Further growth for Ryman after record year
Listed retirement village operator Ryman Healthcare today forecast further growth in the next year after posting a
record $15.3 million annual net profit in 2003.
Chairman David Kerr told Ryman’s annual meeting in Christchurch today they had budgeted for ‘’steady earnings growth in
the 2004 financial year’’.
``The results for the first quarter confirm that ongoing earnings have certainly lifted. The group is currently
performing to our expectations.’’ Analysts have tipped Ryman to join the NZSX50 later next month. Ryman sit around No.34
in the market on capitalisation. ``We now have over 85 percent of the company’s shares being held by shareholders other
than those you might call cornerstone shareholders and we are now seeing daily share trading in the order of 100,000 per
day.’’ He said the record 2003 financial year to March 31 was very satisfactory for the company. As well as the $15.3
million (38 percent increase) net profit, revenue increased by 53 percent compared to last year with revenue totalling
$94.3 million. The revenue gain came on a 52 per cent increase in sales.
Ryman managing director Kevin Hickman said a change in government funding will improve care for elderly in New Zealand.
On the October 1 the government will devolve the funding of aged care from the Ministry of Health to the 21 district
health boards.
``We believe this will create further opportunity for Ryman as one of the most efficient providers of long stay resthome
and hospital care,’’ he said. Ryman operates 12 retirement villages and has won approval to construct the company's
largest village, next to the Remuera golf course, in Auckland. A new site has also been acquired in Napier. Construction
work will be seen on these sites next year. Focus for further development continues to be on North Island centres. Ryman
provide homes and care services to more than 2000 New Zealanders, employing more than 1000 staff. The company is the
leading retirement village operator in New Zealand on profitability. Already 10 villages have passed the Ministry of
Health new quality certification process which is an outstanding achievement, Dr Kerr said.