Third Age Health announces 1H NPAT up 115% to $1,154k

Results announcement
(for Equity Security issuer/Equity and Debt Security
issuer)
Updated as at June 2023

Results for announcement to the market
Name of issuer Third Age Health Services Limited
Reporting Period 6 months to 30 September 2024
Previous Reporting Period 6 months to 30 September 2023
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$9,413 28.2%
Total Revenue $9,413 28.2%
Net profit/(loss) from
continuing operations
$1,154 114.9%
Total net profit/(loss) $1,154 114.9%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.03547022
Imputed amount per Quoted
Equity Security
$0.01379397
Record Date 4 November 2024
Dividend Payment Date 15 November 2024
Current period
30 September 2024
Prior comparable period
30 September 2023
Net tangible assets per
Quoted Equity Security
-$0.076 -$0.100
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
(48%), 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 30 September
2023 relates to principal repayments of the bank loan and increased working capital.
Authority for this announcement
Name of person

authorised
to make this announcement
Geraldine Bromley
Contact person for this
announcement
Geraldine Bromley
Contact phone number 022 127 5598
Contact email address geraldineb@thirdagehealth.co.nz
Date of release through MAP

25 October 2024

Unaudited financial statements accompany this announcement.

---

INTERIM REPORT
For the six months ended
30 September 2024

John Fernandes
Chairman
25 October 2024
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 2024.
CONTENTS
Chairman and CEO report
Interim financial statements
Notes to financial statements
3 - 4
5 - 10
11 - 24

NZX Announcement

3

25 October 2024

Primary care provider, Third Age Health Services (NZX: TAH), has today reported its
unaudited results for the six months to 30 September 2024 (1H25).
At the outset of this year, we set out with ambitious plans, focusing on delighting customers,
expanding our care services and scaling operations. We’re pleased to report that our efforts
have translated into significant growth across key areas of our business in the first half of FY25.
Net Profit After Tax (NPAT) has increased by 115% to $1,154k, up from $537k in the same period
last year, and Underlying NPATA
1
grew by 96% year on year, reaching $1,361k. Overall gross
profit margin improved to 51.6% from 47.6% in the same period last year.
Our Hub Aged Care acquisition in April has already contributed to expanding our elder care
services in the Lower North Island. We now service 13 aged residential care facilities providing
care to 733 residents (patients) in this region.
Our relationship with current and potential aged residential care customers has been integral to
supporting the growth of our care facilities and enrolled patients. The total number of aged
residential care facilities we now service is 87 providing care to 5,278 residents up from 67
facilities providing care to 4,360 residents as of 31 March 2024.
The total number of patients we provide care to across aged residential care and our
community general practices has grown to 25,810 up from 24,969 as of 31 March 2024.
While our core elder care services business is performing well, we continue to make
investments in improving the quality and reach of services we provide. This includes
investments in digitisation, process improvements and additional resource.
A good example of an investment we’ve made in partnership with CHT is the Navigating
Wellness guidebook that we produced. Published in June 2024 it has been well received by
practitioners, patients and stakeholders across the wider healthcare community. 5,000
physical copies have been shared across the country and it is now becoming a widely used
resource.
The performance of our six community general practices has also significantly improved.
Refinements to the operating model have seen the implementation of team-based care, along
with several other productivity and service level improvements. Trials of AI tools to assist with
transcribing patient notes are also underway. Nevertheless, several of these practices are still
underperforming their potential and work to remediate this remains ongoing.


1
Underlying NPATA is adjusted for non-cash amortisation charges arising as a result of purchase accounting rules

NZX Announcement

4

Challenging Environment
The current landscape is as challenging as ever. While demand for our services continues to
grow, so does competition. We also face workforce shortages and ongoing funding limitations,
driven by tightening health budgets. While we believe the strategies we have implemented to
address these risks are promising, we continue to assess and refine them as part of our ongoing
risk management efforts to ensure we remain the provider of choice.
Capital Allocation
During the period we took on debt of $598k to fund the acquisition of Hub Aged Care, while
accelerating debt repayment of $729k resulting in net debt repayment of $131k. We also
initiated an on-market share buyback acquiring 1,050 shares at an average price of $2.02 per
share.
Going forward our capital allocation priorities remain unchanged – we will continue to prioritise
investments that better enable us to serve our customers. While returning capital to
shareholders through quarterly dividends in line with our dividend policy, we will
opportunistically repay debt or buy back shares based on market conditions. We continue to
actively seek out opportunities to make acquisitions of businesses that have similar
commercial characteristics to our core business and are casting the net wider than we
previously have.
Outlook

