Full Year Results to 31 March 2022

Market Announcement
30 May 2022
PROMISIA HEALTHCARE FULL YEAR RESULTS

Promisia Healthcare Limited (NZX: PHL) has reported its unaudited, preliminary results for the year
ended 31 March 2022 (FY22), marking its first full year of operation as an aged care business,
compared to five months in the previous financial year.
Income was $21.0 million, including an increase in fair value movement of investment properties of
$0.8 million. Revenue is sourced primarily from Government funding (approximately 67%) with the
remainder from private payment. There were 4 new sales and 13 resales of occupation rights
agreements (ORAs) completed during the period.
Earnings excluding fair value movements (EBITDAF
1
) were $4.5 million for the period. The Group
reported a net profit after tax of $2.4 million.

At 31 March 2022, total assets were $52.1 million, including cash and cash equivalents of $2.4m.
Debt was $17.2 million, consistent with prior comparative period, and excludes debt associated with
the acquisition of Aldwins House which occurred post-year end.

Positive progress on strategic initiatives
The company made good progress on its two primary areas of focus during the year - strengthening
the operational platform of the business and the progressive opening of new beds and increasing
occupancy at Aldwins House in Christchurch.
In March 2022, shareholders approved the acquisition of Aldwins House for $13.0 million, which
settled on 1 April 2022 and was funded by vendor finance and new and existing debt facilities. This
purchase now means that all four of Promisia’s facilities are fully owned by the company.
Aldwins House had been operating at a loss. New management, increased occupancy and the
reduction in rental versus interest costs mean that it is now operating at a cashflow breakeven
position. It is expected that a more positive cashflow outcome and trading profits will be realised in
FY23 as occupancy increases.
Investment has been made into business infrastructure to integrate Promisia’s four facilities and
create a strong foundation for growth. This investment includes standardising systems across the
group and investing in people and technology, particularly a new payroll and rostering system. This
work is ongoing with continued investment planned in FY23.
In addition, the Ranfurly Manor Village development in Fielding has progressed well with the ten
new care suites and four of the planned 32 villas now completed. The development is being
undertaken on a fixed cost basis where the developer is repaid from the proceeds of each initial sale
of an ORA for a new villa or care suite. Therefore, this development will not produce any significant
income until the second sale of ORAs for these villas and care suites.

1
EBITDAF is operating earnings before interest, tax, depreciation, amortisation and fair value adjustments and
is a non-GAAP number.

The ongoing COVID-19 pandemic continues to impact on New Zealanders, particularly more
vulnerable older people. Promisia’s focus has been on staff and resident health and wellbeing and
the systems and protocols put in place during 2021 have stood the company in good stead. Training,
recruitment and retention of highly valued and qualified care staff remains a priority.
Chair of Promisia, Stephen Underwood, said: “The majority of our people live locally and play an
essential role in creating the family environment that is such an important part of our facilities. We
are incredibly proud of them and fortunate to have a team of such caring and committed people. On
behalf of the Board and management, we acknowledge and thank every member of our team for
their efforts and the amazing care they provide.”
Following the financial year-end, in May 2022, Promisia was pleased to announce the appointment
of experienced aged care executive, Stuart Bilbrough, as CEO. Stuart takes over the role from Chris
Brown, who stepped down in March 2022. The Board thanks Chris for his contributions and efforts in
establishing a strong operational platform for Promisia from which the company can continue to
grow.
Outlook
New Zealand has an ageing population and there is increasing demand for quality care options,
particularly in provincial New Zealand, that allow people to stay close to family and friends and the
neighbourhoods they know and love. New facilities will need to be built to meet demand,
particularly for higher needs and specialised care. These are areas which are often under-resourced
in terms of aged care and are a particular focus for Promisia. In addition, increasing compliance is
driving sector consolidation with smaller facilities finding it more difficult to remain viable.
In FY23, the company will continue to drive revenue through a focus on the following areas:
 Maximise occupancy at Aldwins House
 Broaden the revenue mix through the sale of retirement villas and increasing the range of
services offered
 Delivering resident-centric care
 Pursue targeted acquisition opportunities that meet Promisia’s criteria
 Continue the development at Ranfurly Manor

Stephen Underwood commented: “Promisia operates in a sector with attractive dynamics and is well
positioned to build off its small footprint and grow. We have a carefully considered and diversified
strategy and are putting the infrastructure in place to allow us to scale up in size. We have identified
growth opportunities, both within our existing footprint and through acquisition, and look forward
to delivering on these opportunities.”
ENDS
For more information, please contact:
Stuart Bilbrough, Chief Executive Officer on +64 252 5778 or email stuart.bilbrough@promisia.co.nz
Stephen Underwood, Chairman on +64 27 499 3387 or email stephen@renouf.co.nz

For media assistance, please contact:
Jackie Ellis on +64 27 246 2505 or email jackie@ellisandco.co.nz.
About Promisia Healthcare
Promisia operates four aged care facilities, specialising in high needs and specialised aged care
(being rest home, hospital and dementia care). It also offers independent living in retirement villas
and apartments. Promisia’s facilities are located in well-established and well serviced towns with
strong communities and close to main centres. The company has a diversified growth strategy that
includes growing its portfolio, developing existing facilities and extending its revenue mix.
Promisia is listed on the NZX (NZX: PHL). www.promisia.com

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Results announcement

(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Promisia Healthcare Limited
Reporting Period 12 months to 31 March 2022
Previous Reporting Period 15 months to 31 March 2021
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$20,118 232%
Total Revenue $20,958 186%
Net profit/(loss) from
continuing operations
$2,199 >1000%
Total net profit/(loss) $2,395 >1000%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend for FY22.
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.000890 $0.000785
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The prior period reflects 5 months of trading since the
acquisition of, and entering, the aged care business on 30
October 2020.
Authority for this announcement
Name of person

authorised
to make this announcement
Stephen Underwood
Contact person for this
announcement
Stephen Underwood
Contact phone number 027 499 3387
Contact email address stephen@renouf.co.nz
Date of release through MAP

30/05/2022

Unaudited financial statements accompany this announcement.