Third Age Half Year Results

Third Age Health delivers 1H24 Underlying NPATA
1
of $694k up 70%
and 91% on 1H23 and 2H23 respectively.
1H24 Business Highlights - Unaudited Financial Performance

• The business has continued overall value growth with an additional 8 ARC facilities on-
boarded and serviced through 1H24. Rate reviews with clients in line with market changes,
funding changes from govt. and further operating efficiencies have contributed to
improvements in our half year earnings results.
• TAH launched an ongoing campaign program promoting further ‘word of mouth’ referral to
prospective practitioners during 1H24. This has started to yield some results however the
market remains very tight on practitioner resources.
• This update being a 1H24 results announcement we’re also pleased to report that our
underlying NPATA of $694k is up 70% on the 1H23.
• 64 ARC facilities contracted at the end of 1H24:
o The number of ARC patients we provide care to has increased by 22% in 1H24 (to
4,152 residents) compared to the PCP
2
; 11.8% of total ARC population across NZ
currently supported by TAH
3
.
o Grew our combined enrolled patient population across both ARC and general
practice for 1H24 by 72% when compared to PCP.
• Cost savings identified of circa $250k pa, in order to re-calibrate the business, have now
largely been completed with impact from Q3 onwards.
• TAH has adopted Kaizen, as an ongoing process and productivity improvement program, and
as a result of key improvements in our 1
st
6 months of program work, we won a top 3 finalist
award in the inaugural NZ Kaizen awards early Sept.
• Our general practice network performance continues to be a key focus. We expect
improvements to be delivered on positive earnings over the 2H of the year.
• We paid a further $57k of debt as of 30 September making our total debt repayment for the
1H24 $733k.
• Clinical Team (Practitioners and other health professionals): We ended 1H24 with 73 clinical
team members up 28 (78% increase) compared to 1H23.
• 1H24 vs 1H23 revenue excluding acquired revenue has increased by $1.2m – 26%

1H24 Financial Highlights (Unaudited)
• Group revenue up 60% over 1H23 to $7,341k and 7% over 2H23 (1H23: $4,578k, 2H23:
$6,889k)
• Revenue from ARC core business up 51% over 1H23 to $2,720k and 26% over 2H23 (1H23:
$1,801k, 2H23 $2,153k).
• Organic group revenue up 26% over 1H23 to $5,769k (1H23: $4,579)

1
Underlying NPATA is adjusted for (i) non-cash amortisation charges arising as a result of purchase accounting rules (ii) non-
recurring provision related to the TADH loan and (iii) non-cash debt revaluation arising as a result of accounting rules post a
loan restructure. The loan was restructured during FY23 to fix interest rates to protect against ongoing increases in rates.
2
PCP refers to prior comparable period i.e. 1H23.
3
NZACA ARC Industry Profile 2021-22 https://berl.co.nz/our-mahi/aged-residential-care-industry-profile-2021-22

• Underlying NPBTA
4
up 65% over 1H23 at $906k and 30% over 2H23 (1H23: $549k. 2H23:
$694k)
• Underlying NPATA (adjusted for unaudited tax calculation) up 70% over 1H23 to $694k and
91% over 2H23 (1H23: $408k, 2H23: $363k)
• Statutory NPAT (adjusted for unaudited tax calculation) up 66% over 1H23 to $537k and
515% over 2H23 (1H23: $324k, 2H23: $87K)
Financial Highlights (unaudited) $'000
1H24 1H23 1H
change
2H23 2H
change`
Revenue 7,341 4,578 +60.3% 6,889 +6.6%
Underlying EBIT 1,096 597 +83.5% 656 +67.0%
EBIT Margin 14.9% 13.0% +1.9% 9.5% +5.4%
Underlying NPBTA 906 549 +65.0% 694 +30.4%
Underlying NPBTA% 12.3% 12.0% +0.3% 10.1% +2.2%
Underlying NPATA 694 408 +70.1% 363 +91.2%
Underlying NPATA% 9.5% 8.9% +0.6% 5.3% +4.2%




