Full Year Results to March 2024

Market Announcement
29 May 2024
PROMISIA FY24 RESULTS
Positive second half earnings and operational momentum following embedding of new leadership
team
Promisia Healthcare Limited (NZX: PHL) has released its unaudited, preliminary results for the year ended
31 March 2024 (FY24), with the positive impact and momentum being created by the new leadership
team evident in the stronger second half performance.
FY24 Results Summary:
• 10% year on year increase in operating revenue, up to $26.3m
• Underlying EBITDAF
1
of $3.8m, down 8% year on year
• Net profit after tax of $1.6m, up 236% year on year
• 18% increase in total assets to $84.3m
• 6% improvement in debt position as at 31 March, down to $29.2m, undrawn facilities and cash of
$0.5m
• 37% increase in Net Tangible Assets per share to 0.126 cents
Promisia continues to make good progress on its four strategic pathways – to build a stronger business,
maximise occupancy, create diverse revenue streams, and expand its network.
Chair of Promisia, Rhonda Sherriff, said: “The last year has been an important one for our business, as we
continued to build on the work that has been done over the preceding years to create a strong
foundation for growth. In particular, we saw positive traction in the second half of the year, with the new
leadership team at the helm.”
Operating revenue was up 10% year on year, driven by increased government-funded bed rates from 1
July 2023, and an increase in deferred management fees from villa sales. Operating expenses were 8%
higher, in an environment of inflationary pressure.
Underlying EBITDAF, which is a key metric for the company, significantly improved in 2H 2024, and was
up 27% on the first half. Year on year, underlying EBITDAF was down 8% to $3.8m, reflecting one-off
costs incurred during the leadership transition period.
The company reported a net profit after tax of $1.6 million for the year ending 31 March 2024, an
increase of $0.9 million year on year. There was a further fair value increase to properties, not classed as
investment properties, of $3.1 million bringing comprehensive income for the year to $4.8 million.
Following the rebuilding of the finance team in Q2 FY24, excellent progress has been made to strengthen
Promisia’s financial footing, with a focus on lowering debt, enhancing cashflow and improved reporting.
Of note, has been the successful extension of Promisia’s banking facilities with improved terms, which
enabled the repayment of all second-tier lending on the Aldwins Road land acquisitions in 2023 and
reduced interest costs.
At 31 March 2024, total assets increased by 18% to $84.3m, reflecting the completion of the Ranfurly
Manor Village expansion and subsequent recognition of villas following the successful sale of newly
created occupational rights agreements. In addition, valuations for the Group’s four facilities increased
13% overall. As a result, Net Tangible Assets per share increased by 37% to 0.126 cents.


1
Underlying EBITDAF is EBITDAF excluding transactions considered to be non-trading in nature or size. Excluding these transactions from
normalised earnings can assist users in forming a view of the underlying performance of the Group. Non-trading adjustments of $0.1m are
included in the FY24 results.

Increasing Strength and Performance
Group General Manager, Karen Lake, commented: “While the first half of the year was a time of
transition as new leadership was recruited, the second six months was an intense period of activity. Much
of this was carried out behind the scenes, as financial and operating processes and systems were
improved and efficiencies enhanced. We have made excellent progress getting the fundamentals in
place, putting us in a strong position to support Promisia’s future growth.”
Investment in increased sales resource has seen all new villas at Ranfurly Manor now sold or occupied. In
addition, the care offering at Aldwins House has recently been extended with certification for Young
Person Disability services for 40 of the 144 beds. Promisia is also looking at ways to respond to the
national demand for more specialist dementia care services.
Aged care funding remains challenging, with cost inflation and continuing wage competition for
registered nurses from the public sector. Promisia offers a competitive rate to its registered nurse
workforce and finds that many of them prefer the culture and environment of working in a Promisia
facility.
To ensure the sustainability of its care service in an environment of rising costs, continuing wage
competition and capped funding, Promisia continues to strategically position itself to generate a greater
mix of revenue from private payment for premium care suites and independent living units.
Growth and Outlook for FY25
Promisia continues to identify and assess opportunities to expand its network through the acquisition of
greenfield sites or existing facilities, with several potential acquisitions currently in the final stage of due
diligence.
Rhonda Sherriff said: “During FY24, we established a strong foundation for our business. Over the next
year, we will continue to strengthen our business platform, while investing in growth. We remain
committed to our strategic objectives which will build value for our shareholders. The work already done
this year and the strong focus on occupancy, quality of care and financial rigour, gives the board and
management confidence that continued momentum will lead to double digit growth in operation
earnings in the financial year ahead to March 2025.”
ENDS

Authority for this announcement: Rhonda Sherriff, Chair, Promisia Healthcare Limited
For more information, please contact:
Francisco Rodriguez Ferrere, General Manager – Finance, Promisia Healthcare Limited
Phone: +64 21 245 1801 or email: Francisco.rf@promisia.co.nz


