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Third Age Health releases 2022 Annual Report

Annual Report16 June 2022TAHConsumer Discretionary

17 June 2022
Annual Report for the year ended 31 March 2022



Third Age Health Services Limited (NZX: TAH) is pleased to release to shareholders its annual report for the

year ended 31 March 2022 (Annual Report).



If you would like a copy of the Annual Report, please request a copy within 15 working

days of receiving this notice. Please email our share registry at operations@linkmarketservices.co.nz



You may also obtain a copy by electronic means, free of charge from our website by accessing the

following link: https://www.thirdagehealth.co.nz/financial-statements/




Authorised for issue by:

Bevan Walsh

Chair




For more information, please contact:

Ruth Morse, Head of Communications, Marketing and Engagement – Third Age Health

+64 21 263 1415

ruthm@thirdagehealth.co.nz


About Third Age Health

Third Age Health is the leader in providing quality health care services for older people including those living in retirement villages, private

hospitals, secure dementia units as well as in communities across New Zealand. A dedicated Third Age Health clinical team provides onsite

clinics, rostered rounds and after hours on-call healthcare services aimed at supporting the health and wellbeing of older people to

improve quality of life. As well as providing clinical services for over 50 aged care facilities throughout New Zealand, Third Age Health

owns several general practices providing primary healthcare to their local community. www.thirdagehealth.co.nz

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ANNUAL
REPORT

2022

thirdagehealth.co.nz

Care | Trust | Kindness
Our goal

To be the healthcare

provider of choice for older

adults living in a range of

settings throughout New

Zealand.

Contents
Consolidated statement of comprehensive income

Consolidated statement of changes in equity

Consolidated statement of financial position

Consolidated statement of cash flows

Notes to the consolidated financial statements

Our business snapshot

Our opportunity

FY22 Highlights at a glance

FY22 Financial summary

Chair report

CEO review

FY22 Highlights and key events

Our team our Board

Directors' responsibility statement

Consolidated financial statements

Independent auditor's report

Statement of corporate governance

Shareholder and statutory information

Corporate directory

03

04

05

06

07

10

15

19

21

22

23

24

25

26

55

59

70

75

Third Age Health currently provides healthcare services for older adults living in
aged residential care (ARC) facilities, care home hospital wings and dementia units.

In addition we provide primary healthcare for people of all ages via a group of

boutique community general practices in key locations.

OUR BUSINESS

We offer community-based, mobile and

virtual services that deliver

quality healthcare.


Our specialised team of around 30 Nurse

Practitioners and General Practitioners

work in partnership with ARC providers

and their care teams.

Through our family of general practices,

we provide quality healthcare for people of

all ages in the community and they are the

'hubs' to extend services to ARC facilities.

We have national reach and currently

provide services to over 50 ARC facilities

throughout the country, including some of

the largest aged care providers in

New Zealand.

Our dedicated clinical teams provide

onsite clinics, rostered rounds and after

hours on-call medical care for residents of

our ARC partners.

3

An ageing population
New Zealand has an ageing population, with the numbers

of those aged over 65 years expected to accelerate over

the next 50 years and account for 23% of New Zealand’s

population by 2036. In May 2022 there was 780,880

people over the age of 65 years, this is expected to more

than double by 2048, when an estimated 1.5M people will

be aged over 65 years.

The 85+ years age group is also forecast to increase by

more than 30% by 2048, from 88,000 people in 2020 to

between 270,000 – 320,000 people.(i)

Increasing healthcare demands as people age

Since the early 1990s, average life expectancy in New

Zealand has gone up by nearly six years, with the average

New Zealander now living up to 82 years of age.(ii)

As people age, their healthcare demands increase, with

those aged over 65 years accounting for 16% of the

population but using over 42% of healthcare services. The

average 85 year old uses 16 times more healthcare than

the average 40 year old.

More emphasis is being put on prevention strategies to

help people age positively and remain healthier for longer.

With increasing numbers of people entering aged care,

often with complex health needs, the demand for quality

healthcare services will continue. Private sector aged care

providers need trusted partners – Third Age Health is

aiming to meet this need.


A desire for continuity of care

The number of people moving into a retirement village is

growing and patients are looking for continuity of care as

they transition to a different living environment.

Workforce headwinds

The aged care sector faces challenges resourcing their

clinical needs due to an aging workforce, smaller numbers

of new people entering the sector, increasing workloads

and low funding for ARC in New Zealand.

There is recognition today that the increasing care needs

in aged residential care are being stretched and that

additional funding and resource will be needed over time.

OUR OPPORTUNITY

(i) National population projections 2020 (base) – 2073, Statistics New Zealand, 8 December 2020. https://www.stats.govt.nz/information-releases/national-

population-projections2073#ageingwww.stats.govt.nz

(ii) Health’s insatiable demand for expenditure, 21 April, 2021. https://berl.co.nz/economic-insights/healths-insatiable- demand-expenditure

Our Strengths

Third Age Health is well

positioned to respond to the

growing market need.


We specialise in providing care for

older people, aged 65+ years.


We have a proactive model of care

focused on prevention and

maintaining quality of life.


At the core of our business are our

partnerships with aged care

providers around New Zealand.


Our specialised aged care clinical

teams work in partnership with

clients to deliver a quality

healthcare service.


Our goal is to be an employer of

choice, providing attractive career

pathways and a rewarding

environment for healthcare

professionals.


We are advocates and thought

leaders for aged care in New

Zealand, continually seeking

improvements in the provision

of care.


4

FY22 HIGHLIGHTS AND EVENTS AT A GLANCE

Third Age Health is making positive progress under its new leadership team, with Board

approval of a future focused strategic plan, ongoing acquisitions of community General

Practices and investment into people, systems and capabilities to enable growth.


First full year as a listed company

Strengthened the leadership team with the appointment of Tony Wai as new Chief

Executive Officer from October 2021 and Neil Hopkins joining the company as Acting

Chief Financial Officer in June 2021

Continued to deliver quality patient care to aged care providers and patients across

New Zealand. Third Age Health’s standard use of remote management and

telehealth services have proved invaluable in the Covid-19 environment

Refreshed the Board with appointment of two new directors - Wayne Williams as an

Independent Director and Diane Budres as a non-Independent Director

Announced the retirement of Bevan Walsh as chair, effective from the conclusion of

the 2022 Annual Meeting, and the appointment of John Fernandes as incoming chair

Wayne Williams announced as incoming Audit Committee Chair to take up the role

when John Fernandes commences as Board Chair.

Business review completed by new CEO and Board approval of a future focused

strategic plan

Growing number of clinical practitioners joining the group

Appintment of a Medical Director, Dr Peter Zink

Establishment of Clinical Team and Clinical Advisory Committee

Signing of new contracts with ARC providers

Acquisition of Belmont Medical Centre, which was settled on 11 October 2021, and

Ponsonby Medical Centre, which settled 31 March 2022

Investment into resources and capability

Strategic progress

5


FY22

$000

FY21

$000

% Change

ARC Revenue4,7124,754(0.9%)

GP Revenue1,18873661.4%

Total Revenue5,9005,4907.5%

NPBT1,5611,5530.5%

NPAT1,1731,04112.7%

Cash at year end1,1241,829(38.5%)

Total assets at year end4,8603,55036.9%

Dividends declared excluding FY21

special dividend (cents per share)

8.578.026.8%

FY22 FINANCIAL SUMMARY


Audited results for the year ended 31 March 2022


Result reflects first full year as a listed company and associated expenses, investment into

resources, a number of one-off expenses reflecting the business reset plus five months’

contribution from Belmont Medical Centre, following its acquisition on 11 October 2021

Performance in line with the record FY21 result, despite challenges and sector headwinds during

the year

GP revenue was up 61.4% of which 23.5% was organic growth from exisiting general practice

Hawkes Bay Wellness

Total revenue $5.9m, up 7.5% year-on-year

Gross margin increased from 60% to 63%

Total expenses increased in line with investment into workforce and capability and include a

number of one-off expenses reflecting the business reset

6

CHAIR REPORT
Bevan Walsh

Chair

Bevan Walsh

Chair


We are pleased to present to you Third Age Health’s Annual Report for

the 12 months ended 31 March 2022, which celebrates our first full

year as an NZX-listed company.

Our first step was the appointment of Tony Wai as our new CEO, who commenced the role in

October 2021. It was very important for the Board that we had someone with the necessary

vision, energy, relationship-building-skills, health system expertise and specific experience to

lead our company.

Tony has spent the last fourteen years in two major organisations within the health sector in

New Zealand, in C-suite roles including Chief Operations Officer, Chief Financial Officer, and

more recently, as interim CEO at Procare. His wealth of experience and vision for how we can

better-serve our clients and patients is already proving of value to Third Age Health.

Dear Shareholder

New leadership

Refining our strategy

When we listed the company in February 2021, we outlined the opportunity we saw to expand

our services and build demand for our innovative, integrated model of care for older people.

Following the appointment of Tony Wai, an indepth business review was undertaken to further

refine our strategy and ensure an appropriate operating model was in place to drive sustainable

long term growth for Third Age Health.

A future-focused strategy has now been put in place, which

revolves around providing a consistent primary health

service as people move from community living into the

aged care setting. We expect our growth to be driven by

increasing the number of partnerships with Aged

Residential Care providers, and through expanding our

offer to people living independently in retirement villages

and in the local community.

Our business model centres on four pillars – workforce and

capability, clinical efficiency and quality, commercial

sustainability and growth, and health innovation. Initiatives

are being progressed under each of these areas.

Your Board’s primary priority during the year was to ensure we had the right strategy and

leadership team in place to enable us to take advantage of the growth opportunities we had

identified for the company.

7


The targeted acquisition of local General Practices (GP clinics) plays an important supporting

role in our strategy. We were pleased to welcome Belmont Medical Centre and Ponsonby

Medical Centre to the group. Since year end, we have also announced the acquisition of

Devonport Family Medicine, further expanding our presence in the Auckland market.

In May 2022, Third Age Health entered into a $3 million loan facility with ANZ Bank Limited to

support the company’s acquisition strategy. A portion of the facility was drawn to fund the

acquisition of Devonport Family Medicine and we intend to make use of it for future

acquisitions.

There is significant opportunity in the sector and, with the right model in place and the

innovation and capability to support it, we are focused on becoming a leading national

provider of healthcare for older people.

Our people

On behalf of the Board, we would like to acknowledge the outstanding efforts of Third Age

Health’s team, who have demonstrated resilience and strength during what has been a

challenging time particularly for the aged care sector. Our people provide an outstanding

service for our patients and our thanks go to them for this.

We are committed to creating value for our shareholders, through share price growth,

dividend yield and continually improving company performance.

We had a pleasing FY22 financial result, with a lift in revenue and profit, despite the

challenges and sector headwinds during the year. This has enabled the directors to declare

a final dividend of 4.05 cents per share, an 6.8% increase on the previous year.

More details on Third Age Health’s financial result can be read in the CEO’s review which

starts on page 10.

Shareholder value

Goverance

Your Board provides a mix of complementary skills, expertise and experience that bring

collective value to Third Age Health. During the year, we were pleased to welcome Wayne

Williams as an Independent Director and Diane Budres as a non-Independent Director.

Wayne was formerly a partner with KPMG and has close to 30 years’ experience within the

health sector, working in line management and consulting roles within primary care, DHBs

and the MOH. Wayne is currently CEO of Alliance Health Plus Trust.

Diane resides in North America and has a background in public health and finance. She has

a passion for higher education and is the founder of The Budres Foundation, a scholarship

program based on learning by doing.

Both Wayne and Diane have provided valued support to the Board team as we further

refined and set out our growth strategy.

8

We are committed to creating a sustainable business, one with a strong long-term outlook which
provides high-quality services to our patients and customers and creates value for shareholders.

New Zealand has a rapidly aging population and there is growing demand from those people who

wish to ‘age in place’. Third Age Health has identified the potential to expand its offer beyond aged

residential care facilities and with an innovative approach and by building capacity we are aiming to

respond to this growing market need.

It's clear in the current tight healthcare labour market that finding and recruiting a quality clinical

team is a challenge and is key to meeting the population needs. It’s fair to say though, that it’s

always been a challenge, and we’ve expanded our reach over the years in spite of it, but it shouldn’t

be forgotten that it is an important factor in our ability to grow, and is always a focus - how we can

attract and retain our professional clinical team to serve our patients and clients.

I believe it will be even more important in future for us to successfully leverage the effects of our

human resources - to efficiently do more with the team we have and even more with those we will

add - not by people working harder (they already work really hard) but by us developing, over time,

more efficient ways to deliver care for our patients, and I expect very good results on this front from

our recent investments in capability that Tony has outlined in his CEO overview on the following

pages.

We have substantial momentum in FY23 as we utilise the additional resources and capability we

have already invested into over the past few months, to execute on our strategy. Our team are

assiduously developing ever more intelligent ways to realise the growth potential for our company,

and we will be innovative and resourceful as we navigate the risks and challenges of the current

environment.

We are excited about our future as we move forward with our new leadership team and a clear

strategy for growth.

Thank you for your support.

Bevan Walsh | Chair


I have also announced my resignation as Chair, effective from the conclusion of the 2022 Annual

Shareholders’ Meeting. Founding a service that provides high quality primary medical care to

older adults and helping to guide it to the point it is at now, has been the highlight of my career.

I am incredibly proud of what has been achieved in terms of health services innovation to date. I

will continue to serve as a Board director and intend to remain a significant shareholder for the

foreseeable future.

I am delighted to announce that John Fernandes has been appointed to succeed me as Chair.

John has been a director of the company since 2019, and serves as our Audit Committee Chair.

That role will be fulfilled by Wayne Williams as soon as John steps into his new role as Chair. I am

excited to see Third Age Health continue to grow and deliver, under the leadership of John as

Chair of the Board and Tony Wai as CEO.

Outlook

9

9

Third Age Health delivered a pleasing performance in FY22, despite challenges and sector
headwinds including ongoing impacts from the Covid-19 pandemic, rising costs and work force

pressures. In particular, the effects of the pandemic and workforce shortages constrained our

progress on some greenfield opportunities.

Following an indepth review during the second half of the financial year, we are now investing

into capability and systems to support future growth. The full year result reflects this investment

as well as a number of one-off expenses related to the business reset and five months’

contribution from Belmont Medical Centre, following its acquisition on 11 October 2021.