Statutory NPAT 537 324 +65.7% 87 +515.3%
Statutory NPAT%
7.3% 7.1% +0.2% 1.3% +6.0%
Ordinary dividends per share (cents)
3.96 2.45 +61.6 2.58 +53.5
Return on Equity (TTM)
30.2% 30.3% -0.1% 3.0% +27.2%
Return on Capital Employed (TTM) 19.9% 11.7% +8.2% 14.0% +5.9%


Dividend Declaration
We are pleased to announce an 2Q fully imputed dividend per share of 2.34 cents, in line with our
dividend policy. Combined with the dividend of 1.62 cents paid for 1Q this takes our total dividend
declared for the 1H24 to 3.96 cents.
The board of directors of Third Age Health Services Limited has approved the release of this
document to the market.

About Third Age Health (NZX:TAH)
Third Age Health is New Zealand’s only specialised provider of general practice health care services
for older people 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 60
aged care facilities throughout New Zealand, Third Age Health owns several general practices
providing quality primary healthcare to people of all ages.
www.thirdagehealth.co.nz

4
Underlying NPBTA is adjusted for (i) non-cash amortisation charges arising as a result of purchase accounting rules (ii) non-
recurring provision related to the TADH loan and (iii) non-cash debt revaluation arising as a result of accounting rules post a
loan restructure.

---

INTERIM REPORT
For the six months ended
30 September 2023

John Fernandes
Chairman
27 October 2023
On behalf of the Board and management of Third Age
Health, I am pleased to present the Third Age Health
Services Limited Interim Report for the six months
ended 30 September 2023.
CONTENTS
Chairman and CEO report
Interim financial statements
Notes to financial statements
3 - 5
8 - 11
12 - 21

NZX Announcement
3

27 October 2023
Primary care provider, Third Age Health Services (NZX: TAH), has today reported its unaudited results
for the six months to 30 September 2023 (1H24).
During the first half of the financial year, we continued our delivery on focus areas; continuous
scalable growth across our Aged Care business, stabilising our general practice network, and
innovating in the independent village area by opening up a new on-site general practice service in
Auckland.
We have successfully delivered on various changes in our business with further process
improvements to make. The introduction of Kaizen (aka Lean) has helped improve ways of working for
our teams and improved our ability to on-board new clients and practitioners. We were a top three
finalist at the NZ Kaizen awards in early September, and we look forward to Kaizen becoming an
integral part of our operational DNA.
Financial summary
Our core business of providing primary medical services into Aged Residential Care (ARC) settings
saw strong organic growth with enrolled patients of 4,152, up 21.6% against the number of patients
during the prior comparative period (pcp
1
) as at 30 September 2023, and up 12.7% compared with
the number of aged residential care patients enrolled with us at 31 March 2023. This increase drove
organic revenue growth for the period of 26% on pcp to $3.8 million.
Strengthening key relationships with our current and potential aged residential care customers has
helped us secure a further four facilities across NZ to a total of 64 ARC facilities at the end of
September 2023.
General practices which we owned during the first half of the last financial year (1H23) maintained
patient numbers during the first half of this financial year (1H24) with enrolled patients at 30
September 2023 of 11,125 up 1.5% on pcp, and 1.7% compared to 31 March 2023. General practice
revenue in total of $3.5 million is up 98.6% on pcp. Improving the earnings and return on capital
generated by the practices we acquired in Auckland, which to date has been unsatisfactory, is a
significant focus.

Six months to
30 September 2023
Six months to
30 September 2022

(Unaudited) (Unaudited)

$000 $000
Net profit after tax
537 324
Add back amortisation of intangibles
157 84
Underlying NPATA
694 408
Underlying NPATA
2
which we believe better reflects underlying earnings at $694k was up 70%
on pcp.

1
PCP refers to prior comparable period i.e. 1H23.
2
Underlying NPATA is a non-IFRS measure adjusted for (i) non-cash amortisation charges arising as a result of purchase
accounting rules (ii) nonrecurring provision related to the TADH loan and (iii) non-cash debt revaluation arising as a result of
accounting rules post a loan restructure.