We are cautiously optimistic that performance in the second half of this financial year will be
ahead of the performance delivered during the first half.
Quarterly Dividend

The Board of Third Age Health Services Limited (NZX:TAH) has declared a fully imputed interim
dividend of 3.55 cents per share (cps) for Q2 FY25. This brings the total dividends declared for
the first half of FY25 to 6.83 cps up 72% vs the same period last year.




John Fernandes Tony Wai
Chairman CEO
[ENDS]
For more information, please contact:
Geraldine Bromley, Head of Finance
Third Age Health
+64 22 127 5598
Geraldineb@thirdagehealth.co.nz

FINANCIAL STATEMENTS

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Financial Statements
For the six months ended 30 September 2024
6
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 subsidiariesforthe six-monthsended 30 September 2024.
The Board of Directors of the Group authorised the Condensed Consolidated Financial Statements,set out on
pages7to 24for issue on 25October 2024.
John Fernandes
Chairman
Wayne Williams
Director and Audit CommitteeChair

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Statement of

Comprehensive Income
For the six months ended30 September 2024


7


30 September 2024 30 September 2023


(Unaudited) (Unaudited)

Notes
$000 $000
Revenue 4
9,413 7,341
Cost of services 5 (4,554) (3,841)
Gross profit

4,859 3,500




Other income

30 51




Employees and contractors 7 (1,673) (1,460)
Professional and consulting fees 8 (284) (238)
Other expenses 9 (679) (553)
Operational expenses

(2,636) (2,251)



EBITDA

2,253 1,300




Depreciation on right of use assets 14 (182) (185)
Depreciation on plant, property and equipment (18) (18)
Amortisation of intangibles

(207) (158)
Finance costs 10 (195) (190)



Profit before income tax

1,651 749




Income tax expense

(497) (212)




Profit for the period

1,154 537




Other comprehensive income

- -




Total comprehensive income for the period

1,154 537




Profit and total comprehensive income attributable to:



Shareholders of the parent

1,026 544
Non-controlling interests

128 (7)




Profit for the period

1,154 537




Earnings per share (note 12)



Basic earnings per share (cents)

10.25 5.45
Diluted earnings per share (cents)

10.25 5.45




These consolidated 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 2024


8



30 September 2024 31 March 2024


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


Cash and cash equivalents

1,661 1,695
Trade and other receivables 13 1,015 775
Other assets 168 81
Accrued revenue 249 319
Total current assets

3,093 2,870



Non-current assets


Property, plant and equipment

172 123
Right-of-use-assets 14 2,359 2,514
Intangible assets

5,137 4,191
Financial assets

20 20
Total non-current assets

7,688 6,848



Total assets

10,781 9,718
Current liabilities


Trade and other payables

1,947 1,594
Employee benefits 452 336
Current tax liabilities

196 346
Bank Loan

56 1,342
Lease liabilities 14 320 306
Total current liabilities

2,971 3,924



Non-current liabilities


Provisions 22 22
Bank loan 1,155 -
Other payables

1 1
Lease liabilities 14 2,263 2,399
Deferred tax liability

726 459
Total non-current liabilities

4,167 2,881



Total liabilities

7,138 6,805



Net assets

3,643 2,913
Equity


Share capital 17 594 596
Share based payment reserve

666 657
Retained earnings

2,122 1,704
Equity attributable to the Parent

3,382 2,957



Non-Controlling Interests (NCI)

261 (44)



Total Equity

3,643 2,913

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

Third Age Health Services Limited and subsidiaries
Condensed Statement of Changes in Equity
For the six months ended 30 September 2024


9


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

Notes $000 $000 $000 $000 $000
Balance at 1 April 2023 (Audited)

596 645 1,330 (27) 2,544


Profit for the period

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

- - 544 (7) 537


Dividend 18 - - (420) - (420)
Share based payments

- 6 - - 6
Balance at 30 September 2023 (unaudited)

596 651 1,453 (34) 2,666


Balance at 1 April 2024 (Audited)