Total Revenue increased 7.5% year on year to $5.9m, driven by the strategic acquisition of

community General Practices, with 61.4% growth in GP revenues. Hawkes Bay Wellness Centre

recorded growth of 23.5%, with revenue for the year of $0.9m (FY21: $0.7m), while new General

Practice, Belmont Medical Centre Limited, which was acquired on 11 October 2021, contributed

an additional $0.3m revenue since acquisition. Revenue from services to Aged Residential Care

facilities was in line with the prior year, with the decision of one client to move services in-house

quickly offset by the addition of a number of new ARC partnerships in Taranaki, a new market for

us.

Gross margin increased from 60% to 63%, benefiting from the expanded General Practice

portfolio.

Total expenses grew in line with planned investment into the workforce and capability and also

include a full year of listed company and governance costs following listing in February 2021.

There were a number of expenses totalling $0.14m during the year that are considered one -off

and non-recurring that reflect the period of reset.

Net profit after tax (NPAT) increased by 12.7% to $1.2m.

Third Age Health has a strong financial position with net operating cashflow of $1.0m. Cash and

cash equivalents were $1.1m as at 31 March 2022.

CEO REVIEW

Bevan Walsh

Chair


At Third Age Health, we aspire to be the national healthcare

provider of choice for older adults living in a range of settings

throughout New Zealand. We will do this by providing a

consistent primary health service as people move from

community living into the aged care setting.

It has now been six months since I joined Third Age Health and I

have been inspired by the passion and commitment of our team,

and those we partner with, to providing a quality healthcare service

for older New Zealanders.

FY22 Performance

Tony Wai

CEO

10

Setting a pathway for future growth
When first taking on the role of CEO in October last year, I conducted a deep dive review of our

operating model and sector opportunities. This has allowed us to further refine our strategy to

enable us to achieve our goals. We have identified two pathways to grow our company and

deliver value for our shareholders.

Firstly, to increase the number of partnerships we have with Aged Residential Care providers;

and secondly, to expand our offer to older people in the local community and those living

independently in retirement villages. Acquisition of local GP clinics plays an essential supporting

role in this.

Our growth strategy is supported by attractive sector dynamics including an ageing population,

an increasing need for quality care and escalating demand for qualified clinicians specialising in

providing care for older people.

To support our growth aspirations, we have been investing in capability to enable Third Age

Health to take advantage of the opportunities that exist and to keep growing. We have four clear

pillars which support our business model and already we are making good progress on

initiatives under each of these.

Workforce and capability

As New Zealand’s aging population grows, so does the demand for quality nurses and doctors

who have a passion for providing care for older people. This is a complex, high demand and

growing area, with well documented challenges around resourcing. We take the pressure off our

customers by providing specialised aged care clinical teams to work in partnership with them to

deliver a quality healthcare service.

To support our growth aspirations, we have a need for high quality practitioners. A number of

our practitioners are recruited from offshore, a process that has been particularly disrupted by

COVID-19. With restrictions lifting, we are now actively recruiting to build our team.

Our goal is to be an employer of choice, providing attractive career and development pathways

and a rewarding workplace environment for healthcare professionals. Over the next year, we are

looking forward to introducing a pathway for Registered Nurses to attain Nurse Practitioner

qualifications, enabling them to provide a higher level of care and benefit from increased pay

levels.

We recognise the additional challenges and disruption caused by the pandemic, which has

particularly impacted on the delivery of aged care. On behalf of the Board and management, we

would like to acknowledge and thank the Third Age Health team for their tireless efforts and

commitment to delivering quality care for our patients. It is a privilege to work with these

healthcare heroes who have gone above and beyond in their care over the last year.

11

Clinical efficiency and quality
Underpinning all we do is the provision of high quality healthcare. Our new strategy includes

a reimagined care quality framework and ensures quality is at the heart of the healthcare

service we provide.

We provide continuity of care from trusted clinicians and are advocates for improvements to

support the provision of quality healthcare for older people. In line with this, we have been

expanding our clinical oversight and guidance and, in March this year, established our first

Clinical Advisory Committee. This is a key element of our transition to establish a revised

model of care and quality framework that meets patient and client needs.

The Committee brings together thought leaders and experts from clinical and academic

backgrounds across a range of disciplines. The committee is chaired by Third Age Health

Medical Director, Dr Peter Zink, who was appointed in December 2021. Working alongside

him another new appointee, Clinical Change Advisor Lucy Wu, who was the driving force

behind the establishment of the Committee.

We see this as an important step in not only improving the healthcare we are delivering but

also a way of increasing collaboration across the sector. Our intention is to be action

orientated and the drivers of change and we’re keen to share what we learn along the way in

the hope that it contributes to solving some of the macro level issues and improves

healthcare for older people.

Commercial growth

Our revenue is generated from ARC contractor services, patient enrolment and patient visits,

and we monitor our performance closely.

With New Zealand’s rapidly aging population there is the potential to grow beyond aged care

facilities and to include those people who wish to age in place, and this will be part of our

longer term strategy.

While our core focus remains on the provision and management of healthcare services to

Aged Residential Care (ARC), private geriatric hospitals and secure dementia facilities, we are

now looking to expand our services to older people living in a wider range of settings. This

includes those living independently or in serviced apartments in a retirement village, as well

as those still at home in the community.

The integration of general practice into our operating model builds capability and resilience

around our workforce; and enables continuity of care and a more comprehensive service

offering for our Aged Residential Care facility clients; as well the ability to increase patient

enrolments across both general practice and aged care.

During the second half of the year, we were pleased to settle the acquisition of Belmont

Medical on Auckland’s North Shore, on 11 October 2021, and Ponsonby Medical Centre,

which settled on 31 March 2022 with the benefits to be seen in FY23. Since year end, we have

acquired Devonport Family Medicine.

A number of new service contracts have also been signed with ARC providers, including

seven facilities in Taranaki, a new market for us.

12

Health innovation
One of Third Age Health’s strengths is our

integrated and innovative model of care. We

are harnessing technology and building our

virtual healthcare capability to enhance clinical

efficiency and patient delivery. This has

proved a valuable benefit during the Covid-19

pandemic, allowing us to keep our people and

our patients safe and reducing the risk of

infection, while continuing to provide

personalised care.

Under our business investment plan, more

capability has been introduced to the

company, along with investment into IT

systems and processes to enhance efficiency

and patient delivery. This will enable future

growth and increase our ability to scale to

meet increasing demand.

Our focus on sustainability

Our people, our patients and the teams of

carers at the ARC providers we partner with

are at the heart of our business. As to be

expected therefore, the social aspect of our

ESG philosophy is the most important to us.

We have programmes in place to help our

people realise their ambitions and achieve

their goals. Our Clinical Advisory Committee

will take a lead role in identifying solutions and

advocating for improved care for senior

people. And we will continue to work closely

with other sector organisations to ensure that

together we can develop and deliver the best

possible model of senior care.

While our environmental footprint is not large,

we are conscious of taking steps to minimise

our impact where we can. Our increasing use

of digital technology to deliver virtual

healthcare not only enhances how we deliver

care, but also has environmental benefits with

less travel required.

13

Thank you for your support.


Tony Wai | Chief Executive Officer

We have big aspirations, a clear strategy and great people in place to help us realise our

ambitions. Our focus remains on our key drivers – increasing patient enrolments in our family of

general practices and in contracted aged care facilities; acquisitions of primary care medical

centres; and ongoing business improvements.

Over the next 12 to 18 months, we will continue to build capability, continue execution on our

new strategy and invest into our business and growth initiatives.

We have initiatives in place to expand our reach and are building strategies to attract and retain

a valuable clinical workforce. Our ongoing investment in data and technology will help us

streamline and optimise the delivery of care and will create the ability to scale our business

efficiently. We will continue to identify general practices in key areas to add to our network, to

provide an anchor for local aged care clients.

In FY23, our strategic focus is on building a sustainable platform to enable Third Age Health to

scale and take advantage of identified opportunities for growth.

Outlook

14

14

56
ARC clients

FY2022 HIGHLIGHTS


During the past year Third Age Health has expanded its national footprint with

the addition of a new region; providing medical services to seven ARC facilities

in Taranaki. In addition two new general practices have been added to the

network. Our combined ARC and general practice enrolled population is up

approximately 40% on FY2021.

3

General

Practices*

11,537

Total enrolled

patients**

4,703

Of the total enrolled

patients are 65+ years

* Since year end, 31 March 2022, TAH added another General Practice to its group, Devonport Family Medicine on 2 May 2022, taking the total to four at

time of this annual report publication.

** This figure does not include Devonport Family Medicine as the practice was purchased outside of FY22.

15

Creating a network of community general
practices to support ARC service delivery

Belmont Medical Centre

Belmont Medical Centre serves the Devonport

Peninsula on Auckland’s North Shore, providing

comprehensive quality healthcare to members of

that community. One of its founding doctors, Dr

Jennifer Waddell still works within the practice, and

takes a holistic approach to healthcare.


A key strategy for Third Age Health is to expand our spectrum of care to those

living independently in retirement villages or in the community. Growing our

family of local GP practices is an important component to delivering on this

opportunity. Local GP practices provide an anchor point to provide care

to both the local community and a number of ARCs near by.

"Our team is passionate about providing the best

healthcare for our community. The combination of

providing healthcare in a general practice and for our

local aged care facilities is fantastic as often patients

we have seen for many years in the community move

into aged care locally and we are still able to provide

continuity of care for them in their final years.”

Dr Jenni Waddell

Ponsonby Medical Centre

Ponsonby Medical Centre is the second general practice

purchase for Third Age Health in the 2022 financial year,

following Belmont Medical Centre in late 2021.

“Ponsonby Medical Centre has a very experienced clinical team

who provide great family healthcare for the local community.

As we focus on older adults as a population of interest the

integration of general practice into our operating model plays

an important role in helping us build capability and resilience

around workforce and enables us to provide continuity of care

and a more comprehensive service offering for the growing

aged population."

Tony Wai , CEO

"As a small community practice, we are delighted to be part of

Third Age Health, who we know hold the same values in

ensuring continuity of care for our enrolled patients and the

local community.”

Dr Dion Martley

New Clinical Advisory Committee to focus on
improving primary care for older people


Third Age Health has established its first Clinical Advisory Committee. The Committee brings

together thought leaders and experts from clinical and academic backgrounds in general

practice, nursing, older people’s health, psychiatry, gerontology, palliative care as well as

innovation, user experience and solution design. Members of the group were selected for

not only their expertise but their diversity of thought and willingness to come together with

a provider to find solutions to bridge the gap between the resources currently available and

the healthcare that’s needed for older people to improve their quality of life.

It’s really motivating to be working with a great group of people who bring to the table ideas which will

help us tackle the challenge of providing great healthcare for people, at a time when we are

experiencing the collision of increasing clinical complexity, workforce pressures and stagnant funding.


“Healthcare for people living in aged care is really fragmented. As a provider with national reach, we

have a good view on the variation in service provision and delivery across New Zealand. It’s important

to occasionally step back from the day-to-day delivery of healthcare and with the help of experts give

time and thought to how we can change the way we are doing things to get

better outcomes.


Dr Peter Zink

Chair, Clinical Advisory Committee





The Clinical Advisory Committee meeting online.

17

Professor Ngaire Kerse, Joyce Cook Chair in Ageing Well and GP

Professor Jenny Carryer, Massey University Professor and Head of NZ College of Nurses

Dr Jackie Broadbent, Geriatrician

Dr Dianne Leach, General Practitioner and practice owner

Dr Jane Casey, Psychogeriatric Specialist

Emily Preston, Senior Project Lead, Innovation Unit

Dr Carol McAllum, Director of Quality & Parnerships for Mercy Hospice, Palliative Medicine

Specialist and former specialist General Practitioner

Dr Peter Zink, General Practitioner and Third Age Health Medical Director

Lucy Wu, Third Age Health Clinical Change Advisor

Clinical Advisory Committee members


Passion for the health of older

people at heart of new career with

Third Age Health

Wendy Walsh, Nurse Practitioner

Wendy Walsh has been caring for the wellbeing of

older people since she was in her teens when she had

a part time job as a care assistant at Sun Haven, a care

home in her local area. She had no idea at the time

that she would one day be a highly skilled nurse

practitioner specialised in the health of older people

and be responsible for the medical care of residents in

seven aged residential care facilities across the

Taranaki region.

It’s so important to have a holistic approach when supporting the health

of older people and a nursing background is the perfect foundation. I love

the complexity of health care need in my role. As people age, they

generally have several aliments that affect wellbeing and I enjoy providing

medical care that improves their quality of life.


Dr Fei Wu, General Practitioner

Fei is a general practitioner based in Auckland who

splits his time between general practice and visiting

patients in age residential care. He believes it is a

privilege to be helping people improve their quality of

life as they age and enjoys visiting rest homes each

week to see his patients.

What’s not to love about people as they age, they have the best sense

of humour and tell great stories. The things I learn from older patients

when I visit them in aged care really complements the work I do in

general practice. The mix of both roles is perfect.




18

OUR BOARD
Bevan founded Third Age Health with the goal of revolutionising the way Kiwi

nursing homes access their medical services. He has a strong commitment

to delivering excellent service, and plays an active role in shaping Third Age

Health’s practice philosophy.

Bevan Walsh | Chair

OUR TEAM

John is CFO of MacroActive and Executive Director of Anjuli Mack Fit. He has

experience in strategy, finance and continuous improvement within financial

services, telco, media and technology businesses in New Zealand and a

Master of Business Administration from The University of Auckland.

John Fernandes | Independent Director

Norah is the current CEO of Heritage Life Care (NZ). A highly skilled and

experienced business executive, Norah's knowledge of the Aged Care sector

is extensive. Norah sits on the Board of some New Zealand's most

respected companies.

Norah Barlow, ONZM | Independent Director

Wayne Williams | Independent Director (appointed 10 Jun 2021)

Wayne is formerly a Partner of KPMG and has close to 30 years’ experience

within the health sector. He has worked in line management and consulting

roles within primary care, DHBs and the Ministry of Health, and he is

currently CEO of Alliance Health Plus Trust .

Diane Budres | Non- independent Director (Appointed 14 Sept 21)

Based in North America, Diane holds qualifications in education, public

health and human ecology. She is the founder and a director of The Budres

Foundation, a scholarship program based on learning by doing. Diane has

previously held directorships with First National Bank, Apple Bank, Nelson

Properties and DBS.

Clinical team

63%

Female

37%

Male

38

55

Total team

19

20













Consolidated Financial Statements


Third Age Health Services Limited

and subsidiaries


For the year ended 31 March 2022

Third Age Health Services Limited
Directors’ responsibility statement


21



The Directors of Third Age Health Services Limited (the “Company”) are pleased to present to shareholders the

Consolidated Financial Statements for Third Age Health Services Limited and its subsidiaries (“the Group”) for

the year ended 31 March 2022.