NZX Announcement
4


Clinical Workforce
While ongoing clinician shortages has impacted our ability to grow in some regions where we have a
backlog of demand, we are continuing to focus on our own Nurse Practitioner recruitment and
retention model alongside Doctor recruitment. We recently launched an ongoing campaign program
promoting further ‘word of mouth’ referral to prospective practitioners. This has started to yield
results.
Clinical Team (Practitioners and other health professionals): We ended the first half with 73 clinical
team members up 19 (35% increase) compared to 31 March 2023.
We are also innovating to make working for us easier for our practitioners to help in the retention
and recruitment of future practitioners. Our new Aged Care Digital Platform which will be piloted
during Q3 is expected over time to assist practitioners’ workflow, improve practitioner retention, and
improve data flow between Third Age Health and ARC facilities – making us a more attractive option.
Performance improvement
Rate reviews has been a focus with our customers in the first half of the financial year, during this
period, we concluded a number of customer rate changes.
Cost savings have been identified of circa $250k pa, in order to recalibrate the business. These have
now largely been implemented, with the expected impact to be realised during the second half.
Outlook
Despite short to medium term challenges, the longer-term demand outlook for the business remains
positive as an aging population will continue to drive increased demand for quality primary care
medical services. Our business is well-positioned to capture additional market share due in part to the
very strong relationships with existing customers, who themselves have significant growth plans, and
establishing relationships with potential new customers.
We expect financial performance in the second half of this financial year will be ahead of the results
delivered during the first half.
Our long-term goal remains to maximise both returns on capital and the average annual rate of
increase in intrinsic value per share.

NZX Announcement
5


Quarterly Dividend
In line with our dividend policy the Board has declared a fully imputed dividend of 2.34 cents per
share for the second quarter resulting in a total of 3.96 cents per share of dividends declared in the
first half, an increase of 54% on pcp.



John Fernandes Tony Wai
Chairman CEO
[ENDS]
For more information, please contact:
Denice Bennett, Chief Financial Officer
Third Age Health
+64 21 765 303

FINANCIAL STATEMENTS

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Financial Statements
For the six months ended 30 September 2023

7


Approval and issue of Condensed Consolidated Financial Statements

The Directors are pleased to present the Condensed Consolidated Financial Statements of Third Age Health
Services Limited and its subsidiaries (the “Group’) for the six-months ended 30 September 2023.
The Board of Directors of the Group authorised the Condensed Consolidated Financial Statements, set out on
pages 9 to 21 for issue on 27 October 2023.





John Fernandes
Independent Chairman
Wayne Williams
Independent Director and Audit Committee Chair

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Statement of
Comprehensive Income
As at 30 September 2023



8


30 September 2023 30 September 2022

(Unaudited) (Unaudited)

Notes
$000 $000
Revenue 3

7,341 4,578
Cost of services 4 (3,627) (2,098)
Gross profit

3,714 2,480

Other income


51 8

Employees and contractors 6 (1,688) (1,139)
Professional and consulting fees 7 (238) (280)
Other expenses 8 (539) (374)
Operational expenses

(2,465) (1,793)


EBITDA

1,300 695

Depreciation 14 (203) (98)
Amortisation of intangibles

(158) (84)
Finance costs 9 (190) (48)



Profit before income tax

749 465

Income tax expense

(212) (141)

Profit for the period

537 324

Other comprehensive income

- -

Total comprehensive income for the period

537 324

Profit and total comprehensive income attributable to:

Shareholders of the parent

544 324
Non-controlling interests

(7) -

Profit for the period

537 324

Earnings per share (note 11)

Basic earnings per share (cents)

5.45 3.26
Diluted earnings per share (cents)

5.45 3.24




These financial statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Statement of
Financial Position
As at 30 September 2023



9


30 September 2023 31 March 2023

(Unaudited) (Audited)
Notes $000 $000
Current assets

Cash and cash equivalents

825 1,355
Trade and other receivables 12 1,371 1,117
Loan receivable 13 - 80
Total current assets