596 657 1,704 (44) 2,913



Profit for the period

- - 1,026 128 1,154
Total comprehensive income for the period

- - 1,026 128 1,154



Dividend 18 - - (608) (29) (637)
Share based payments - 9 - - 9
NCI on acquisition - - - 206 206
Acquisition of treasury shares (2) - - - (2)
Balance at 30 September 2024 (unaudited)

594 666 2,122 261 3,643



















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

Third Age Health Services Limited and subsidiaries
Condensed Statement of Cash Flows
For the six months ended 30 September 2024

10




30 September 2024 30 September 2023


(Unaudited) (Unaudited)

Notes $000 $000
Cash flows from operating activities


Receipts from customers

9,344 7,208
Payments to suppliers and employees

(7,004) (5,948)
Interest received

22 9
Interest paid

(186) (190)
Income taxes paid

(643) (285)
Net cash flows from operating activities 11 1,533 794



Cash flows from investing activities


Payments for property, plant and equipment

(65) (32)
Investment in developing intangible assets (13) -
Payments for acquisition of subsidiaries

(571) -
Net cash flows used in investing activities

(649) (32)



Cash flows from financing activities


Payments for share buy-back (2) -
Proceeds from bank borrowing 598 -
Loan repayments on bank borrowing

(729) (733)
Payment of lease liabilities 14 (150) (139)
Dividend paid 18 (608) (420)
Dividend paid to NCI (27) -
Net cash flows (used in) / provided by financing
activities

(918) (1,292)



Net increase in cash and cash equivalents

(34) (530)



Cash and cash equivalents at the beginning of the
period

1,695 1,355

Cash and cash equivalents at the end of the period

1,661 825








These consolidated 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 2024


11

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 C
"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 2024. The Group 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 audited annual financial report for the year
ended 31 March 2024. Consistent accounting policies with the full financial statements for the year ended 31
March 2024 have been applied in preparation of these interim financial statements.


2.2. Basis of preparation

The consolidated interim financial statements for the six months ended 30 September 2024 and comparatives
for the six months ended 30 September 2023 are unaudited. The consolidated annual financial statements for
the year ended 31 March 2024 were audited and form the basis for the comparative figures for that period in
these statements.

The consolidated interim financial statements have been prepared in accordance with the going concern basis
of accounting, which assumes that the Group will be able to realise its assets and discharge its liabilities in the
normal course of business as they come due into the foreseeable future.

2.3. Use of accounting estimates and judgements

The preparation of the financial statements in conformity with NZ IAS 34 requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


12

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated interim financial statements are as follows:

Fair value of assets acquired in business combination
On 1 April 2024 Third Age Health Services Limited acquired a 70% share of Hub Aged Care Limited, a
Wellington based primary care provider to aged residential care facilities for a value of $0.7m. The
wing
to a proportion of the purchase price being deferred contingent consideration.

Carrying of value of intangible assets
The company has reviewed the carrying value of intangible assets allocated to each cash generating unit for
indications of significant impairment since the end of the most recent financial year being 31 March 2024. The
Company has noted no indications of impairment.

3.
Significant Events and Transactions


3.1 Acquisition of Hub Aged Care Limited

On 1 April 2024 Third Age Health Services Limited acquired a 70% share of Hub Aged Care Limited, a
Wellington based aged residential care provider for a value of $0.7m. Refer note 15.2 for further details.

4.
Revenue

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 claims from contracts like ACC and MOH (General medical, maternity and immunisation
claims) with customers are measured at the fair value of the consideration received or receivable and may be
reduced for rebates and other similar allowances.

Capitation revenue
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 in arrears.

Other revenue
Other revenue is made up of claims related to vaccinations and other claims recognised on a point in time
basis once the services have been given to the patient as well as interest revenue. Interest revenue is
recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the
effective interest rate, which is the rate that exactly discounts estimated future cash receipts.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


13




30 September 2024 30 September 2023


(Unaudited) (Unaudited)


$000 $000
Capitation revenue


Aged medical care services

1,495 1,060
General practice medical services

2,042 1,954



Consultation revenue


Aged medical care services

4,113 2,736
General practice medical services

1,389 1,308




Other revenue



Aged medical care services

85 19
General practice medical services

289 264




Total revenue from contracts with customers

9,413 7,341


5.
Cost of services

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



30 September 2024 30 September 2023


(Unaudited) (Unaudited)