The Directors are responsible for presenting financial statements in accordance with New Zealand law and

generally accepted accounting practice, which present fairly in all material respects the financial position of

the Group as at 31 March 2022 and the results of its operations and cash flows for the year ended on that

date.


The Consolidated Financial Statements of the Group have been prepared using accounting policies which have

been consistently applied and supported by reasonable judgements and estimates and that all relevant

financial reporting standards have been followed.


The Directors believe that proper accounting records have been kept which enable with reasonable accuracy

the determination of the financial position of the Group and facilitate compliance of the Financial Statements

with the Companies Act 1993, NZX Listing Rules and Financial Markets Conduct Act 2013.


The Directors ensure that they have taken adequate steps to safeguard the assets of the Group and to prevent

and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to

provide a reasonable assurance as to the integrity and reliability of the Financial Statements.



The Consolidated Financial Statements presented are signed on behalf of the Board on 16 June 2022 by:








Bevan Walsh

Founder and Chair

John Fernandes

Audit Committee Chair






Third Age Health Services Limited
Consolidated statement of comprehensive income

For the year ended 31 March 2022



22




2022 2021


Notes $000 $000

Revenue 5 5,900 5,490

Cost of Sales


(2,205) (2,169)

Gross Profit


3,695 3,321


Other Income 6 31 52


Employees and contractors 8 (1,251) (1,086)

Professional and consulting fees 9 (486) (349)

Other expenses


(263) (228)


Depreciation & amortisation


(142) (114)


Finance Costs


(23) (43)


Profit before Income Tax


1,561 1,553

Income Tax Expense 11 (388) (512)

Profit after income tax


1,173 1,041


Other Comprehensive Income for the year, net of tax


- -


Total Comprehensive income for the year


1,173 1,041



Earnings per share (note 13)


Basic earnings per share (cents per share)


11.9 11.1

Diluted earnings per share (cents per share)


11.8 11.0





These Consolidated Financial Statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited
Consolidated statement of changes in equity

For the year ended 31 March 2022



23



Share Capital

Share Based

Payments

Reserve

Retained

earnings Total


Notes $000 $000 $000 $000

Balance at 1 April 2020


(1,300) 607 1,555 862


Profit for the year


- - 1,041 1,041

Total comprehensive income for the year


- - 1,041 1,041


Shares issued


1,531 - - 1,531

Dividend 12 - - (1,400) (1,400)

Transaction costs arising on issue of shares


(58) - - (58)

Balance at 31 March 2021


173 607 1,196 1,976


Profit for the year


- - 1,173 1,173

Total comprehensive income for the year


- - 1,173 1,173


Shares issued


342 - - 342

Dividend 12 - - (831) (831)

Tax credit on share based payments


- 21 - 21

Deferred tax credit on share based payments 11.2


9


9

Share based payments 24.3 - 6 - 6

Balance at 31 March 2022


515 643 1,538 2,696





These Consolidated Financial Statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited
Consolidated statement of financial position

For the year ended 31 March 2022



24



2022 2021


Notes $000 $000


Current assets


Cash and cash equivalents

14 1,124 1,829

Trade and other receivables

15 386 325

Loan receivable

16 313 59

Total current assets


1,823 2,213



Non-current assets


Property, plant and equipment


22 11

Right-of-use-assets

17 1,093 227

Intangible assets

18 1,902 782

Trade and other receivables

15 20 20

Loan receivable

16 - 297

Total non-current assets


3,037 1,337



Total assets


4,860 3,550



Current liabilities


Trade and other payables

20 668 592

Current tax liabilities


55 319

Employee share purchase plan deposits

24.1 75 345

Lease liabilities

17 111 53

Total current liabilities


909 1,309


Non-current liabilities


Trade and other payables 20 29 -

Lease liabilities 17 977 180

Deferred tax liability 11.2 249 85

Total non-current liabilities


1,255 265


Total liabilities


2,164 1,574


Net assets


2,696 1,976


Equity


Share capital

23 515 173

Share based payments reserve


643 607

Retained earnings


1,538 1,196

Total equity


2,696 1,976





These Consolidated Financial Statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited
Consolidated statement of cash flows

For the year ended 31 March 2022



25



2022 2021


Notes $000 $000


Cash flows from operating activities


Receipts from other operating activities


5,885 5,473

Payments to suppliers and employees


(4,147) (3,512)

Interest received


16 30

Interest paid


(23) (43)

Income taxes paid


(691) (398)

Net cash flows from operating activities 10 1,040 1,550



Cash flows from investing activities



Payments to purchase property, plant and equipment


(3) -

Acquisition of general practices 19.2 (971) -

Cash acquired through acquisition of general practices


4 -

Net cash flows used in investing activities


(970) -



Cash flows from financing activities



Deposits received under share purchase plan 24.1 72 308

Share purchase plan deposits applied to acquire shares 24.1 (342) -

Proceeds from issuing shares 23 342 1,266

Payments for costs of issuing shares


- (57)

Principal elements of loan repayments 16 47 -

Repayments of borrowings


- (673)

Payment of principal portion of lease liabilities 17 (63) (51)

Dividend paid 12 (831) (1,400)

Net cash flows from financing activities


(775)

(607)



Net increase in cash and cash equivalents


(705) 943



Cash and cash equivalents at the beginning of the period


1,829 886

Cash and cash equivalents at the end of the period 14

1,124 1,829






These Consolidated Financial Statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



26


1. Reporting entity


These Consolidated Financial Statements are for Third Age Health Services Limited and its subsidiaries (the

"Group"). The Parent is incorporated and domiciled in New Zealand and registered under the Companies Act

1993. The parent's shares are publicly traded on the New Zealand Stock Exchange (NZX) and are listed on the

main board of the NZX. The principal trading activity of the Group is the provision of medical services to the

aged care sector. Those companies included in the Group are disclosed in note 25.1.


The Consolidated Financial Statements of the Group are for the year ended 31 March 2022. The Financial

Statements were authorised for issue by the Directors as dated in the Directors' Responsibility Statement.


2. Statement of accounting policies


2.1. Basis of preparation


The Financial Statements have been prepared in accordance with New Zealand Generally Accepted Accounting

Practice ("NZ GAAP"). They comply with the New Zealand equivalents to International Financial Reporting

Standards ("NZ IFRS") and other applicable Financial Reporting Standards, as appropriate. These Financial

Statements comply with International Financial Reporting Standards ("IFRS") as published by the International

Accounting Standards Board. For the purposes of complying with NZ GAAP, the Group is a for-profit entity.

These Financial Statements have been prepared in accordance with the Financial Markets Conduct Act 2013.


2.2. Basis of measurement


The Financial Statements have been prepared on the historical cost basis except financial instruments that are

measured fair values at the end of each reporting period, as explained in the accounting policies below.


Historical cost is based on the fair value of the consideration given in exchange for goods and services.


2.3. Basis of consolidation


The Consolidated Financial Statements incorporate the Financial Statements of the Company and entities

(including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the

Company:

• has power over the investee

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there

are changes to one or more of the three elements of control listed above.

When necessary, adjustments are made to the Financial Statements of subsidiaries to bring their accounting

policies into line with the Group's accounting policies.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



27


All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between

members of the Group are eliminated in full on consolidation.


2.4. Functional and presentational currency


The individual Financial Statements of each Group entity are maintained in the currency of the primary

economic environment in which the entity operates (its functional currency). For the purpose of the

consolidated Financial Statements, the results and position of each Group entity are expressed in New Zealand

Dollars (NZD), rounded to thousands, which is the functional currency of the Company and the presentation

currency for the consolidated Financial Statements.


In preparing the Financial Statements of each individual group entity, transactions in currencies other than the

entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates

of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies

are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are

denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was

determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not

retranslated.


Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.


The Group has no foreign operations and the functional currency of all the Group subsidiaries is NZD.


2.5. Goods and services tax (GST)


Revenue, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST)

except:

• Where the amount of GST incurred is not recovered from the taxation authority, it is recognised as part of

the cost of acquisition of an asset or as part of an item of expense; or

• For receivables and payables which are recognised inclusive of GST (the net amount of GST recoverable

from or payable to the taxation authority is included as part of receivables or payables).


2.6. Financial instruments


Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual

provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly

attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets

and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the

financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly

attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are

recognised immediately in profit or loss.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



28


Financial instruments are classified into the following specified categories: ‘fair value through profit or loss'

(FVTPL), ‘fair value through other comprehensive income' (FVOCI) and 'at amortised cost'. The classification

depends on the nature and purpose of the financial instrument and is determined at the time of initial

recognition.


The Group’s financial assets consist of cash, short term deposits, trade receivables and related party

receivables.


Financial assets - Cash and short-term deposits

Cash and short-term deposits comprise cash at bank and on hand and short-term deposits with a maturity of

three months or less.


Financial assets - Trade and other receivables

Trade receivables are non-derivative financial assets and measured at amortised cost less impairment.

Impairment of trade receivables is recorded through a loss allowance account (bad debt provision). The

amount of the loss allowance is based on the simplified Expected Credit Loss (ECL) approach which involves

the Group estimating the lifetime ECL at each balance date. The lifetime ECL is calculated using a provision

matrix based on historical credit loss experience and adjusted for forward looking factors specific to the

debtors and the economic environment.


Financial assets - Related party receivables

Related party receivables are measured at amortised cost. The Group does not expect any credit loss on

related party receivables.


Financial assets - Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire,

or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to

another party. If the Group neither transfers nor retains substantially all the risks and rewards of ownership

and continues to control the transferred asset, the Group recognises its retained interest in the asset and an

associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards

of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also

recognises a collateralised borrowing for the proceeds received.


Financial assets - Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each

reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a

result of one or more events that occurred after the initial recognition of the financial asset, the estimated

future cash flows of the investment have been affected.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets

with the exception of trade receivables, where the carrying amount is reduced through the use of an

allowance account.



Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



29


Financial liabilities and equity instruments

Financial liabilities and equity instruments - Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after

deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received,

net of direct issue costs.


Financial liabilities and equity instruments - Financial liabilities

Financial liabilities at amortised cost (including borrowings, related party payables and trade and other

payables) are initially recognised at fair value and subsequently measured at amortised cost using the effective

interest method.


The effective interest method is a method of calculating the amortised cost of a financial liability and of

allocating interest expense over the relevant period. The effective interest rate is the rate that exactly

discounts estimated future cash payments (including all fees and points paid or received that form an integral

part of the effective interest rate, transaction costs and other premiums or discounts) through the expected

life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial

recognition.


Financial liabilities and equity instruments - Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged,

cancelled or they expire. The difference between the carrying amount of the financial liability derecognised

and the consideration paid and payable is recognised in profit or loss.


2.7. Business combinations


Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a

business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair

values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the

acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-

related costs are recognised in profit or loss as incurred.


At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their fair

value, except deferred tax assets or liabilities, and assets or liabilities related to employee benefit

arrangements which are recognised and measured in accordance with NZ IAS 12 Income taxes and NZ IAS 19

Employee benefits respectively.


Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-

controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the

acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the

liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets

acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-

controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree

(if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



30


2.8. Comparatives


Where appropriate, comparative information has been reclassified to conform to the current period’s

presentation.


2.9. Changes in accounting policies


All significant accounting policies have been applied on a basis consistent with those used in the audited

Consolidated Financial Statements of the Group for the year ended 31 March 2021.


2.10. Standards issued but not yet effective


There are no new or amended accounting standards mandatory for the year ended 31 March 2022 that were

considered to have a material impact to the Group. The International Accounting Standards Board has issued a

number of standards, amendments and interpretations which are not yet effective, of which an impact on the

Group’s Consolidated Financial Statements is not yet determined.


3. Impact of Covid -19


COVID-19 (also known as Coronavirus) was declared a pandemic by the World Health Organisation on 11

March 2020. The Company continues to monitor the impact of COVID 19 both locally and globally as well as

the recommendations from the New Zealand Government.


As an essential service all business units of the Group continued to operate through the periods of COVID-19

lockdown. Continuity of activities has been maintained through adoption of recommended safety measures

and utilising core infrastructure such as virtual meetings and collaboration tools already in place prior to the

pandemic.


While uncertainty exists as to the impact COVID-19 will have on the economy and the demand for the Group’s

services in the future based on the services provided and its current financial position the Board have assessed

there is unlikely to be any material impacts on the Group resulting from the COVID-19 pandemic.


The Group has not made any claims under the New Zealand government COVID-19 financial support

programmes during the period ended 31 March 2022 (2021: Nil).


4. Use of accounting estimates and judgements


The preparation of these Financial Statements requires management to make estimates and assumptions.

These affect the amounts of reported revenue and expense and the measurement of assets and liabilities.

Actual results could differ from these estimates. The principal areas of judgement and estimation in these

Financial Statements are:

• Loan receivable from Third Age Digital Health (note 16)

• Determination of lease term (note 17)

• Acquisition accounting (note 19.2)

• Accounting for employee share purchase plans (note 24)

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



31


5. Revenue recognition


5.1. Revenue from contracts with customers


Revenue has been categorised as consultation revenue, capitation revenue and other revenue.


Consultation revenue

The Group earns revenue from the provision of medical consultation services. Each consultation performed is

a separate performance obligation satisfied at a point in time. The price for each consultation is a fixed amount

based on an agreed rate card with the customer. Revenue is recognised once the consultation service has been

provided. Revenue from contracts with customers is measured at the fair value of the consideration received

or receivable and may be reduced for rebates and other similar allowances.


Capitation revenue

The Group provides various medical services on a ‘stand ready’ basis on behalf of Primary Health Organisations

(PHOs). This capitation revenue is recognised monthly based on the number of enrolled patients and the

agreed rate for the particular patient. The agreed rate will be affected by the characteristics of the patient, for

example, their age or gender. Revenue is recognised on an over time basis measured on a time lapsed basis.


Other revenue

Other revenue is made up of claims revenues for vaccinations, ACC and general medical services (GMS),

recognised on a point in time basis, once the services have been given to the patient.


Revenue from contracts with customers


2022 2021


$000 $000

Capitation revenue



Aged medical care services 1,519 1,524

General practice medical services 905 564


Consultation revenue


Aged medical care services 3,105 3,120

General practice medical services 274 172


Other revenue


Aged medical care services 88 110

General practice medical services 9 -


Total revenue from contracts with customers

5,900 5,490


Geographical information

Over the two years covered by the Consolidated Financial Statements, the Group operated in New Zealand

only.


Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



32


Information about major customers

Included in total revenue are revenues that arose from services provided to the Group’s largest customers.