About Promisia Healthcare
Promisia is a New Zealand based aged care and retirement living provider, with a focus on delivering quality personalised
care. Our aim is to be the aged care provider of choice in our communities. Our facilities are located in well-established and
well serviced towns and metropolitan areas. Our goal is to profitably grow our business in a sustainable manner, delivering
quality care to our residents, peace of mind to their families and whanau, and excellent value to our villages, community
and shareholders. Promisia is listed on the NZX (NZX: PHL). www.promisia.com

---

Promisia Healthcare Limited and subsidiaries






Preliminary Financial Statements
For the year ended 31 March 2024

PROMISIA HEALTHCARE LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
29,93423,881
Other comprehensive income
20242023
$ '000$ '000
Revenue and other income
Revenue from contracts with customers
25,51823,465
Gain on signing new occupancy right agreement775369
Fair value gain on investment property3,64147
Items that will not be reclassified subsequently to profit and loss
Revaluation of property, net of tax3,116667
Earnings per share (cents per share)
Basic and diluted earnings per share 0.0076 0.0032
Less: expenses
Administration expenses(3,708)(2,746)
Operating expenses(18,946)(17,553)
Depreciation expense(802)(838)
Borrowing costs(2,686)(2,281)
Impairment(194)-
(26,336)(23,418)
Profit before income tax expense3,598463
Income tax (expense) / benefit(1,963)229
Profit for the year1,635692
Total comprehensive income
4,7511,359

PROMISIA HEALTHCARE LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
Assets
Cash and cash equivalents1182,059
Receivables1,3411,435
Current tax assets66
Other assets549537
Property, plant and equipment21,31917,910
Investment properties61,01249,320
Deferred tax assets-494
Total assets84,34571,761
20242023
$ '000$ '000
Net assets
24,88020,088
Total equity
24,880 20,088
Net tangible asset backing per share (cents) 0.126 0.092
Equity
Share capital77,46777,426
Reserves3,066(50)
Accumulated losses(55,653) (57,288)
Liabilities
Payables3,759 3,870
Revenue received in advance2,2881,472
Occupancy rights agreements22,01215,459
Borrowings29,15530,872
Deferred tax liabilities2,251-
Total liabilities59,465 51,673

PROMISIA HEALTHCARE LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
equityReserves
Accumulated
lossesTotal equity
$ '000$ '000$ '000$ '000
Consolidated
Balance as at 1 April 2022
77,276(717)(57,980)18,579
Other comprehensive income for
the year-667-667
Transactions with owners in their
capacity as owners:
Total transactions with owners in
their capacity as owners150--150
Balance as at 1 April 2023
Profit for the year--1,6351,635
Other comprehensive income for
the year-3,116-3,116
Total comprehensive income for
the year-3,1161,6354,751
Transactions with owners in their
capacity as owners:
Total transactions with owners in
their capacity as owners41--41
Contributed
Contributions150--150
Contributions41--41
Profit for the year--692692
Total comprehensive income for
the year-6676921,359
Balance as at 31 March 2024
77,4673,066(55,653)24,880
Balance as at 31 March 2023
77,426(50)(57,288)20,088
77,426(50)(57,288)20,088

PROMISIA HEALTHCARE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
Cash flow from operating activities
Receipts from residents for care fees and services24,37123,533
Receipts of residents' loans from new sales10,4756,881
Payments to suppliers and employees(22,985)(19,796)
Repayments of residents' loans(1,798)(1,263)
Interest paid(2,573)(2,281)
Net cash used in investing activities(7,601)(21,144)
Cash flow from financing activities
Net (repayment of) / proceeds from borrowings(1,830)13,718
Net cash (used in) / provided by financing activities(1,830)13,718
Reconciliation of cash and cash equivalents
Cash at beginning of the financial year2,0592,411
Net decrease in cash held(1,941)(352)
Cash at end of financial year
1182,059
Net cash provided by operating activities7,4907,074
20242023
$ '000$ '000
Cash flow from investing activities
Payment for property, plant and equipment(325)(13,886)
Purchase of investment property (7,276)(6,733)
Acquisition of Aldwins Retirement Village Ltd-(525)

---

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


Results for announcement to the market
Name of issuer Promisia Healthcare Limited
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 12 months to 31 March 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$29,934 25%
Total Revenue $29,934 25%
Net profit/(loss) from
continuing operations
$1,635 136%
Total net profit/(loss) $1,635 136%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend for FY24.
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.00126 $0.00092
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
A detailed results commentary accompanies this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Rhonda Sherriff, Chair
Contact person for this
announcement
Francisco Rodriguez Ferrere, General Manager Finance
Contact phone number 021 245 1801
Contact email address Francisco.rf@promisia.co.nz
Date of release through MAP

29 May 2024

Unaudited financial statements accompany this announcement.