2,196 2,552


Non-current assets

Property, plant and equipment

167 154
Right-of-use-assets 14 2,782 2,967
Intangible assets

4,193 4,351
Trade and other receivables 12 20 20
Total non-current assets

7,162 7,492


Total assets

9,358 10,044


Current liabilities

Trade and other payables

1,552 1,395
Current tax liabilities

103 94
Bank Loan - current

208 375
Lease liabilities 14 321 283
Total current liabilities

2,184 2,147

Non current liabilities

Trade and other payables

1 2
Lease liabilities 14 2,578 2,755
Deferred tax liability

529 630
Bank Loan

1,400 1,966
Total non current liabilities

4,508 5,353

Total liabilities

6,692 7,500

Net assets

2,666 2,544
Equity

Share capital 17 596 596
Share based payment reserve

651 645
Retained earnings

1,420 1,303
Equity attributable to the Group

2,666 2,544


Shareholders of the parent

2,658 2,549
Non-Controlling Interests

8
(5)

Total Equity

2,666 2,544


These financial statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 September 2023


10


Share
Capital
Share
Based
Payments
Reserve
Retained
earnings
Non-
controlling
Interest Total

Notes $000 $000 $000 $000 $000
Balance at 1 April 2022 (Audited)

515 643 1,538 - 2,696

Profit for the year

- - 324 - 324
Total comprehensive income for the year

- - 324 - 324

Shares issued

4 - - - 4
Dividend

- - (403) - (403)
Share based payments

- 5 - - 5
Balance at 30 September 2022 (unaudited)

519 648 1,459 - 2,626

Balance at 1 April 2023 (Audited)

596 645 1,330 (27) 2,544

Profit for the year

- - 544 (7) 537
Total comprehensive income for the year

- - 544 (7) 537

Shares issued - - - - -
Dividend - - (420) - (420)
Share based payments - 6 - - 6
Balance at 30 September 2023 (unaudited)

596 651 1,453 (34) 2,666



















These financial statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 September 2023


11


30 September 2023 30 September 2022

(Unaudited) (Unaudited)

Notes $000 $000
Cash flows from operating activities

Receipts from operating activities

7,208 4,321
Payments to suppliers and employees

(5,948) (3,721)
Interest received

9 -
Interest paid

(190) (44)
Income taxes paid

(285) (260)
Net cash flows from operating activities 10 794 296



Cash flows from investing activities



Payments purchase for property, plant and equipment

(32) (18)
Acquisition of general practices, net of cash acquired

- (594)
Net cash flows used in investing activities

(32) (612)



Cash flows from financing activities



Proceeds from issuing shares


- 4
Principal elements of loan repayments

(733) -
Payment of lease liabilities 14 (139) (68)
Dividend paid 18 (420) (403)
Bank Loan

- 593
Net cash flows from financing activities

(1,292) 126


Net increase in cash and cash equivalents

(530) (190)



Cash and cash equivalents at the beginning of the
period

1,355 1124
Cash and cash equivalents at the end of the period

825 934










These financial statements are to be read in conjunction with the accompanying notes.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


12

1. Reporting Entity

The consolidated interim financial statements for Third Age Health Services Limited and its subsidiaries (the
"Group") are for the economic entity comprising Third Age Health Services Limited (the “Company” or
"Parent") and its subsidiaries. The Parent is incorporated and domiciled in New Zealand and registered under
the Companies Act 1993 and is a Financial Market Conduct (FMC) entity for the purposes of the Financial
Reporting Act 2013 and the Financial Markets Conduct Act 2013. The Financial Statements have been prepared
in accordance with each of these Acts. The Company is listed on the NZX Main Board ("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 15. These condensed consolidated interim financial
statements are for the 6 months ended 30 September 2023. The Group’s current operations do not follow a
seasonal or cyclical pattern.


2. Significant Accounting Policies

2.1. Statement of compliance and reporting framework

These unaudited condensed consolidated interim financial statements have been prepared in accordance with
New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with the New Zealand
equivalent to International Accounting Standard 34 ("NZ IAS 34") Interim Financial Reporting. For the purposes
of complying with NZ GAAP, the Group is a for-profit entity.