The Group derived revenue from the following significant customers:


2022 2021


$000 $000

Customer 1

1,287 1,045

Customer 2

670 763


No other single customers contributed 10% or more to the Group’s revenue for both 2022 and 2021.


6. Other income


2022 2021


$000 $000

Interest Income 20 30

Other Income 11 22

Total Other Income 31 52


6.1. Interest income


Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to

the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by

reference to the principal outstanding and at the effective interest rate applicable, which is the rate that

exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's

net carrying amount on initial recognition.


7. Segment information


7.1. Products and services from which reportable segments derive their revenue


The Group's reportable segments are as follows:

• Aged medical residential care services, being the provision of medical care services to the aged care

sector.

• General practice medical services


7.2. Segment revenues and results


The following is an analysis of the Group’s revenue and results from continuing operations by reportable

segment:

Segment revenue

2022 2021


$000 $000

Aged medical care services

4,712 4,754

General practice medical services

1,188 736

Total for operations

5,900 5,490

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



33


Segment profit before tax

2022 2021


$000 $000

Aged medical care services

1,340 1,369

General practice medical services

221 184

Total for operations

1,561 1,553


Segment profit includes the following items:


For the year ended 31 March 2022

Aged care General practice

Segment profit includes the following items:

medical services medical services


$000 $000

EBITDA

1,321 385

Depreciation & amortisation

1 141

Finance costs

- 23

Interest income

20 -

Income tax expense

326 62


For the year ended 31 March 2021

Aged care General practice

Segment profit includes the following items:

medical services medical services


$000 $000

EBITDA

1,374 306

Depreciation & amortisation

2 112

Finance costs

33 10

Interest income

30 -

Income tax expense

460 52


EBITDA represents profit before tax excluding amounts for (1) interest income; (2) finance expenses; and (3)

depreciation and amortisation expenses.


7.3. Segment assets and liabilities


Segment assets

2022 2021


$000 $000

Aged medical care services New Zealand 1,513 2,857

General practice medical services 4,014 753

Total segment assets

5,527 3,610




Intercompany elimination (667) (60)

Total segment assets 4,860 3,550







Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



34


Segment liabilities

2022 2021


$000 $000

Aged medical care services New Zealand

922 1,057

General practice medical services

1,909 577

Total segment liabilities

2,831 1,634




Intercompany elimination (667) (60)

Total segment liabilities 2,164 1,574


8. Costs of employees, contractors, and directors includes:




2022 2021


Note

$000 $000

Salaries and wages


916 545

Short term incentives


20 0

Defined contribution (KiwiSaver)


20 11

Share based payments expense

24.3

13 0

Employee benefit expense


969 556




Fees to full time contractors


305 307

Former CEO Incentives


(23) 223



1,251 1,086


Retentions bonuses for the former CEO accrued in the year ended 31 March 2021 were reversed following his

resignation at 30 September 2021.


9. Professional and consulting fees



2022 2021


$000 $000

Fees paid to auditor

56 47

Accounting and taxation services

121 63

Legal expenses

82 10

Directors’ fees

126 60

Listing and share registry costs

39 167

Company secretarial

7 -

CEO Recruitment

44 -

Other consultancy costs

11 2


486 349


Fees paid to auditor of $56,650 (2021: $46,760) relates to fees for the annual audit of the Consolidated

Financial Statements and does not include any amounts for other assurance or non-assurance services.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



35


Accounting and taxation services includes accounting fees of $99,383 (2021: $89,504), of which $75,402 were

incurred during the first 5 months of the year. Accounting fees have reduced following the appointment of the

Acting CFO in June 2021.


Legal expenses include $30,342 in respect of acquisition activity during the year ended 31 March 2022 (2021:

Nil).


10. Reconciliation of profit for the year to net cash from operating activities


2022 2021


$000 $000

Profit before income tax 1,561 1,553


Adjustments to reconcile profit before tax to net cash

flows:


Depreciation and other amortisation 142 114

Share based payments expense 13 -

Expenses settled through issuance of shares - 141

Interest charged on loan (4) -


Working capital adjustments:


Trade and other receivables (61) (39)

Trade and other payables 83 180

Impact of working capital acquired (3) -


1,731 1,949

Income tax paid (691) (399)


Net cash from operating activities 1,040 1,550


11. Taxation


11.1. Income tax recognised in profit or loss relating to continuing operations


Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised

in other comprehensive income or directly in equity, in which case, the current and deferred tax are also

recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax

arises from the initial accounting for a business combination, the tax effect is included in the accounting for

the business combination.


Tax expense comprises:



2022 2021


$000 $000

Current income tax

438 537

Deferred income tax

(50) (26)

Prior period adjustment

- 1

Total income tax expense recognised in the current year 388 512

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



36



Income tax expense for the year can be reconciled to the accounting profit as follows:



2022 2021


$000 $000

Profit before tax from continuing operations

1,561 1,553



Income tax expense/(benefit) calculated at 28%


437


435



Effect of non-deductible expenses


18


76

Tax credit on share based payments


(67)


-

Prior period adjustments


-


1

Income tax expense recognised in profit or loss relating to

continuing operations

388 512


11.2. Deferred tax


Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in

the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred

tax assets are generally recognised for all deductible temporary differences to the extent that it is probable

that taxable profits will be available against which those deductible temporary differences can be utilised. Such

deferred tax assets are not recognised if the temporary difference arises from the initial recognition (other

than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit

nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference

arises from the initial recognition of goodwill.


Deferred tax liabilities are recognised for taxable temporary differences associated with investments in

subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the

reversal of the temporary difference and it is probable that the temporary difference will not reverse in the

foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such

investments and interests are only recognised to the extent that it is probable there will be sufficient taxable

profits against which to utilise the benefits of the temporary differences and they are expected to reverse in

the foreseeable future.


The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the

extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the

asset to be recovered.


Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in

which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or

substantively enacted by the end of the reporting period.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



37


The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from

the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying

amount of its assets and liabilities.


Deferred tax liability


Deferred tax liability is made up of the following deferred tax assets and liabilities.



2022 2021


$000 $000

Deferred tax asset

279 83

Deferred tax liability

(528) (168)


(249) (85)

Deferred tax assets relate to:


Provisions and accruals

32 18

Lease liabilities

223 65

Share based payments

24 -


279 83

Deferred tax liabilities relate to:


Right-of-use-assets

(218) (63)

Intangible assets

(310) (105)


(528) (168)



The movement on deferred tax is summarised as follows.



Provisions

and

accruals

Right-of-

use-assets

Leases Share

based

payments

Intangible

assets

Totals


Notes $000 $000 $000 $000 $000 $000

Opening net deferred tax

asset/(liability)


18 (63) 65 - (105) (85)

Additions through

acquisitions 19.2

- - - - (223) (223)

Recognised in the profit

and loss 11.1

(14) 154 (157) (15) (18) (50)

Recognised in the share

based payments reserve


- - - (9) - (9)

Closing net deferred tax

asset/(liability)


32 (217) 222 24 (310) (249)



11.3. Imputation credits


The Group had New Zealand imputation credits of $710,493 (2021: $340,423) available for use in subsequent

periods.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



38


12. Dividends


Cents per share $000

Dividends paid during the year ended 31 March 2022:


Interim dividend 4.52 450

Final dividend for the year ended 31 March 2021 3.91 381



831




Cents per share $000

Dividends paid during the year ended 31 March 2021:


Interim dividend 4.12 400

Special dividend 10.26 1,000


1,400

13. Earnings per share


Basic earnings per share is calculated by dividing the profit attributable to the shareholders of the Group by

the weighted average number of ordinary shares outstanding during the financial year, excluding treasury

shares.


Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take

into account the after-income tax effect of interest and other financing costs associated with dilutive potential

ordinary shares, and the weighted average number of ordinary shares that would have been outstanding

assuming the conversion of all dilutive potential ordinary shares.


Reconciliation of earnings used in calculating earnings per share


2022 2021


$000 $000

Net profit attributable to the ordinary shareholders of the

Group

1,173 1,041

Earnings used in the calculation of basic earnings per share

from continuing operations

1,173 1,041


Weighted average number of shares used as the denominator


2022 2021


Shares Shares


000's 000's

Weighted average number of ordinary shares used as the

denominator in calculating basic earnings per share

9,832 9,388


Adjustments for calculation of diluted earnings per share:



Employee share options 74 39


Weighted average number of ordinary shares and potential

ordinary shares used as the denominator in calculating

diluted earnings per share

9,906 9,427



Excludes shares held by the Third Age Employee Purchase Plan Share Trust (note 23).

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



39


14. Cash and cash equivalents


2022 2021


$000 $000

Cash on hand and at bank 1,124 1,829


1,124 1,829


15. Trade and other receivables


Current


2022 2021


$000 $000

Trade receivables 343 315

Prepayments and other receivables 43 10


386 325


As at 31 March 2022 94% of the Group's trade receivables are current (2021: 99%).


Non-current


2022 2021


$000 $000

Deposit with NZX

20 20


20 20


16. Loan receivable


2022 2021


$000 $000

Current


Third Age Digital Health Limited Loan Note 313 59

Non-current:



Third Age Digital Health Limited Loan Note

-

297


313 356


Interest has been charged at rates between 5.73% - 6.54% for the year ended 31 March 2022 (2021:6.35%)

and the Group has recognised interest income of $19,332 (2021: $21,010).


In May 2021 monthly principal repayments commenced in line with the loan agreement with a total $62,414

paid during the year. Repayments were ceased by Third Age Digital Health Limited (TADH) in March 2022 in a

breach of the loan agreement.


The loan was set up to be repaid through monthly instalments by 31 March 2026 with early repayment

permitted. Following failure of TADH to maintain the monthly payments the Company is now seeking full

settlement, so the loan is considered to be current.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



40


While the loan to TADH is unsecured the Board of TADH provided the Company with a warranty that it had

received legally binding assurances of financial support from its major shareholders such that in the borrower’s

opinion (acting reasonably and in good faith) TADH would make all repayments.


Michael Haskell is the Director of TADH, and its major shareholders are Michael Haskell & Associates Limited

and Bevan Walsh, both major shareholders of the Company. As such the loan is considered a related party loan

(note 25.2).


The Independent Directors of the Company are seeking to enforce the warranties provided by TADH including

the potential appointment of a liquidator to TADH, and therefore remain of the view that the loan will be

recovered in full.


17. Right of use assets and lease liabilities


Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset

is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The

finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of

interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the

shorter of the asset's useful life and the lease term on a straight-line basis.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include

the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• variable lease payment that are based on an index or a rate;

• amounts expected to be payable by the lessee under residual value guarantees;

• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined,

or the Group's incremental borrowing rate.


Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability.

• any lease payments made at or before the commencement date, less any lease incentives received.

• any initial direct costs, and

• restoration costs.


17.1. Extension and termination options


Extension options are included in the Group's lease agreement. Extension options held are exercisable by both

the Group and by the respective lessor.


17.2. Determination of the lease term


In determining the lease term, management considers all facts and circumstances that create an economic

incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



41


after termination options) are only included in the lease term if the lease is reasonably certain to be extended

(or not terminated).


The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects

this assessment and that is within the control of the lessee.


17.3. Key judgements


Hawkes Bay Wellness Centre Limited, a subsidiary of the Company, lease the premises at 536 Kennedy Road,

Napier, New Zealand. The lease is for a term of 5 years with one right of renewal of 5 years and a final expiry

date of 31 March 2030. Initially, the 5-year right of renewal was excluded from the lease term on the basis it

was not reasonably certain to be exercised. As at reporting date the Group are now reasonably certain to

exercise the right of renewal given substantial renovations have been carried out on the premises in the last 6

months. As a result, the Group have reassessed the lease liability as at the reporting date. The reassessment

has resulted in a modification to the lease and an increase to the right-of-use asset and lease liability of

$334,087.


As a result of the acquisition of Belmont Medical Centre Limited practice on 11 October 2021 (note 19), the

Group entered into a lease of the premises at 3 Williamson Avenue, Belmont, Auckland, 0622. The lease had

an initial term of five years with a single right of renewal of a further 5 years. Given the practice has long been

established at that location it is regarded as reasonably certain that the lease will be renewed.


With the acquisition of the business of Ponsonby Medical Centre (note 19.2) on 31 March 2022 the Group

entered into a 6-year lease of the premises at 1 Vermont Street, Ponsonby, Auckland 1011. There are no rights

of renewal.


Amounts recognised in the balance sheet


Right-of-use assets

2022 2021


$000 $000

Opening balance

227

-

Additions

606 284

Lease reassessment

334 -

Depreciation

(74) (57)

Closing balance

1,093 227


Lease liabilities

2022 2021


$000 $000

Opening balance

233

-

Additions

583 284

Lease reassessment

334 -

Interest

23 10

Repayments

(85) (61)

Closing balance

1,088 233

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



42


Current

111 53

Non-current

977 180


1,088 233



Amounts recognised in the statement of profit or loss



2022 2021


$000

$000

Depreciation of right-of-use assets property

74 57

Interest expense (included in finance cost)

23 10


The total cash outflow for leases in the 12-month period ended March 2022 was $94,342 (2021: $77,646).


18. Intangible assets


2022 2021


Notes

$000

$000

Goodwill

18.1

796 408

Intangibles

18.3

1,106 374


1,902 782


18.1. Goodwill


Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the

business less accumulated impairment losses, if any.



2022 2021

Goodwill

Note

$000 $000

Opening balance


408 408

Additions

19.2

388 0

Closing balance


796 408




Goodwill impairment


Opening balance


- -

Accumulated Impairment losses


- -

Closing balance


- -




Net carry amount of goodwill


796 408


On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the

determination of the profit or loss on disposal.


18.2. Impairment of goodwill

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or

groups of cash-generating units) that is expected to benefit from the synergies of the combination.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



43


A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more

frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-

generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying

amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the

carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or

loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.


Goodwill has been allocated for impairment testing purposes to Hawkes Bay Wellness Centre (HBWC) Limited

and the General Practice businesses acquired during the current financial year, Belmont Medical Centre

Limited (BMC) and Ponsonby Medical (Third Age Health) Limited (PMC). Each are considered a Cash

Generating Unit (CGU).


The allocation of goodwill for each CGU is as follows.



2022 2021


$000 $000

Hawkes Bay Wellness Centre Limited

408 408

Belmont Medical Centre Limited

13 -

Ponsonby Medical (Third Age Health) Limited

375 -


796 408


For the 2022 reporting period, the recoverable amount of the cash-generating units was determined based on

value-in-use calculations which require the use of assumptions. The calculation uses cash flow projections

based on a financial forecast covering a five-year period.


