almost 70% over the last year to $20.8 million.
The $46.7 million fall came as revenue from its retirement villages across the country rose 3.6% to $65 million for the year to June 30.
But chairman Greg Flood said the company said created more headroom for debt, which had been slashed $44.5 million thanks to proceeds from the $24.4 million sale of the Merivale Retirement Village in February and $20.1 million of revenue generated internally.
Merivale’s sale, together with higher village operating and maintenance costs saw operating cash flows fall from a net inflow of $3.1 million last year to a net outflow of $500,000.
Mr Flood said total equity was $21 million higher at $526 million as the reduction in bank debt reduced liabilities by $50 million.
Total assets fell $29.3 million or 2.2% to $1,294.3 million.
Metlifecare’s newest retirement village is The Poynton on Auckland’s North Shore.
Shares in Metlifecare last traded at $1,95. The company will not pay a final dividend.
Georgina Bond
Tue, 23 Aug 2011
Tue, 23 Aug 2011
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Metlifecare profits fall 70%
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