The interim financial statements do not include all of the information required for full year financial
statements and should be read in conjunction with the Company's annual financial report for the year ended
31 March 2023. Consistent accounting policies with the full financial statements for the year ended 31 March
2023 have been applied in preparation of these interim financial statements.

2.2. Basis of preparation

The financial statements for the six months ended 30 September 2023 and the comparative six months ended
30 September 2022 are unaudited.


3. Revenue

Revenues from agreements and contracts with customers and public health organisations (PHOs)




30 September 2023 30 September 2022


(Unaudited) (Unaudited)


$000 $000
Capitation revenue

Aged medical care services

1,060 884
General practice medical services

1,943 1,065

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


13

Consultation revenue
Aged medical care services

2,720 1,800
General practice medical services

1,111 502


Other revenue

Aged medical care services

35 119
General practice medical services

472 208


Total revenue from contracts with customers

7,341 4,578


4. Cost of services

Cost of services line include direct costs of doctors, nurses and medical supplies as well as other direct costs.

5. Segment Information

Products and services from which reportable segments derive their revenue

The Group's reportable segments are as follows:
• Aged medical care services: the provision of medical care services to the aged care sector,
• General practice medical services: the provision of general medical care services to the community.

Segment revenues and profit before tax

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



30 September 2023 30 September 2022
Segment revenue

(Unaudited) (Unaudited)

$000 $000
Aged medical care services incl support functions

3,815 2,803
General practice medical services

3,526 1,775
Total

7,341 4,578


Segment profit before tax
30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Aged medical care services
635 412
General practice medical services
112 55
Total
748 467


Segment profit before tax for the General practice medical services includes $85,349 (2022: 17,595) of finance
costs from the ANZ loan facility (note 16). This cost is allocated to this segment, as the loan facility was utilised
to fund the acquisition of general practices.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


14

Segment profit includes the following items:

For the year ended 30 September 2023

Aged care General practice


medical services medical services


$000 $000
EBITDA

723 577
Depreciation

(1) (202)
Amortisation of intangibles

- (158)
Interest expense on leases

- (105)
Interest on ANZ Loan

- (85)
Profit before tax

722 27


Income tax expense

(200)
(12)
Profit for the period

522 15


For the year ended 30 September 2022 Aged care General practice

medical services medical services

$000 $000
EBITDA 412 283
Depreciation (2) (88)
Amortisation of intangibles - (92)
Interest expense on leases - (30)
Interest on ANZ Loan - (18)
Profit before tax 410 55
Income tax expense (115) (26)
Profit for the period 295 29

Depreciation and Finance costs were revised to provide a more detailed presentation in the comparative
analysis.


Segment assets and liabilities


30 September 2023
31 March 2023
Segment assets

(Unaudited)
(Audited)


$000 $000
Aged medical care services incl support functions

2,292 2,445
General practice medical services

8,394 8,784
Total segment assets

10,686 11,229

Intercompany elimination

(1,328) (1,185)
Total segment assets

9,358 10,044



30 September 2023
31 March 2023
Segment liabilities

(Unaudited)
(Audited)


$000 $000
Aged medical care services incl support functions

820 1,048
General practice medical services

7,200 7,637

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


15

Total segment liabilities

8,020 8,685


Intercompany elimination

(1,328) (1,185)
Total segment liabilities

6,692 7,500

6. Employees and contractors



30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Salaries and wages

1,378
991
Short term incentives

105
20
Defined contribution (KiwiSaver)

90
32
Share based payments expense

-
4
Employee benefit expense

1,573
1,047



Contractors

115
92


1,688 1,139

Total employee costs are split between costs associated with operations that existed in the prior period and
new acquisitions since October 2022.


30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Existing operations

1,253 908
New acquired subsidiaries

435 231

1,688 1,139


7. Professional and consulting fees

30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Fees payable to auditor
47 46
Accounting and taxation services
20 22
Legal expenses
14 74
Directors' fees
90 78
Listing and share registry costs
26 26
Other consultancy costs
41 34

238 280

Legal fees include $0 (2022: $49,900) of fees in respect of work undertaken on acquisitions.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


16

8. Other expenses

30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Technology / IT 278 167
Marketing & PR 16 -
Medical Supplies - 61
Travel & Entertainment 13 27
Professional operational services 56 43
Office & General 176 76

539 374

Medical supplies are reclassified as Cost of services on the Statement of Comprehensive Income. Total other
expenses are split between costs associated with operations that existed in the prior period and new
acquisitions since October 2022.