A forecast was generated to model the expected growth of the three CGUs. The following table sets out key

assumptions within the forecast:


Cash generating unit HBWC BMC PMC


Discount Rate

15% 15% 15%

Terminal growth rate 2% 2% 2%

EBITDA Growth 15% 10% 10%


In 2021 an assessment was undertaken for HBWC only using the same key assumptions.


The value-in-use is estimated to exceed the carrying amount of HBWC by $4.1 million of BMC by $0.3 million

and PMC by $0.9 million. As such, there has been no impairment of the asset during the year.


The Directors do not believe that a reasonably possible change in a key assumption (described above) would

cause the carrying value of the CGUs to exceed their recoverable amount.


18.3. Other intangible assets


Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated

amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



44


estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each

reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.


As a result of the acquisition of general practices, separately identified Intangible assets have been recognised

from the patient enrolled database of the general practices and an ongoing funding agreement with the

Primary Health Organisations (PHOs).




Patient database PHO agreement Total


Note

$000 $000 $000

Cost:


Balance at 31 March 2021


208 326 534

Additions

19.2

336 460 796

Balance at 31 March 2022


544 786 1,330




Patient database PHO agreement Total



$000 $000 $000

Accumulated depreciation:



Balance at 31 March 2021


(62) (98) (160)

Amortisation expense


(24) (39) (63)

Balance at 31 March 2022


(86) (137) (223)




Carrying amount at 31 March 2022


458 649 1,107

Carrying amount at 31 March 2021


146 228 374


The patient database and PHO agreement are amortised on a straight-line basis over ten years.


19. Business Combinations


19.1. Group composition


The parent entity is Third Age Health Services Limited, a company incorporated in New Zealand.


The Group had the following subsidiaries as at 31 March 2022:




Ownership Ownership

Subsidiary name Country of incorporation

2022 2021

Hawkes Bay Wellness Centre Limited (HBWC) New Zealand

100% 100%

Belmont Medical Centre Limited New Zealand

100% -

Ponsonby Medical (Third Age Health) Limited New Zealand

100% -

Third Age Employee Share Purchase Plan Trust New Zealand

100% 100%


19.2. Acquisitions


During the financial year ended 31 March 2022 the Company completed two acquisitions of general practices,

to support the Group’s future growth strategy, which revolves around providing a consistent primary health

service as people move from community living into the aged care setting. The acquisition of local general

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



45


practices plays an essential part in this, to expand Third Age Health’s offer to people in the local community

and those living independently in retirement villages.


Belmont Medical Centre

The Group acquired Belmont Medical Centre (BMC) on 11 October 2021 for an acquisition price of $0.17

million by acquiring the share capital of the practice. The results of the practice since acquisition are included

in these Consolidated Financial Statements for the year ended 31 March 2022, contributing $276,808 to Group

revenues and $6,889 to Group EBITDA.


If the acquisition of BMC had occurred at the beginning of the reporting period, it is estimated that revenues

of $0.6 million would have been included in the Consolidated Statement of Comprehensive Income. NZ IFRS

accounting matters identified post-acquisition make it impractical to ascertain the profit/loss that would have

resulted if the acquisition had occurred at the beginning of the reporting period.


Ponsonby Medical (Third Age Health) Limited

The Group acquired the assets and business of Ponsonby Medical Centre (PMC) on 31 March 2022, through a

new wholly owned Group entity. As the acquisition was completed on 31 March 2022 there is no material

impact on the results for the current year. Given the short timeframe since acquisition date and the

complexity involved, the accounting for the business combination under NZ IFRS 3 Business Combinations has

not been finalised as at the date of this report.


The Company will report the impact of the acquisition on the Group in the Annual Consolidated Financial

Statements for the year ending 31 March 2023.


If the acquisition of PMC had occurred at the beginning of the reporting period, it is estimated that revenues of

$1.0 million would have been included in the Consolidated Statement of Comprehensive Income. NZ IFRS

accounting matters identified post-acquisition make it impractical to ascertain the profit/loss that would have

resulted if the acquisition had occurred at the beginning of the reporting period.


Details of the fair value of identifiable assets and liabilities acquired purchase consideration and goodwill are

as follows:




Belmont

Medical Centre

Ponsonby

Medical Centre

Total


$000 $000 $000

Consideration transferred


Cash 171 800 971

Total consideration

transferred 171 800 971



$000 $000 $000

Current assets


Cash and receivables 40 - 40

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



46



Belmont

Medical Centre

Ponsonby

Medical Centre

Total


$000 $000 $000

Non-current assets


Property, plant and equipment 7 5 12

Intangible Assets 212 584 796

Total assets acquired 259 589 848


Non-current liability


Accruals and employee

benefits


(42) -


(42)


Non-current liability


Deferred tax liability


(59)


(164)


(223)

Total net assets acquired 158 425 583


Goodwill 13 375 388


An assessment of goodwill is tested for impairment annually, or more frequently when there is an indication

that the unit may be impaired, (note 18.2). Legal expenses reported in note 9 include $30,342 in respect of

acquisition activity during the year ended 31 March 2022 (2021: Nil).


20. Trade and other payables

Current



2022 2021



$000 $000

Trade payables


340 333

GST payable


109 103

Withholding tax payable


10 -

Accruals and other payables


209 156



668 592


Non-current


2022 2021


Note

$000 $000

Liability for cash settled options

24.2 7 -

Accruals and other payables


22 -



29 -


Current trade payables are typically paid within 30 days of the invoice date or on the 20th of the month

following the invoice date.




Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



47


21. Financial instruments



2022 2021

Financial assets Notes

$000

$000

Financial assets at amortised cost


Cash and cash equivalents 14 1,124 1,829

Trade receivables 15 343 314

Loan receivable 16 313 356


Financial liabilities


Financial liabilities at amortised cost


Trade payables and accruals 20 549 489

Employee share purchase loans 24.1 75 345


21.1. Fair value measurements


As at 31 March 2022 and 2021, the Group has no financial assets nor liabilities measured at fair value.


22. Financial risks


This note presents information about the Group's exposure to each financial risk and how those risks are

managed.


22.1. Market risk


The Group has no material exposure to foreign currency risk nor interest rate risk as the Group has no

borrowings at this time.


22.2. Credit risk


Credit risk is the risk of the failure of a debtor or counterparty to honour its contractual obligation resulting in

financial loss to the Group.


Financial assets, which potentially subject the Group to credit risk, consist principally of cash and cash

equivalents, trade and other receivables, and loan receivables. The maximum credit risk at 31 March 2022 is

the carrying value of these assets on the balance sheet. The directors consider the Group's exposure to credit

risk from cash and cash equivalents and trade and other receivables to be minimal given that

• The Group's cash and cash equivalents are held with Westpac, BNZ, ASB and Kiwibank. Westpac, BNZ and

ASB are all rated AA- based on rating agency Standard & Poors. Standard & Poors no longer rate Kiwibank,

but rating from Moody’s Investor Services and Fitch Ratings are A1 and AA respectively

• Following a review of banking services, the Group will be transitioning its major banking arrangements to

the ANZ during the year ending 31 March 2023. Standard & Poors rating for ANZ is AA-.

• The Group's customers are typically low credit risk and, historically, there has been minimal bad debt

expense recorded.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



48


There is a higher credit risk associated with the Loan Receivable due from Third Age Digital Health Limited

(note 16).


22.3. Liquidity risk


The Group manages liquidity to ensure that it has sufficient liquidity to meet its liabilities when due.

Ultimate responsibility for liquidity risk management rests with the board of directors. The Group manages

liquidity risk through continuous cash management and monitoring of forecast and actual cash flows.


22.4. Maturity profile


The following table details the Group’s exposure to liquidity risk.


Contractual maturity dates


On demand

Less than one

year

Greater than

one year Total

Financial liabilities as at 31

March 2022: Notes

$000 $000 $000 $000

Trade and other payables 20


-


668


-


668

Employee share purchase

plan deposits 24.1


75


-


-


75

Lease liabilities 17


-


111


977


1,088


75 779 977 1,831


On demand

Less than one

year

Greater than

one year Total

Financial liabilities as at 31

March 2021: Notes

$000 $000 $000 $000

Trade and other payables 20


-


592


-


592

Employee share purchase

plan deposits 24.1


345


-


-


345

Lease liabilities 17


-


53


180


233


345 645 180 1,170


Employee share purchase plan deposits relate to deposits received on partially repaid share plans (note 24.1).

The Group classifies these amounts as on demand as in the event that an employee leaves or is made

redundant or a contractor ceases to provide services then any repayments that have been made are returned.


22.5. Capital risk management


The Group manages its capital (comprising of cash and cash equivalents) to ensure that entities in the Group

will be able to continue as going concerns while maximising the return to stakeholders through the

optimisation of the debt and equity balance. The Group is funded through existing cash reserves at this time.

Management's current expectation is additional investments will be funded through existing cash reserves or

external borrowing. For the year ended 31 March 2022, the Group was not subject to any externally imposed

capital requirements. Subsequent to year end the Company entered into a $3 million debt facility with ANZ

Bank Limited (note 27.3)

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



49


23. Share Capital


Ordinary shares

All ordinary shares rank equally with one vote attached to each fully paid share. Total issued share capital is

10,000,000 ordinary shares. As at 31 March 2022, of the total number of issued shares, 50,000 (2021: 250,000)

were held in trust for specific participants under the Employee Share Purchase Plan (ESPP, note 24.1).

Accordingly, the shares are not tradeable on the NZX until they vest.


Third Age Employee Share Purchase Plan Trust

The Company has established a Share Trust, the Third Age Employee Share Purchase Plan Trust. The Share

Trust holds shares in the Company on trust for participants in the Employee Share Purchase Plan (ESPP). The

Share Trust is controlled by the Company and is therefore consolidated in these Consolidated Financial

Statements.


Treasury shares and shares held in Trust

At 1 April 2020, the Company held 152,600 ordinary shares as Treasury Shares which were all re-issued during

the year ended 31 March 2021 as part of a share placements that year, prior to the Company joining the NZX.

Shares held by the Share Trust are treated as treasury stock and not included within the Group number of

shares on issue.


At 1 April 2020 there were 838,804 shares held, 508,804 in a pool and 330,000 held for specific participants of

the Third Age Employee Share Purchase Plan Trust (“Trust”). During the year ended 31 March 2021, all

508,804 shares held in the pool were issued to shareholders and 80,000 shares were issued to a Trust

participant prior to the Company joining the NZX. Further details of the shares held and the movements in

respect of Trust participants are provided in note 24.1.

24. Share Based Payments


24.1. Employee share purchase plan (ESPP)


The Company operates an employee share purchase plan ('ESPP') for certain employees and contractors

('participants'). Under the SPP, participants are provided with a “loan” to purchase an agreed number of

shares in the Company at a share price established by the Board. The share price is estimated by the Board

based on their assessment of the fair value of the Company at the time. The loans are typically for a 36- or 60-

month term, interest free with monthly repayments. They are secured against the shares. The shares are held

on trust by the Third Age Employee Share Purchase Plan Trust until such time as the loans are fully repaid.

Participants are permitted to repay the loans at any time. In the event that an employee leaves or is made

redundant or a contractor ceases to provide services then any repayments that have been made are returned

and the allotted shares are returned to the pool.


Under NZ IFRS 2 Share-based payment, this type of arrangement is accounted for as an 'in substance' share

option - an equity settled share-based payment. The loans are not recognised as assets of the Company as

they are only secured against the underlying shares and are considered limited in recourse. Instead, the fair

value of the arrangement is calculated at grant date and is recognised over the vesting period of the

arrangement as a share-based payment expense in profit or loss and accumulated in the share-based payment

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



50


reserve. The share options vest immediately as there are no service or performance conditions and

participants are able to repay their loans in full at any time and have their shares issued. Partial repayments

made under the loans are recorded as a liability until such time as the loan is repaid in full at which time the

shares are issued, and amounts are recognised as share capital in equity.



2022 2021


$000 $000

Deposits received on partially repaid share plans

75 345


75 345


Movements in shares held on behalf of participants during the year



Weighted average share


Number of shares purchase price


000's

$

Balance at 1 April 2021 250

1.67

Fully paid and issued during the year (200)

1.71

Balance at 31 March 2022

50

1.51



Balance at 1 April 2020 330 1.65

Fully paid and issued during the year (80) 1.57

Balance at 31 March 2021

250 1.67


In November 2021 200,000 shares priced at $1.71 vested. As a result the deposits received in respect of those

shares was transferred to share capital and the 200,000 shares were transferred from the Third Age Employee

Share Purchase Plan Trust in to the name of the participant.


The share purchase price for shares held on behalf of participants at 31 March 2022 was $1.51 (2021: $1.51 -

$1.71). There were no share rights granted under the ESSP during the year ended 31 March 2022 (2021: Nil).

As at 31 March 2022 50,000 options remain unvested (2021: 250,000 options).


24.2. Employee Share Option Plan (ESOP)


On the 4 September 2021 (grant date) the Board approved the offer of 300,000 options under a Company

Employee Share Option Plan (ESOP) to the CEO, Tony Wai on the following terms:


• The options were issued at an exercise price of $2.36, based on the Volume Weighted Average Price

(VWAP) for the Company’s shares on the NZX for the 20 Business Days prior to 27 September 2021 (the

date the CEO commenced employment).

• The Options will vest in three tranches, 60,000, 90,000 and 150,000.

• Vesting is subject to continued employment and agreed performance targets achieved by 27 September

2024, 27 September 2025, and 27 September 2026.

• the expiry date of the options will be one year after the date of vesting.


Under the terms of the ESOP there is an option to settle a portion of option in cash, primarily to offset any

income tax liability arising at the time the employee exercises their options. Given current income tax rates it

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



51


has been concluded a 39% tax rate will apply. Based on that assumption it is assumed that 39% of each

tranche of options should be treated as cash settled, the remainder will be equity settled.


Equity-settled options

The total number of equity-settled options is 183,000, which were valued at grant date using the Monte Carlo

simulation valuation model. The fair value of the equity settled options is $43,920 which will be expensed over

the vesting periods for each tranche. The weighted average fair value of the equity settled options is $0.24.


Key estimates and judgements at grant date

The value was calculated using the following significant inputs into the model.

• A share price of $2.24 at the grant date.

• An exercise price simulated to determine a VWAP for the 20 days to 27 September 2021.

• A share volatility of 32.5%, based on daily share price movements since the Company listed on 15

February 2021.

• A dividend yield based on actual dividends issued and assuming a 15% growth rate.

• A risk-free interest rate of 1.45%.


The total amount of fair value recognised in the Consolidated Statement of Comprehensive Income up to 31

March 2022 was $6,275 with the corresponding entry in the Share Based Payments Reserve.