$000 $000
Practitioners (GPs and nurses)

4,439 3,723
Medical supplies
115 118
Total cost of services

4,554 3,841

6.
Segment Information

Products and services from which reportable segments derive their revenue

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

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


14

Segment revenues and profit before tax

segment:




30 September 2024 30 September 2023
Segment revenue

(Unaudited) (Unaudited)


$000 $000
Aged medical care services

5,693 3,815
General practice medical services

3,720 3,526
Total for continuing operations

9,413 7,341


Segment profit before tax
30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000 $000
Aged medical care services
1,322 722
General practice medical services
329 27
Total for continuing operations
1,651 749


Segment profit includes the following items:

For the six months ended 30 September 2024

Aged care General practice


medical services medical services


$000 $000
EBITDA

1,396 857
Depreciation

(6) (194)
Amortisation of intangibles

(44) (163)
Interest expense on leases

- (96)
Interest on bank Loan

(24) (75)
Profit before tax

1,322 329



Income tax expense

(413)
(84)
Profit for the period

909 245

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


15


For the six months 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 bank Loan
- (85)
Profit before tax
722 27
Income tax expense
(200)
(12)
Profit for the period
522 15

EBITDA represents profit before tax excluding amounts for depreciation and amortisation expenses, interest
expenses and interest income.

Segment profit before tax for the General practice medical services in 2023 includes $85,349 of finance costs
from the ANZ loan facility (note 10). This cost is allocated to this segment, as the loan facility was utilised to
fund the acquisition of general practices.

Segment assets and liabilities



30 September 2024
31 March 2024
Segment assets

(Unaudited)
(Audited)


$000 $000
Aged medical care services incl support functions

3,949 2,638
General practice medical services

8,205 8,281
Total segment assets

12,154 10,919



Intercompany elimination

(1,371) (1,201)
Total segment assets

10,783 9,718




30 September 2024
31 March 2024
Segment liabilities

(Unaudited)
(Audited)


$000 $000
Aged medical care services incl support functions

1,889 1,461
General practice medical services

6,620 6,545
Total segment liabilities

8,509 8,006



Intercompany elimination

(1,371) (1,201)
Total segment liabilities

7,138 6,805

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


16


7.
Costs of employees and contractors includes:



30 September 2024 30 September 2023


(Unaudited) (Unaudited)

$000 $000
Salaries and wages

1,335 1,197
Short term incentives

148 105
Defined contribution (KiwiSaver)

71 57
Share based payments expense

9 -
Employee benefit expense

1,563 1,359




Contractors

110 101


1,673 1,460

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



30 September 2024 30 September 2023


(Unaudited) (Unaudited)


$000 $000
Existing operations

1,673 1,235
New acquired subsidiaries

- 225


1,673 1,460


8.
Professional and consulting fees

30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000 $000
Fees payable to auditor
65 47
Accounting and taxation services
30 20
Legal expenses
33 14
Directors' fees
90 90
Listing and share registry costs
20 26
Other consultancy costs
46 41

284 238

Legal fees include $19,853 (2023: $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 2024


17


9.
Other expenses

30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000 $000
Technology / IT 341 278
Marketing & PR 17 16
Travel & Entertainment 17 13
Professional operational services 94 70
Office & General 210 176

679 553

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



30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000 $000
Existing operations
672 362
New acquired subsidiaries
7 177

679 539


10.
Finance costs


30 September 2024 30 September 2023



(Unaudited) (Unaudited)


$000 $000
Interest expense on leases

96 105
Interest on bank loan

99 85


195 190

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


18


11.
Reconciliation of profit before tax to net cash from operating activities


30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000 $000
Profit before income tax 1,651 749



Adjustments to reconcile profit before tax to net cash
flows:

Depreciation and amortisation 200 203
Amortisation of intangibles 207 158
Share based payments expense 9 6

Other non-cash adjustments (3) -




Working capital adjustments:


Trade and other receivables (240) (254)
Trade and other payables 352 137


Loan receivable repayment - 80

2,176 1,079
Income tax paid (643) (285)



Net cash from operating activities 1,533 794


12.
Earnings per share

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

30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000 $000
Net profit attributable to the ordinary shareholders of the
Group
1,026 544
Earnings used in the calculation of basic earnings per share 1,026 544

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
10,003 9,993

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


19


Shares Shares

000's 000's
Adjustments for calculation of diluted earnings per share: -
-
Employee share options


Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings per share
10,003 9,993


From continuing operations:
Cents per share Cents per share
Basic earnings per share 10.25 5.44
Diluted earnings per share 10.25 5.44

Share options issued under ESOP plans are considered as antidilutive.