30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Existing operations
362 240
New acquired subsidiaries
177 134

539 374

The increase in costs for existing operations is due to essential upgrades to computer and IT platforms, travel
to support the nationwide growth of ARC and costs associated with recruitment of clinical resources.


9. Finance costs

30 September 2023 30 September 2022


(Unaudited) (Unaudited)


$000 $000
Interest expense on leases

105 30
Fees and Interest on ANZ loan facility

85 18


190 48


10. Reconciliation of profit before tax to net cash from operating activities


30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Profit before income tax 749 465

Adjustments to reconcile profit before tax to net cash
flows:

Depreciation and amortisation 203 98
Amortisation of intangibles 158 84
Share based payments expense 6 4


Working capital adjustments:

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


17

Trade and other receivables (254) (261)
Trade and other payables 137 166

Loan receivable repayment 80 -

1,079 556
Income tax paid (285) (260)

Net cash from operating activities 794 296


11. Earnings per share

Basic and diluted earnings per share

30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Net profit attributable to the ordinary shareholders of the
Group
537 324
Earnings used in the calculation of basic earnings per share
from continuing operations
537 324

Weighted average number of shares used as the denominator

Shares Shares

000's 000's
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings per share
9,993 9,952

Adjustments for calculation of diluted earnings per share:


Employee share options - 34

Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings per share
9,993 9,985


From continuing operations:
Cents per share Cents per share
Basic earnings per share

5.45

3.26
Diluted earnings per share 5.45 3.24

Number of ordinary shares excludes shares held by the Third Age Employee Purchase Plan.


12. Trade and other receivables

Trade and other receivables

30 September 2023 31 March 2023

(Unaudited) (Audited)


$000 $000
Trade receivables

1,129 925
Prepayments and other receivables

242 192


1,371 1,117
Trade and other receivables (non-current)

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


18


Deposit with NZX 20 20

20 20


13. Loan receivable

At year end 31 March 2023, an impairment charge of $233k was recorded in the accounts. During the current
period, the liquidators of TADH made a distribution of $80k, which has been allocated to the loan receivable.


30 September 2023 31 March 2023

(Unaudited) (Audited)

$000 $000
Current - 80

- 80


14. Right of use assets and leases liabilities

The following tables show the movement in right of use assets and lease liabilities.

Movements in the amounts recognised in the statement of financial position as at 30 September 2023 and the
prior corresponding period:

Right-of-use-asset

30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Opening balance at beginning of period (Audited)
2,967
1,093
Additions and reassessments
- 170
Depreciation
(186) (88)
Closing balance
2,782 1,175

Lease liabilities

30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000 $000
Balance at beginning of period (Audited)
3,038
1,088
Additions and reassessments
- 170
Interest
105 30
Repayments
(244) (98)
Closing balance
2,899
1,190

Current
321 143
Non-current
2,578 1,047

2,899
1,190

Amounts recognised in the statement of profit or loss:

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


19


30 September 2023 30 September 2022

(Unaudited) (Unaudited)

$000
$000
Depreciation of right-of-use assets property
186 88
Interest expense (included in finance cost)
105 30

The total cash outflow for leases in the 6-month period ended September 2023 was $243,465 (2022: $98,017).


15. Business combinations

Group composition

The parent entity is Third Age Health Services Limited, a company incorporated in New Zealand. The Group
had the following subsidiaries as of 30 September 2023. The current reporting period includes results from
new subsidiary that was not part of the group for the same period last year.