The weighted average contractual life of the equity-settled options on 31 March 2022 is 67 months.


Cash-settled options

The total number of cash-settled options is 117,000 which were valued at grant date using the same inputs as

with the equity settled options. The value at grant date was $28,080, with a weighted average fair value of

$0.24.


Under NZ IFRS for cash-settled options, the Company shall remeasure the fair value of the liability to settle the

options for cash at the end of each full year and half year reporting period and at the date of settlement, with

any changes in fair value recognised in profit or loss for the period.


The fair value of the cash-settled options was remeasured under the Monte Carlo Method as of 31 March

2022. The value at that date was $46,332, with the weighted average fair value of the equity settled options

being $0.396.


Key estimates and judgements as of 31 March 2022

The remeasured value was calculated using the following significant inputs into the model.

• The valuation date of 31 March 2022.

• A share price at valuation date of $2.84.

• An exercise price of $2.36 being the exercise price of 27 September 2021.

• A share volatility of 29.7%, based on daily share price movements since the Company listed on 15

February 2021.

• A dividend yield based on actual dividends issued and assuming a 15% growth rate.

• A risk-free interest rate of 3.16%.

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



52


The total amount of fair value recognised in the Consolidated Statement of Comprehensive Income up to 31

March 2022 was $6,501 with the corresponding entry for the liability under Trade and other payables (non-

current) (note 20).


The weighted average contractual life of the cash-settled options on 31 March 2022 is 67 months.


24.3. Share based payments expense



2022 2021


$000 $000

Employee share option plan:


Share based payments expense equity-settled 6 -

Share based payments expense cash-settled 7 -


Employee share purchase plan - -


13 -


25. Related party transactions


25.1. Group composition


The Group is comprised of the following entities:


Subsidiary name Country of incorporation

2022 2021

Hawkes Bay Wellness Centre Limited (HBWC) New Zealand 100% 100%

Belmont Medical Centre Limited New Zealand 100% -

Ponsonby Medical (Third Age Health) Limited New Zealand 100% -

Third Age Employee Share Purchase Plan Trust New Zealand 100% 100%


Investments


The Group's ownership interest in all subsidiaries and investments is equal to its proportion of voting rights

held. The Group has no restrictions relating to its ability to access or use the assets and settle the liabilities of

the Group. Devonport Family Medicine (Third Age Health) Limited was incorporated on 12 April 2022 as a

wholly owned subsidiary of Third Age Health Services Limited (note 27.2).


25.2. Related party transactions


Name of related party Nature of relationship Transaction 2022 2021

$000 $000

Michael Haskell, CEO (resigned 30 September 2021) Shareholder Contractor fee 132 261


Bonus accruals (23) 123


Shares - 100

Bevan Walsh Director & Shareholder Director fees 12 12

John Fernandes Director & Shareholder Director fees 40 18

Norah Barlow Director & Shareholder Director fees 38 18

Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



53


Name of related party Nature of relationship Transaction 2022 2021

$000 $000

Wayne Williams (appointed 10 June 2021) Director Director fees 29 -

Diane Budres (appointed 14 September 2021) Director & Shareholder Director fees 7 -

David Kerr (resigned 29 October 2020) Director & Shareholder Director fees - 12


Directors’ fees for John Fernandes, Norah Barlow and Wayne Williams for the year ended 31 March 2022 also

includes fees as members of the Audit Committee. John Fernandes, Chair receives a fee of $5,000 per annum,

while Norah Barlow and Wayne Williams each receive a fee of $2,500 per annum. The amounts to Norah

Barlow and Wayne Williams remained unpaid as of 31 March 2022.


Directors’ fees for the year ended 31 March 2021 of $59,500 for services rendered during the period includes

$36,000 of shares in the Parent in compensation for services rendered during the period.


Loan receivable from Third Age Digital Health Limited (TADH) (note 16)


Bevan Walsh (Director and Shareholder), Michael Haskell (former CEO, resigned 30 September 2021 and

Shareholder) and Diane Budres (Director and Shareholder) are all shareholders of TADH which has a loan due

to Company (see note 16). Michael Haskell is also a Director of TADH. Bevan Walsh resigned as a director of

TADH on 20 December 2021.


25.3. Key management personnel compensation


2022 2021

Short term benefits:

$000 $000

CEO remuneration


Tony Wai 151 -

Michael Haskell (resigned 30 September 2021) 110 483


261 483


Other key management personnel 436 182


697 665


CEO remunerations in 2022 includes remuneration for Tony Wai, CEO and former CEO Michael Haskell who

resigned on 30 September 2021.


In 2021 Directors’ remuneration of $59,500 was included in Other key management personnel. This number is

now disclosed under Related Party Transactions (note 25.2).


CEO long term incentive


On 4 September 2021, the Company entered into a long-term employee share option plan with CEO, Tony Wai

(note 24.2). The costs attributable to the options during the financial year are disclosed in note 24.3.

26. Contingent liabilities and contingent assets


The Group has no contingent liabilities or contingent assets as at 31 March 2022 (2021: Nil).


Third Age Health Services Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2022



54


27. Subsequent events


27.1. Final dividend declared


On 30 May 2022 the Board declared a final dividend for the year of 4.05 cents per share taking the total

dividend for the year to 8.57 cents per share.


27.2. Acquisition of Devonport Family Medicine


On 2 May 2022 the Company acquired the business and assets of Devonport Family Medicine (DFM) for cash

consideration of $0.4 million and was acquired as a continuation of the Group’s growth strategy, a key

acquisition which will enable the Company to continue to develop the model of healthcare for older people.


Given the short timeframe since acquisition date and the complexity involved, the accounting for the business

combination under NZ IFRS 3 Business Combinations has not been finalised as at the date of this report. The

Company will report the impact of the acquisition on the Group in the Interim Financial Statements for the six

months ending 30 September 2022.


The acquisition of DFM has no impact on the results presented in these Consolidated Financial Statements for

the year ended 31 March 2022, given the acquisition occurred after the end of the reporting period.


27.3. ANZ loan facility


Subsequent to year end the Company entered into a $3 million debt facility with ANZ Bank New Zealand

Limited to provide capital to support the Group’s planned acquisition strategy.


Key terms of the facility are:

• Amount: $3 million.

• Lender: ANZ Bank New Zealand Limited.

• Borrower: Third Age Health Services Limited.

• Guarantors: Third Age Health Services Limited and Group trading companies

• Term: 2 years.

• Covenants: A Debt-to-EBITDA (based on 12 “months” results) is capped at two times, tested at each

reporting date.

• Security: a first ranking security over the borrower and guarantors which includes cross guarantee and

indemnity of debt.


The loan was drawn to fund the acquisition of Devonport Family Medicine and will be utilised for future

acquisitions.




No other matter or circumstances has occurred subsequent to year end that has significantly affected or may

affect, the operations of the Group, the results of those operations or the state of affairs of the entity in

subsequent financial years.

A member firm of Ernst & Young Global Limited


Independent auditor’s report to the Shareholders of Third Age Health Services

Limited

Opinion

We have audited the financial statements of Third Age Health Services Limited (“the Company”) and its

subsidiaries (together “the Group”) on pages 22 to 54, which comprise the consolidated statement of

financial position of the Group as at 31 March 2022, and the consolidated statement of comprehensive

income, consolidated statement of changes in equity and consolidated statement of cash flows for the

year then ended of the Group, and the notes to the consolidated financial statements including a

summary of significant accounting policies.

In our opinion, the consolidated financial statements on pages 22 to 54 present fairly, in all material

respects, the consolidated financial position of the Group as at 31 March 2022 and its consolidated

financial performance and cash flows for the year then ended in accordance with New Zealand

equivalents to International Financial Reporting Standards and International Financial Reporting

Standards.

This report is made solely to the Company's shareholders, as a body. Our audit has been undertaken so

that we might state to the Company's shareholders those matters we are required to state to them in an

auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the Company and the Company's shareholders, as a body,

for our audit work, for this report, or for the opinions we have formed.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our

responsibilities under those standards are further described in the Auditor’s Responsibilities for the

Audit of the Financial Statements section of our report.

We are independent of the Group in accordance with Professional and Ethical Standard 1 International

Code of Ethics for Assurance Practitioners (including International Independence Standards) (New

Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our

other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Other than in our capacity as auditor we have no relationship with, or interest in, the Company or any of

its subsidiaries. Partners and employees of our firm may deal with the Group on normal terms within the

ordinary course of trading activities of the business of the Group.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our

audit of the consolidated financial statements of the current year. These matters were addressed in the

context of our audit of the consolidated financial statements as a whole, and in forming our opinion

thereon, but we do not provide a separate opinion on these matters. For each matter below, our

description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the

financial statements section of the audit report, including in relation to these matters. Accordingly, our

audit included the performance of procedures designed to respond to our assessment of the risks of

A member firm of Ernst & Young Global Limited

material misstatement of the financial statements. The results of our audit procedures, including the

procedures performed to address the matters below, provide the basis for our audit opinion on the

accompanying consolidated financial statements.

Revenue

Why significant How our audit addressed the key audit matter

Revenue is a key focus of shareholders and

management in measuring the Group’s

progress towards its growth objectives.

The Group’s principal revenue stream, the

provision of consultation services, continues

to be recognised at the point in time at which

the service is provided.

The Group’s other significant revenue stream,

the provision of capitation services, is

recognised over time as the service is

provided. As billing takes place on a monthly

basis there is no deferral of revenues.

Disclosures in relation to the Group’s revenue

are included in Note 5 to the consolidated

financial statements.


In obtaining our audit evidence we:

► considered management’s assessment of the

Group’s contracts with customers, the related

performance obligations and the resultant

revenue recognition approach;


► assessed the Group’s revenue recognition

accounting policies and procedures against the

requirements of NZ IFRS 15 Revenue from

Contracts with Customers;


► analysed the correlation between the Group’s

recorded revenue and movements in accounts

receivable and cash using data analysis

techniques;


► selected a sample of revenue transactions

recorded around period end and assessed

whether they had been recorded in the correct

period; and


► evaluated whether the disclosures in relation

to revenue were in compliance with the

disclosure requirements of NZ IFRS 15

Revenue from Contracts with Customers.


A member firm of Ernst & Young Global Limited

Information other than the financial statements and auditor’s report

The Directors of the company are responsible for the Annual Report, which includes information other

than the consolidated financial statements and auditor’s report.

Our opinion on the consolidated financial statements does not cover the other information and we do

not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the

other information and, in doing so, consider whether the other information is materially inconsistent

with the consolidated financial statements or our knowledge obtained during the audit, or otherwise

appears to be materially misstated.

If, based upon the work we have performed, we conclude that there is a material misstatement of this

other information, we are required to report that fact. We have nothing to report in this regard.

Directors’ responsibilities for the financial statements

The Directors are responsible, on behalf of the entity, for the preparation and fair presentation of the

consolidated financial statements in accordance with New Zealand equivalents to International Financial

Reporting Standards and International Financial Reporting Standards, and for such internal control as

the Directors determine is necessary to enable the preparation of financial statements that are free

from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Directors are responsible for assessing on behalf

of the entity the Group’s ability to continue as a going concern, disclosing, as applicable, matters

related to going concern and using the going concern basis of accounting unless the Directors either

intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements

as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with International Standards on Auditing (New

Zealand) will always detect a material misstatement when it exists. Misstatements can arise from fraud

or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these consolidated financial

statements.

A further description of the auditor’s responsibilities for the audit of the financial statements is located

at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-

practitioners/auditors-responsibilities/audit-report-1/. This description forms part of our auditor’s

report.

The engagement partner on the audit resulting in this independent auditor’s report is Graeme Bennett


Chartered Accountants

Auckland

17 June 2022



58

Third Age Health Services Limited
Corporate Governance


59


The objective of the Board of Third Age Health Services Limited (“the Company”) is to enhance shareholder

value. The Board considers there is a strong link between good corporate governance and the achievement of

this objective.


The company seeks to follow the best-practice recommendations for listed companies to the extent that it is

appropriate to the size and nature of the Company’s operations. The best practice principles which the

Company considers in its governance approach are the New Zealand Exchange (NZX) Listing Rules relating to

corporate governance, and the NZX Corporate Governance Code (NZCGC), and the Financial Market

Authority’s Corporate Governance Principles and Guidelines, (altogether “Principles”).


The Board considers that its corporate governance framework complies with NZCGC recommendation, except

as stated within this report. This report is presented by addressing the eight principles and the associated

recommendations of the NZCGC.


The information in this report is current as at the date of release of the Annual Report for the year ended 31

March 2022 and has been approved by the Board.


The key corporate governance documents referred to in this report are available under the investors section of

the Company’s website at https://www.thirdagehealth.co.nz



Principle 1 – Code of Ethical Behaviour


Recommendation 1.1

“The Board should document minimum standards of ethical behaviour to which the issuer’s directors and

employees are expected to adhere (a code of ethics).

The code of ethics and where to find it should be communicated to the issuer’s employees. Training should be

provided regularly. The standards may be contained in a single policy document or more than one policy.

The code of ethics should outline internal reporting procedures for any breach of ethics, and describe the

issuer’s’ expectations about behaviour, namely that every director and employee:

a. acts honestly and with personal integrity in all actions;

b. declares conflicts of interest and proactively advises of any potential conflicts;

c. undertakes proper receipt and use of corporate information, assets and property;

d. in the case of directors, give proper attention to the matters before them;

e. acts honestly and in the best interest of the issuer, as required by law, and takes account of interests of

shareholders and other stakeholders;

f. adheres to any procedures around giving and receiving gifts (for example where gifts are given that are of

value in order to influence employees and directors, such gifts should not be accepted);

g. adheres to any procedures about whistle blowing (for example, where actions of a whistle blower have

complied with the issuer’s procedures, an issuer should protect and support the, whether or not action is

taken): and

h. manages breaches of the code”


The Company complies with this recommendation, though the Code of Ethics was published in March 2022.

Directors observe and foster high ethical standards. The Company expects its Directors, officers, and

employees to act legally, to maintain high ethical standards, and to act with integrity consistent with the

Company’s policies, guiding principles and values. The Company adopts policies to ensure it maintains high

standards of performance and behaviour when dealing with the Company’s customers, suppliers, shareholders

Third Age Health Services Limited
Corporate Governance


60


and staff. The specific governance policies in place throughout the year were a Diversity and Inclusion policy,

Market Disclosure Policy and the Financial Products Trading policy.


The Code of Ethics can be found on the investor section of the Company’s website

(https://www.thirdagehealth.co.nz).


Recommendation 1.2

“An issuer should have a financial product dealing policy which applies to employees and directors.”