13.
Trade and other receivables

Current


30 September 2024 31 March 2024


(Unaudited) (Audited)


$000 $000
Trade receivables

1,046 763
Less provision for doubtful debts

(51) (26)


995 737

Other receivables 20 38

1,015 775

As at 30 September 2024 93% of the Group's trade receivables are current (31 March 2024: 90%). Short-term
receivables from customers (excluding Health NZ funding) are recorded at the amount due, less an allowance
for expected credit losses (ECL). This allowance is calculated using a simplified approach based on a lifetime
ECL. Current provision recorded is immaterial.



Expected credit loss rate Carrying amount Allowance for expected credit
losses


30
September
2024
31 March
2024
30 September
2024
31 March
2024
30 September
2024
31 March
2024


(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)


$000 $000 $000 $000 $000 $000
Current (<30 days)

0% 0% 923 665 - -
30 to 60 days

0% 0% 24 22 - -
30 to 60 days

24% 0% 30 9 2 -
Over 90 days

74% 38% 69 67 49 26


1,046 763 51 3

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


20

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 2024 and the
prior corresponding period:

Right-of-use-asset

30 September 2024 31 March 2024

(Unaudited) (Audited)

$000 $000
Opening balance at beginning of period (Audited)
2,514 2,967
Additions
- -
Lease reassessments
27 (93)
Depreciation
(182) (360)
Closing balance
2,359 2,514

Lease liabilities

30 September 2024 31 March 2024

(Unaudited) (Audited)

$000 $000
Opening balance at beginning of period (Audited)
2,705 3,038
Additions
- -
Lease reassessments
28 (50)
Interest
96 204
Lease repayments
(246) (487)
Closing balance
2,583 2,705



Current
320 306
Non-current
2,263 2,399

2,583 2,705

Amounts recognised in the Condensed Consolidated Statement of Comprehensive Income in the 6 months
ending 30 September 2024:

30 September 2024 30 September 2023

(Unaudited) (Unaudited)

$000
$000
Depreciation of right-of-use assets property
182 186
Interest expense (included in finance cost)
96 105
Short term office rent (included in office & general)
55 51

The total cash outflow for leases in the 6-month period ended September 2024 was $245k (2023: $243k).
The future minimum rentals payable under non-cancellable operating leases are $1,115k (2023: $1,337k).

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


21

15.
Business combinations

15.1 Group composition

The parent entity is Third Age Health Services Limited, a company incorporated in New Zealand. The Group
had the following subsidiaries as of 30 September 2024. 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 2024
Ownership
31 March 2024
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
New Zealand
New Zealand
100%
67%
100%
67%
Third Age Employee Share Purchase Plan Trust New Zealand
100% 100%
Hub Aged Care Limited (acquired 01 April 2024) New Zealand
70% -



On 9
th
August 2024, the Company sold their 10% share back to Phoenix Health Hub Limited for the nominal
value of $1. The Company had not invested any funds and had a nil fair value as at 31 March 2024.

15.2 Acquisitions

On 1 April 2024 Third Age Health Services Limited acquired a 70% share of Hub Aged Care Limited, a
Wellington based primary care provider to aged residential care facilities. The acquisition supports Third Age
Health Services Limited future growth strategy in the Wellington region, an essential part of expanding our
national coverage and continuing to develop the model of healthcare for older people.
The complete results of the company since acquisition are included in these Consolidated Financial Statements
for the period ended 30 September 2024, contributing $733k to Group revenues and $354k to Group EBITDA.
Details of the fair value of identifiable assets and liabilities acquired purchase consideration and goodwill are
as follows:

Hub Aged Care

$000
Cash
624
Contingent consideration at Fair Value
118
Total fair value of consideration transferred 742
Fair value of NCI on acquisition 206
Current assets
Cash and receivables 52
Trade receivables 122
Non-current assets
Property, plant and equipment 2
Intangible Assets (excluding goodwill) 880
Total assets acquired 1,056