Subsidiary name Country of
incorporation
30 September 2023
Ownership
31 March 2023
Ownership
Hawkes Bay Wellness Centre Limited New Zealand
100% 100%
Belmont Medical Centre Limited New Zealand
100% 100%
Ponsonby Medical (Third Age Health) Limited New Zealand
100% 100%
Devonport Family Medicine (Third Age Health) Limited
EastMed St Heliers Limited (acquired 3 October 2022)
New Zealand
New Zealand
100%
67%
100%
67%
Third Age Employee Share Purchase Plan Trust New Zealand
100% 100%

The Company holds a 10% share in Phoenix Health Hub and is treated as an investment, recorded at fair value
each Balance Date. As per shareholders agreement, the Company has not invested any funds. As of 30
September 2023, the fair value was nil. Phoenix Health Hub Limited is an investment in a Christchurch based
clinic to realise a new integrated general practice and allied health clinic to support unmet health needs.


16. Bank loan

During the period ended 30 September 2023, a total of $732,600 was repaid to reduce the principal amount.
Total fees and interest charged on the loan in the period was $85,349 (2022: 17,595). Security for the loan is a
first ranking security over the Company and the Group which includes cross guarantees and indemnity of debt.
TAH have complied with banking covenants for the period ending 30 September 2023.

17. Share capital

All ordinary shares rank equally with one vote attached to each fully paid share. Total issued share capital is
10,004,149 ordinary shares (2023: 10,004,149).




18. Dividend paid during the period

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2023


20


Dividends paid during the period ended 30 September 2023:
Cents per share $000
Final dividend for the year ended 31 March 2023
2.58
258
Interim dividend (Quarter 1)
1.62
162


664

Dividends paid during the period ended 30 September 2022:
Cents per share $000
Final dividend for the year ended 31 March 2022 4.05 403


19. Related party transactions

Transactions with related parties

Name of related party Nature of relationship Transaction
30 September 2023 30 September 2022

(Unaudited) (Unaudited)
$000 $000
John Fernandes Director & Shareholder Director fees 31 26
Bevan Walsh Director & Shareholder Director fees 18 12
Norah Barlow Director & Shareholder Director fees 19 19
Wayne Williams Director Director fees 23 21


Directors’ fees for John Fernandes, Norah Barlow and Wayne Williams for the period ended 30 September
2023 also include fees as members of the Audit Committee. Wayne Williams, Chairman of the Audit
Committee, received a fee of $5,000, John Fernandes received a fee of $1,250 and Norah Barlow a fee of
$1,250.


20. Subsequent event

Interim dividend declared

Subsequent to the period end, the Board have declared a fully imputed interim dividend (Quarter 2) of 2.34
cents per share.

Third Age Health Services Ltd
P O Box 303 387, North Harbour
Auckland 0751
thirdagehealth.co.nz

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019

Results for announcement to the market
Name of issuer Third Age Health Services Limited
Reporting Period 6 months to 30 September 2023
Previous Reporting Period 6 months to 30 September 2022
Currency New Zealand Dollar
Amount ($000) Percentage change
Revenue from continuing
operations
$7,341 60.3%
Total Revenue $7,341 60.3%
Net profit from continuing
operations
$537 65.7%
Total net profit $537 65.7%
Interim Dividend
Amount per Quoted Equity
Security (net)
$0.02338853
Imputed amount per Quoted
Equity Security
$0.00909555
Record Date 8 November 2023
Dividend Payment Date 20 November 2023
Current period Prior comparable period
31 March 2023
Net tangible assets per
Quoted Equity Security
-$0.100 -$0.117
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For a detailed commentary on the performance for the period please refer to the
attachment market announcement and Interim Report.
The NTA is negative due to a large proportion of our assets being intangible assets
(44%), notably goodwill from acquisitions which are excluded in calculated tangible
assets. Further impacted by IFRS16 adjustments for RoU assets and lease liabilities
combined with a bank loan facility (see note 16 of the Interim Report) drawn to fund
acquisitions, increasing total liabilities. The movement in our NTA from 31 March 23
relates to principle repayments of the bank loan.
Authority for this announcement
Name of person

authorised
to make this announcement
Denice Bennett
Contact person for this
announcement
Denice Bennett
Contact phone number 021 765 303
Contact email address deniceb@thirdagehealth.co.nz
Date of release through MAP

27 October 2023

Unaudited financial statements accompany this announcement.