The Company complies with this recommendation. The Financial Products Trading Policy can be found on the

investor section of the Company’s website (https://www.thirdagehealth.co.nz/).



Principle 2 - Board composition & Performance


Recommendation 2.1

“The board of the issuer should operate under a written charter which set out the roles and responsibilities of

the board. The board charter should clearly distinguish and disclose the respective roles and responsibilities of

the board and management.”


The Company complies with this recommendation, with the board operating under a Board charter which is

available on the investor section of the Company’s website (https://www.thirdagehealth.co.nz).


Recommendation 2.2

“Every issuer should have a procedure for the nomination and appointment of directors to the board.”


The Company complies with this recommendation. The Board has decided that these functions will be carried

out by the main board within the terms of reference of this Board Charter. A copy of the Board Charter is

available on the investor section on the Company’s website (https://www.thirdagehealth.co.nz).


Recommendation 2.3

“An issuer should enter into written agreements with each newly appointed director establishing the terms of

their appointment.”


The Company complies with this recommendation. All current Directors and senior executives have entered

into written agreements with the Company setting out the terms of their appointment. In accordance with the

NZX Listing Rules, all Directors are required to retire (though may be re-elected) not later than the third annual

meeting following the Director’s appointment, or after three years, whichever is longer. Any Directors

appointed by the Board since the previous annual meeting must also retire and are eligible for election.


Recommendation 2.4

“Every issuer should disclose information about each director in its annual report or on its website, including

profile of experience, length of service, independence and ownership interest and director attendance at Board

meetings.”


The Company complies with this recommendation. The biographies of the Directors are available in this

Annual Report and on the Company’s website (https://www.thirdagehealth.co.nz).


With regard to Board meeting attendance, the Board meets as often as it deems appropriate, including

sessions to review the performance of the business, to consider the strategic direction and to approve annual

Third Age Health Services Limited
Corporate Governance


61


budgets. As is common nowadays, video conferences are mostly used which also suits the dispersed nature of

the Board and management.


The table below sets out Director attendance at Board meetings during FY22, including meetings to approve

strategic plans, budgets and the release of annual and half year results.


Director Number of meetings

eligible to attend

Number of meetings

attended

Bevan John Walsh 9 9

John Samuel Ronny Fernandes 9 9

Norah Kathleen Barlow 9 9

Wayne Geoffrey Williams (appointed 10 June 2021) 8 8

Diane Lynn Budres (appointed 14 September 2021)

5 5


Recommendation 2.5

“An issuer should have a written diversity policy which includes requirements for the board or a relevant

committee of the board to set measurable objectives for achieving diversity (which at a minimum should

address gender diversity) and to assess annually both the objectives and the entity’s progress in achieving

them. The issuer should disclose the policy or a summary of it.”


The company complies with this recommendation, though is still developing measurable diversity and

inclusion objectives that it can review and report against annually. A written policy can be found on the

investor section of the Company’s website (https://www.thirdagehealth.co.nz).


NZX listed issuers are required to report quantitative data on the gender breakdown of Directors and Officers

at the financial year end. The policy behind the rule is to provide information to allow investors to maintain an

informed view of diversity as a factor relevant to an Issuer’s expected performance.


As at 31 March 2022 the mix of male and female of the Board and Company’s Key Management Personnel (the

CEO and persons that report to the CEO) was as follows:



2022 2021

Male Female Male Female

Non-executive Directors 3 2


2 1


Key Management Personnel 4 5


2 2


Recommendation 2.6

“Directors should undertake appropriate training to remain current on how to best perform their duties as

directors of an issuer.”


Members of the Board undertake regular professional training to remain current on how best to perform their

duties. The Company encourages all Directors to undertake appropriate training and education so that they

may best perform their duties. This may include attending presentations on changes in governance, legal and

regulatory frameworks; attending technical and professional development courses; site visits and briefings

from key executives; and attending presentations from industry experts and key advisers.




Third Age Health Services Limited
Corporate Governance


62


Recommendation 2.7

“The Board should have a procedure to regularly assess director, board, and committee performance.”


The Board have introduced an assessment process to enable an annual assessment of the Directors, and the

Board plus senior executives. The Board considers individual and collective performance, together with the

skill sets, training and development and succession planning required to govern the business.


Recommendation 2.8

“A majority of the Board should be independent directors.”


The Company complies with this recommendation. In determining directors’ independence, the Board has

applied factors outlined in the commentary to Corporate Governance Code recommendation 2.4.


The Board currently comprises five Directors, three of whom are independent:

• Bevan John Walsh, Chairman, Non-independent Director.

• John Samuel Ronny Fernandes, Independent Director.

• Norah Kathleen Barlow, Independent Director.

• Wayne Williams, Independent Director (appointed 10 June 2021).

• Diane Budres, Non-independent Director (appointed 14 September 2021).


Directors’ interests disclosed for the financial year ended 31 March 2022 are provided in the Shareholder and

Statutory Information section of this Annual Report.


Recommendation 2.9

“An issuer should have an independent chair of the Board. If the chair is not independent, the chair and the

CEO should be different people.”


During the year ended 31 March 2022, the Company partly complied with this recommendation noting that

the chair is not independent, but the chair and CEO are different people. The Board has determined that Bevan

John Walsh (Chair) is not independent by virtue of his significant shareholding. However, the Board considers

that the skills and experience provided by Mr. Walsh and the alignment of interests with other shareholders

outweigh any benefits of the recommendation that the chair be independent. The Board further considers

that despite Mr. Walsh being non independent the majority of the other Directors are independent non-

executive Directors and so there is sufficient openness and challenging of opinions to ensure a diversity of

views are considered by the Board, and the Chairman’s independent decision making is not compromised.


It was announced to the NZX on 30 May 2022 that Bevan Walsh will be stepping down as Chair and that John

Fernandes (Independent Director) will be appointed as Chair at the conclusion of the forthcoming Annual

General Meeting.



Principle 3 – Board Committees


Recommendation 3.1

“An issuer’s audit committee should operate under a written charter. Membership on the audit committee

should be a majority of independent directors and comprise solely on non-executive directors of the issuer. The

Chair of the audit committee should be an independent director and not the chair of the board.”


The Company complies with this recommendation. The board operates an Audit Committee which provides a

forum for the effective communication between the Board and external auditors. The Committee reviews the

Third Age Health Services Limited
Corporate Governance


63


annual and half-yearly financial statements, prior to their approval by the Board, the effectiveness of internal

control, the Company finance function, information systems, and the efficiency and effectiveness of the audit

function.


During the year ended 31 March 2022 the Committee comprised of John Fernandes (Chair and Independent

Director), Norah Barlow (Independent Director) and Wayne Williams (Independent director), appointed

following his appointment to the Board on 10 June 2021. Bevan Walsh (Non-independent Director) resigned

from the Committee on 18 October 2021. The Audit Committee Charter can be found on the investors section

of the Company’s website (https://www.thirdagehealth.co.nz).


It was announced to the NZX on 30 May 2022 that John Fernandes (Audit Committee Chair and Independent

Director) will be appointed as Chair of the Board at the conclusion of the forthcoming Annual General Meeting.

Wayne Williams (Independent Director) will take over as Audit Committee Chair and John Fernandes will

remain a member of the Committee.


The table below sets out Director’s attendance at Audit Committee meetings during FY22.


Director Number of meetings

eligible to attend

Number of meetings

attended

John Samuel Ronny Fernandes

3 3

Norah Kathleen Barlow

3 3

Wayne Geoffrey Williams (appointed 10 June 2021)

3 3

Bevan John Walsh (resigned 18 October 2021) 1 1



Recommendation 3.2

“Employees should only attend the audit committee at the invitation of the audit committee.”


The Company complies with this recommendation. Employees and other non- members of the committee

only attend by invitation.


Recommendation 3.3

“An issuer should have a remuneration committee which operates under a written charter (unless this is carried

out by the whole board). At least a majority of the remuneration committee should be independent directors”.


Given the size and nature of the Board there is no standing committees for remuneration, but the Board has

decided that these functions will be carried out by the main Board within the terms of reference of the Board

Charter. A copy of the Board Charter is available on the investors section of the Company’s website

(https://www.thirdagehealth.co.nz).


Recommendation 3.4

“An issuer should establish a nominations committee to recommend director appointments to the Board

(unless this is carried out by the whole Board) which should operate under a written charter. At least a

majority of the nominations committee should be independent directors.”


Given the size and nature of the Board there is no standing committees for nominations, but the Board has

decided that these functions will be carried out by the main board within the terms of reference of the Board

Charter. A copy of the Board Charter is available on the investor section of the Company’s website

(https://www.thirdagehealth.co.nz).

Third Age Health Services Limited
Corporate Governance


64


Recommendation 3.5

“An issuer should consider whether it is appropriate to have any other board committees as standing

committees. All committees should operate under written charters. An issuer should identify the members of

each of its committees, and periodically report member attendance.”


The Board will continue to access the requirements for further standing committees. The Board will use

standing committees where this will enhance its effectiveness in key areas, while still retaining Board

responsibility.


Recommendation 3.6

“The board should establish appropriate protocols that set out the procedure to be followed if there is a

takeover offer for the issuer including any communication between insiders and the bidder. The board should

disclose the scope of independent advisory reports to shareholder. These protocols should disclose the option of

establishing an independent takeover committee, and the likely composition and implementation of an

independent takeover committee.”


In the case of a takeover offer, the Company will form an Independent Takeover Committee to oversee

disclosure and response and engage expert legal and financial advisors to provide advice on procedure. The

Company does not have a formal Takeover Response Policy at this stage and so is not compliant with this

recommendation.



Principle 4 - Reporting and disclosure


Recommendation 4.1

“The issuer’s board should have written continuous disclosure policy.”


The Company complies with this recommendation. The Company’s directors are committed to keeping

investors and the market informed of all material information about the Company and its performance, in a

timely manner. The company has adopted a Market Disclosure Policy to ensure that material information is

identified, reported, assessed and, where required, disclosed to the market in a timely manner. A copy of the

Policy is available on the investors section of the Company’s website (https://www.thirdagehealth.co.nz).


Recommendation 4.2

“An issuer should make its code of ethics, board and committee charters and the policies recommended in the

NZX Code, together with any other key governance documents, available on its website.”


The Company complies with this recommendation. Published policies and charters are found the investor

section of the Company’s website (https://www.thirdagehealth.co.nz).


Recommendation 4.3

“Financial reporting should be balanced, clear and objective. An issuer should provide non-financial disclosures

at least annually, including considering environmental, economic, and social factors and practices. It should

explain how operational or non-financial targets are measured. Non-financial reporting should be informative,

include forward looking assessments, and align with key strategies and metrics monitored by the board.”


In addition to all information required by law, the Company also seeks to provide meaningful information to

ensure stakeholders and investors are well informed, including financial and non-financial information.



Third Age Health Services Limited
Corporate Governance


65


Financial Information

Senior Management is responsible for implementing and maintaining appropriate accounting and financial

reporting principles, policies, and internal controls designed to ensure compliance with accounting standards

and applicable laws and regulations.


The Board’s Audit Committee oversees the quality and integrity of external financial reporting, including the

accuracy, completeness, balance and timeliness of financial statements. It reviews the Company’s full and half

year financial statements and makes recommendations to the Board concerning accounting policies, areas of

judgement, compliance with accounting standards, stock exchange and legal requirements, and the results of

the external audit.


For the financial year ended 31 March 2022, the Directors believe that proper accounting records have been

kept that enable the determination of the Company’s financial position with reasonable accuracy and facilitate

compliance of the financial statements with the Financial Markets Conduct Act 2013.


The Company’ full and half year financial statements are available on the investor section of the Company’s

website (https://www.thirdagehealth.co.nz).


Non‑financial information

The Company sets out, reports against and discusses its strategic objectives in a variety of communications

including the Chair and CEO’s commentary in reports to shareholders.



Principle 5 – Remuneration


Recommendation 5.1

“An issuer should recommend director remuneration to shareholders for approval in a transparent manner.

Actual director remuneration should be clearly disclosed in the issuer’s annual report.”


The Company complies with this recommendation. Remuneration of Directors and senior executives is a key

responsibility of the Board. The Board ensures that remuneration is benchmarked to the market for, Director

and Board positions.


Recommendation 5.2

“An issuer should have a remuneration policy for remuneration of directors and officers, which outlines the

relative weightings of remuneration component and relevant performance criteria.”


The Company complies with this recommendation.


Director remuneration

The total remuneration pool available for Directors was fixed at listing at $150,000 per annum for all non-

executive Directors. This was applied to four directors and following the appointment of a fifth director on 14

September 2021 the pool was increased to $185,000 under Listing Rule 2.11.3. The Board determines the level

of remuneration paid to Directors from that pool. Directors also receive reimbursement for reasonable

travelling, accommodation and other expenses incurred in the course of performing their duties.

Third Age Health Services Limited
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66


Any proposed increases in pool of fees for non-executive Director fees and remuneration will be put to

shareholders for approval. If independent advice is sought by the Board, it will be disclosed to shareholders as

part of the approval process.


Board role approved remuneration

The fees payable to a non-executive Chair currently amount to $12,000 per annum plus a performance-based

fee of $23,000 payable on achievement of agreed growth targets. The fees payable to the Independent

Directors is $35,000 per annum. The Chair of the Audit Committee receives $5,000 per annum while members

receive $2,500 per annum.


Executive remuneration

In general, executive remuneration comprises a fixed base salary, an at-risk short-term incentive payable

annually linked to business performance and incentives linked to longer term share growth. At-risk incentives

are paid against targets agreed with executives at the commencement of the period and are based on financial

measures, mainly earnings targets.


Recommendation 5.3

“An issuer should disclose the remuneration arrangements in place for the CEO in its annual report. This should

include disclosure of base salary, short term incentives and long-term incentives and the performance criteria

used to determine performance-based payments.”


The Company complies with this recommendation. The CEO remuneration is detailed under note 25.3 of the

Consolidated Financial Statements.



Principle 6 - Risk Management


Recommendation 6.1

“An issuer should have a risk management framework for its business and the issuer’s board should receive and

review regular reports. An issuer should report the material risks facing the business and how these are being

managed.”


The Board has overall responsibility for the Company’s system of risk management and internal control. The

Board delegates day-to-day management of the risk to the CEO. In addition, the Audit Committee provides an

additional and more specialised oversight of the Company’s risks in addition to the oversight provided by the

Board.


Risk Identification

The senior management team is required to regularly identify the major risks affecting the business and

develop structures, practices, and processes to manage and monitor these risks. The CEO provides an updated

risk register at each Board meeting.