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


22


Hub Aged Care

$000
Current liabilities
Trade and other liabilities (13)
Accrued expenses (66)
GST & Income Tax (43)
Non-current liabilities
Deferred tax liability on intangibles (246)
Total Liabilities acquired (368)
Total net assets acquired 688
Goodwill 260

The total nominal consideration transferred or to be transferred to the vendors is as follows:
$598,000 in cash paid on 1 April 2024.
$26,090 in cash paid on 31 May 2024 as a working capital adjustment being 50% of current assets less
current liabilities at acquisition date per the sale and purchase agreement.
$130,000 in deferred contingent consideration considered payable on 1 April 2025, if certain
conditions are met (discussed below).

The $130,000 in total deferred contingent consideration is payable to two of the vendors if the following
conditions are met:
o The patient numbers after 12 months are the same or greater than the forecast confirmed and
agreed by the parties.
o Net profit is maintained or greater for the 12 months post completion.

The fair value of the deferred consideration under IFRS 13 has been calculated using net present value at the
incremental borrowing rate of 10.3%. No risk portion calculation is deemed necessary. The fair value of the
$130,000 deferred contingent consideration is $117,860. The total difference of $11,140 interest expense is
recorded over 1 year expensed monthly until 1 April 2025.

The total fair value of all consideration is $741,950.

The $598,000 cash paid was fully financed through an ANZ loan Facility at 10.3%. The working capital
adjustment was settled through available cash at bank.

The expenses relating to the acquisition of Hub Aged Care are the following:

$19,853 in legal fees have been included in the Condensed Consolidated Statement of
Comprehensive Income in the 6 months ending 30 September 2024 (note 8).
$11,140 in interest costs over 12 months from discounting the contingent consideration payable 1
April 2025 to fair value at acquisition date. $5,570 in interest costs have been included in the
Condensed Consolidated Statement of Comprehensive Income in the 6 months ending 30 September
2024 (note 10).

At acquisition date the company held trade receivables with a book and fair value of $122,091. All contracted
cash flows were expected to be collected on all receivables and no bad debts were recorded.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


23


An assessment of goodwill is tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. The goodwill recognised will not be deductible for tax purposes.
Goodwill arises on the acquisition of subsidiaries. Goodwill represents the excess of the purchase
consideration over the fair value of the net identifiable tangible and intangible assets at the time of
acquisition. Management has used its past established experience of sales growth and synergistic savings to
determine their expectations for the future. The goodwill incorporates the expected synergies from local
knowledge and contacts with our national know-how and proven best practice. Deferred tax liability of 28% on
intangible assets is calculated at the time of acquisition, the minority interest portion is considered immaterial.

The value of the NCI is based on the fair value of net identifiable assets acquired based on the portion of net
identifiable assets owned by the NCI.
With this method, we have included the intangibles recognised on consolidation which cannot be recognised
in the separate financial statements (PHO Contract and Patient Enrolled Register). The total NCI of $206,242 is
made up on the following:
30% of the book value of all the net balance sheet assets as at 31 March 2024 (30% of $53,758)
30% of the Patient Enrolled Registered (30% of $732,212)
30% of the PHO contract (30% of $147,950)
30% of deferred tax liability on intangibles (30% of $246,446).

16.
Bank loan

On 1 April 2024, a $598k loan drawdown was completed for the purchase of Hub Aged Care Limited. During
the period ended 30 September 2024, a total of $729k was repaid to reduce the principal amounts of our bank
loans including the loan related to Hub Aged Care. Total fees and interest charged on the loan in the period
was $99k (2023: $85k). 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 2024.

17.
Share capital

All ordinary shares rank equally with one vote attached to each fully paid share. Total issued share capital is
10,003,099 ordinary shares (2024: 10,004,149).

18.
Dividend paid during the period

Dividends declared and paid during six month period ended 30 September 2024:
Cents per share $000
Final dividend for the year ended 31 March 2024
2.80
280
Interim dividend (Quarter 1)
3.28
328


608



Dividends declared and paid during six month 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


420

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2024


24

Related party transactions

Transactions with related parties

Name of related party Nature of relationship Transaction
30 September 2024 30 September 2023


(Unaudited) (Unaudited)
$000 $000
John Fernandes Director & Shareholder Director fees 31 31
Bevan Walsh Director & Shareholder Director fees 18 18
Wayne Williams Director Director fees 23 23
Steffan Crausaz (appointed
1 December 2023)
Director Director fees 19 -
Norah Barlow (resigned 1
December 2023)
Director & Shareholder Director fees - 19


Steffan Crausaz and Wayne Williams for the period ended 30 September
2024 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 Steffan Crausaz a fee of
$1,250.

19.
Subsequent event

Interim dividend declared

Subsequent to the period end, the Board have declared a fully imputed interim dividend (Quarter 2) of 3.55
cents per share.

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

---

Third Age Health delivers 1H25 Underlying NPATA
1
of $1,361k up 96%
and 34% on 1H24 and 2H24 respectively.
1H25 Business Highlights - Unaudited Financial Performance
• Services provided to 87 Aged Residential Care (“ARC”) facilities at the end of 1H25 up 23 vs
PCP2:
o The number of ARC residents (patients) we provide care to has increased by 27.1% in
1H25 (to 5,278 residents) compared to the PCP 2; 14.8% of total ARC population
across NZ currently supported by TAH3.
• Grew our combined enrolled patient population by 132% across both ARC and general
practice for 1H25 to 25,810 when compared to PCP.
• Total debt repayment for 1H25 was $729k offset with the increase in debt to finance the
acquisition of Hub Aged Care of $598k. This resulted in a net debt reduction of $131k.
• Grew our team of clinicians to 100 an increase of 27 (37%) from PCP.

1H25 Financial Highlights (Unaudited)
• Group revenue up 28% over 1H24 to $9,413k and 21% over 2H24 (1H24: $7,341k, 2H24:
$7,810k)
• Revenue from ARC core business up 49% over 1H24 to $5,693k (1H24: $3,815k).
• Underlying NPBTA
4
up 105% over 1H24 at $1,858k and 38% over 2H24 (1H24: $906k. 2H24:
$1,345k)
• Underlying NPATA (adjusted for unaudited tax calculation) up 96% over 1H24 to $1,361k and
34% over 2H24 (1H24: $694k, 2H24: $1,014k)
• Statutory NPAT (adjusted for unaudited tax calculation) up 66% over 1H24 to $1,154k and
36% over 2H24 (1H24: $537k, 2H24: $846K)
Financial Highlights (unaudited) $'000
1H25 1H24 1H
change
2H24 2H
change`
Revenue 9,413 7,341 +28.2% 7,810 +20.5%
Underlying EBIT 2,053 1,096 +87.3% 1,510 +36.0%
EBIT Margin 21.8% 14.9% +6.9% 19.3% +2.5%
Underlying NPBTA 1,858 906 +105.1% 1,345 +38.1%
Underlying NPBTA% 19.7% 12.3% +7.4% 17.2% +2.5%
Underlying NPATA 1,361 694 +96.1% 1,014 +34.2%
Underlying NPATA% 14.5% 9.5% +5.0% 13.0% +1.5%




Statutory NPAT
1,154 537 +114.8% 846 +36.4%
Statutory NPAT%
12.3% 7.3% +5.0% 10.8% +1.5%
Diluted earnings per share
10.25 5.44 4.81 8.63 1.62
Ordinary dividends per share (cents)
6.58 3.96 +66.2% 6.11 +7.7%
Return on Equity (TTM)
59.1% 30.2% +28.9 47.0% +12.1%
Return on Capital Employed (TTM)
43.1% 19.9% +23.2% 36.0% +7.1%

1
Underlying NPATA is adjusted for non-cash amortisation charges arising as a result of purchase accounting rules
2
PCP refers to prior comparable period i.e. 1H24.
3
NZACA ARC Industry Profile 2021-22 https://berl.co.nz/our-mahi/aged-residential-care-industry-profile-2021-22
4
Underlying NPBTA is adjusted for non-cash amortisation charges arising as a result of purchase accounting rules

Dividend Declaration
We are pleased to announce a second quarter fully imputed dividend per share of 3.55 cents, in line
with our dividend policy. Combined with the dividend of 3.28 cents paid for the first quarter this
takes our total dividend declared for the 1H25 to 6.83 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 80
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