Insurance

The Company maintains insurance policies that it considers adequate to meet its insurable risks.


Recommendation 6.2

“An issuer should disclose how it manages its health and safety risks and should report on its health and safety

risks, performance and management.”

Third Age Health Services Limited
Corporate Governance


67


The Company complies with this recommendation, with formal reporting to the board on its health and safety

risks, performance and management at Board meetings.



Principle 7 – Auditors


Recommendation 7.1

“The board should establish a framework for the issuer’s relationship with its external auditors. This should

include

a. For sustaining communication with the issuer’s external auditors;

b. To ensure that the ability of the external auditors to carry out their statutory audit role is not impaired, or

could reasonably be conceived to be impaired;

c. To address what, if any services (whether by type or level) other than their statutory audit roles may be

provided by the auditors to the issuer: and

d. To provide for the monitoring and approval by the issuer’s audit committee of any service provided to the

issuer other than in their statutory audit role.”


The Company complies with this recommendation. The Board is committed to ensuring audit independence,

both in fact and appearance, so that the Company’s external financial reporting is viewed as being highly

objective and without bias. The Audit Committee reviews the quality and cost of the audit undertaken by the

Company’s external auditors and provides a formal channel of communication between the Board, senior

management, and external auditors.


The Audit Committee approves the auditor’s terms of engagement, audit partner rotation (at least every five

years) and audit fee and reviews and provides feedback in respect of the annual audit plan. The Audit

Committee periodically has time with the external auditor without management present. The Committee also

assesses the auditor’s independence on an annual basis.


All audit work of the Company is fully separated from non-audit services to ensure that appropriate

independence is maintained. There were no other services provided by EY in FY22. The amount of fees paid to

EY for audit and non-audit work are identified on note 9 of the Consolidated Finance Statements.


EY has provided the Committee with written confirmation that, in its view, it was able to operate

independently during the year.


Recommendation 7.2

“The eternal auditor should attend the issuer’s Annual Meeting to answer questions from shareholders in

relation to the audit.”


The Company complies with this recommendation. EY will be invited to attend the FY22 Annual Shareholders’

Meeting and will be available to answer questions from shareholders at the meeting.


Recommendation 7.3

“Internal audit functions should be disclosed.”


The Company has a number of internal controls which are overseen by the Audit Committee and/or the Board.

These include controls for business continuity management, insurance, health and safety, conflicts of interest,

and prevention and identification of fraud. Given the size of the business the Company does not have an

Third Age Health Services Limited
Corporate Governance


68


internal audit function but last year engaged professional advisors Deloitte to undertake a review of internal

controls and will consider undertaking further reviews in the future.



Principle 8 – Shareholder rights and relations


Recommendation 8.1

‘An issuer should have a website where investors and interested stakeholders can access financial and

operational information and key corporate governance information about the issuer.”


The Company complies with this recommendation. The Company’s website can be found at

https://www.thirdagehealth.co.nz.


Recommendation 8.2

“An issuer should allow investors the ability to easily communicate with the issuer, including the option to

receive communications from the issuer electronically.”


The Company complies with this recommendation. The Board is committed to open and regular dialogue and

engagement with shareholders. The Company seeks to ensure that investors understand its activities by

communicating effectively with them and giving them access to clear and balanced information.


The Company has a calendar of communications and events for shareholders, including but not limited to:

• Half and full Year Results Announcements and Annual Report.

• Market announcements.

• Annual Shareholders’ Meeting.

• Scheduled and ad hoc investor presentations to institutional investors and retail brokers.

• Easy access to information through the Company’s website (https://www.thirdagehealth.co.nz).

• Access to management and the Board via a dedicated email address, investors@thirdagehealth.co.nz.


Recommendation 8.3

“Quoted equity security holders have the right to vote on major decisions which may change the nature of the

issuer in which they are invested.”


The Company complies with his recommendation. Shareholders are actively encouraged to attend the Annual

Shareholders’ Meeting and may raise matters for discussion at this event and may vote on major decisions that

affect the Company. Voting is by poll, upholding the ‘one share, one vote’ philosophy.


In accordance with the Companies Act 1993, the Company’s Constitution and the NZX Main Board Listing

Rules, the Company refers major decisions that may change the nature of the Company to shareholders for

approval. All shareholders are given the option to elect to receive electronic communications from the

Company. In addition to shareholders, the Company has a wide range of stakeholders and maintains open

channels of communication for all audiences, including brokers, the investing community, regulators, staff,

customers and suppliers.


Recommendation 8.4

“If seeking additional equity capital, issuers of quoted securities should offer further equity securities to existing

equity security holders of the same class on a pro rata basis and no less favourable before further equities are

offered to other investors.”

Third Age Health Services Limited
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69


In the event that the Company will seek additional equity capital, the Company will seek to offer further equity

securities to existing equity security holders of the same class on a pro rata basis and no less favourable before

further equities are offered to other investors.


Recommendation 8.5

“The board should ensure that the notices of annual or special meetings of quoted equity security holders is

posted on the issuer’s website as soon as possible and at least 20 working days prior to the meeting.”


The Company has complied with this recommendation.





Third Age Health Services Limited
Shareholder and statutory information


70


1. Additional information required under the NZX Listing Rules


Twenty largest registered shareholders as of 31 May 2022


The Company has one class of equities, Ordinary Shares listed on the NZX Main Board under the ticker code

TAH.


The following table shows the names and holdings of the 20 largest registered holdings of listed ordinary

shares of the Company on 31 May 2022.


Shareholders Shares held at

31 May 2022

% of listed

capital

Bevan John Walsh 4,329,617 43.51%

Michael Haskell & Associates Limited 2,557,123 25.70%

Timothy Grant Livingstone & Robert Peter Webber <W. W. Flaunty Family A/C> 820,500 8.25%

New Zealand Depository Nominee <1 A/C> 336,956 3.39%

Diane Lynn Budres 248,392 2.50%

Terence De Silva 200,500 2.02%

Lenore Deirdre Bauer 156,500 1.57%

Brian Hezelton Walsh 126,379 1.27%

Jiahuan Fu 114,490 1.15%

FNZ Custodians Limited 101,480 1.02%

JSRF Limited 81,506 0.82%

Custodial Services Limited <4 A/C> 41,000 0.41%

Bruce John Mccullagh 37,000 0.37%

Dellow Nominees Limited 33,400 0.34%

Gore Holdings Limited 25,000 0.25%

John Franich & Sarah Franich <Franich Family A/C> 25,000 0.25%

Norah Kathleen Barlow & Robert Noel Barlow <Kensington A/C> 24,490 0.25%

Dean Neil Edgerton & Nicole Tonnile Edgerton & William Desmond Edgerton <Edgerton

Family A/C>

24,000 0.24%

Arthur Smethurst & Brenda Smethurst & Leigh Smethurst <Excalibur A/C> 23,000 0.23%

Brett Hiirini Shepherd 20,000 0.20%



9,326,333 93.73%



The total number of voting securities of the Company at 31 March 2022 was 10 million ordinary shares of

which 9,950,000 are listed on the NZX and 50,000 are held on Trust registered to Bevan John Walsh & T A Wai

<Third Age Health (ESOP Holding) A/C> for The Employee Share Trust. The Employee Share Trust grants

options to acquire ordinary shares to Third Age Health employees and their associated entities.






Third Age Health Services Limited
Shareholder and statutory information


71


Spread of shareholders as at 31 May 2022

The following table is the spread of listed shareholders as of 31 May 2022


Shareholder size Number of Holders Total Shares listed % of listed capital

1-1,000 90 46,792 0.5%

1,001-5,000 64 194,871 2.0%

5,001-10,000 23 194,121 2.0%

10,001-50,000 22 440,773 4.4%

50,001-100,000 1 81,506 0.8%

Greater than 100,000 10 8,991,937 90.4%



210 9,950,000 100.0%


Shareholding of Directors as of 31 March 2022

Director

2022 2021


Shares Shares

Bevan John Walsh

4,329,617 4,332,731

John Samuel Ronny Fernandes

91,168 91,168

Norah Kathleen Barlow

24,490 24,490

Wayne Geoffrey Williams (appointed 10 June 2021)

- -

Diane Lynn Budres (appointed 14 September 2021) 248,392 248,392


Michael Haskell resigned as a director on 23 May 2021. On 31 March 2021 he held 3,372,711 shares. He

remains a Substantial Shareholder.

2. Additional information required under the Financial Markets Conduct Act

2013


Substantial Security Holders

Information on Substantial Security Holders is provided pursuant to section 293 of the Financial Markets

Conduct Act 2013 (the “Act”) and details the Substantial Security Holders in the Company and their relevant

interests in the Company’s shares as of 31 March 2022. A person has a substantial holding for the purposes of

the Act if the person has a relevant interest in quoted voting products that comprise 5% or more of a class of

quoted voting products of the listed issuer.


Investor name Shares held

at 31 March 2022

% of issued

capital

Bevan John Walsh 4,329,617 43.51%

Michael Haskell & Associates Limited 3,051,258 30.67%


Lenore Deirdre Bauer


Beneficial ownership

1

1,514,972


Direct ownership 156,500



1,671,472 16.80%


1. This relates to an informal agreement relating to the beneficial ownership of a share of the shares held by Bevan John Walsh, the

exercise of voting rights attaching to those Share, and any acquisition or disposal of those Shares

Third Age Health Services Limited
Shareholder and statutory information


72


3. Additional information required under the Companies Act 1993


Directors’ remuneration and other benefits

The names of the directors of the Company who held office and the details of their remuneration and value of

other benefits received for services to Third Age Health Services Limited for the year ended 31 March 2022

were:



Board Fees Audit Committee

Fees


$ $

Bevan John Walsh

12,000 -

John Samuel Ronny Fernandes

35,000 5,000

Norah Kathleen Barlow

35,000 2,500

Wayne Geoffrey Williams (appointed 10 June 2021)

26,833 2,500

Diane Lynn Budres (appointed 14 September 2021)

7,000 -




115,833 10,000


The amounts to Norah Barlow and Wayne Williams remained unpaid as of 31 March 2022.


Former CEO, Michael Haskell resigned as a director on 23 May 2021. Michael Haskell resigned as CEO on 30

September 2021, his remuneration is disclosed in note 25.3 of the Consolidated Financial Statements.



Interests register

Directors have given notices disclosing interests pursuant to section 140(1) of the Companies Act 1993.

Particulars of entries recorded in the Company’s Interests Register during the financial year ended 31 March

2022 are set out in the following table.


Director Nature of disclosure


Bevan John Walsh 1 Bevan Walsh is a major shareholder of The Company TAH and Third Age

Digital Health Limited (TADH). Bevan Walsh resigned as a director of TADH on

20 December 2021. The Company is owned money from TADH. Details of the

loan are provided in note 16 of the Consolidated Financial Statements.


2 Indemnified to the extent allowed by the Companies Act 1993 and the

company constitution.


3 Directors and Officers insurance cover provided by the Company


John Samuel Ronny Fernandes 1 Indemnified to the extent allowed by the Companies Act 1993 and the

company constitution.


2 9,662 Shares (0.10%) in the Company, held as registered and beneficial owner


3 81,506 Shares (0.82%) in the Company held by JSRF Limited, in which John

Fernandes has a relevant interest as sole director and shareholder.

Third Age Health Services Limited
Shareholder and statutory information


73


Director Nature of disclosure


4 JSRF Limited (a company owned 100% by John Fernandes) holds an option to

purchase a further 100,000 Shares (1.03%) held by another shareholder (who

is not a director or senior manager) at $2.15 per Share. That option can be

exercised in part or in full at any time until 30 June 2024.


5 Directors and Officers insurance cover provided by the Company



Norah Kathleen Barlow 1 Norah Barlow holds a position as CEO of a client of the Company


2 24,490 (0.25%) shares in the Company held by Norah Kathleen Barlow and

Robert Noel Barlow in their capacities as trustees of a family trust associated

with Norah Barlow


3 Indemnified to the extent allowed by the Companies Act 1993 and the

company constitution.


4 Directors and Officers insurance cover provided by the Company



Wayne Geoffrey Williams

(appointed 10 June 2021)

1 Indemnified to the extent allowed by the Companies Act 1993 and the

company constitution.


2 Directors and Officers insurance cover provided by the Company





Diane Lynn Budres (appointed 14

September 2021)

1 Indemnified to the extent allowed by the Companies Act 1993 and the

company constitution.


2 Directors and Officers insurance cover provided by the Company



Michael Bruce Haskell (resigned as

a Director on 23 May 2021)

1 Michael Haskell (the former Company CEO) provides services to the Company

under a commercially negotiated contractor arrangement.


2 Michael Haskell is a shareholder of both the Company and Third Age Digital

Health Limited (TADH). The Company is owned money from TADH. Details of

the loan are provided in note 16 of the Consolidated Financial Statements


3 Indemnified to the extent allowed by the Companies Act 1993 and the

company constitution.


4 Directors and Officers insurance cover provided by the Company



Indemnity and insurance

The Company has entered into deeds of indemnity in favour of all its directors. The Company has insured all its

directors against liabilities and costs in accordance with section 162(5) of the Companies Act 1993.



Third Age Health Services Limited
Shareholder and statutory information


74


Employees’ remuneration

The number of employees or former employees, not being Directors of the Group, who received remuneration

and other benefits in their capacity as employees, the value of which exceeds $100,000 is set out below:


2022 2021

Number Number

$160,000 - $169,999 1 -



Amount payable to auditors

The amount payable to our auditor is $56,650 (2021: $46,760).



Donations

The Company made no donations during the year ended 31 March 2022.

Third Age Health Services Limited
Corporate directory


75




Registered office

536 Kennedy Road

Greenmeadows Napier


New Zealand Company number

3189884


Directors

Bevan John Walsh (Chairman, Non-independent)

John Samuel Ronny Fernandes (Independent)

Norah Kathleen Barlow (Independent)

Wayne Geoffrey Williams (Independent), appointed 10 June 2021

Diane Lynn Budres (Non-Independent), appointed 14 September 2021


Auditors

Ernst & Young

EY Building, 2 Takutai Square

Britomart

Auckland 1010

New Zealand


Registry

Link Market Services Securities Registrar

Level 11, Deloitte Centre

80 Queen Street Auckland 1010


www.linkmarketservices.co.nz

Phone:(09) 375 5998

Email: enquiries@linkmarketservices.co.nz


Legal advisors

DLA Piper New Zealand

50-64 Customhouse Quay

Wellington 6140

New Zealand

www.dlapiper.com/en/newzealand/






Third Age Health Services Ltd
P O Box 303 387, North Harbour

Auckland 0751

thirdagehealth.co.nz

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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