Third Age Health Services - 1H FY26 Results

Third Age Health delivers 1H26 Underlying NPATA
1
of $1,742k up 28%
and 14% on 1H25 and 2H25 respectively.
1H26 Business Highlights
• Services provided to 122 Aged Residential Care (“ARC”) facilities at the end of 1H26 up 35
YoY
2
.
o The number of ARC residents (patients) we provide care to has increased by 35.6%
YoY to 7,159 residents
o Excluding the two recent acquisitions the number of ARC residents we provide care
to has increased by 3.7% YoY
o The number of ARC residents we provide care to is estimated at 19.0% of the total
ARC population across NZ
3
.2
• Grew our combined enrolled patient population by 5% across both ARC and general practice
for 1H26 to 27,191 including new acquisitions when compared to YoY. Excluding acquisitions,
our combined enrolled patient population grew 2% with growth in ARC offset by a 2.4% YoY
decline in general practice enrolments.

Financial Highlights (unaudited) $'000
1H26 1H25 1H
change
2H25 2H
change`
Revenue 10,653 9,413 +13.2% 9,668 +10.2%
Underlying EBIT 2,539 2,053 +23.7% 2,216 +14.6%
EBIT Margin 23.8% 21.8% +2.0% 22.9% +0.9%
Underlying NPBTA
4
2,367 1,858 +27.4% 2,050 +15.5%
Underlying NPBTA% 22.2% 19.7% +2.5% 21.2% +1.0%
Underlying NPATA 1,742 1,361 +28.0% 1,525 +14.2%
Underlying NPATA% 16.4% 14.5% +1.9% 15.8% +0.6%




Statutory NPAT
1,520 1,154 +31.7% 1,324 +14.8%
Statutory NPAT%
14.3% 12.3% +2.0% 13.7% 0.6%
Diluted earnings per share
14.22 9.96 +4.26 12.49 +1.73
Ordinary dividends per share (cents) 8.00 6.83 +17.1% 7.88 +1.5%
Return on Equity (TTM)
62.9% 55.3% +7.6% 60.9% +2.0%
Return on Capital Employed (TTM)
41.5% 35.1% +6.4% 42.8% -1.3%


1H26 Financial Highlights (Unaudited)
• Group revenue up 13% YoY to $10,653k and 10% over 2H25 (1H25: $9,413k, 2H25: $9,668k).
• Revenue from ARC-related business up 20% YoY to $6,840k (1H25: $5,693k).
• Underlying NPBTA
3
up 27% YoY at $2,367k and 16% over 2H25 (1H25: $1,858k. 2H25:
$2,050k).

1
Underlying NPATA is adjusted for non-cash amortisation charges arising as a result of purchase accounting rules
2
YoY represents H1 FY26 compared to H1 FY25
3
Based on actual enrolment to 30 September 2025 and our latest estimates of ARC occupancy across New Zealand
according to Aged Care Association aged residential care occupancy report for 30 June 2025 quarter.
4
Underlying NPBTA is adjusted for non-cash amortisation charges arising as a result of purchase accounting rules.

• Underlying NPATA (adjusted for unaudited tax calculation) up 28% YoY to $1,742k and 14.2%
over 2H25 (1H25: $1,361k, 2H25: $1,525k).
• Statutory NPAT (adjusted for unaudited tax calculation) up 32% YoY to $1,520k and 14% over
2H25 (1H25: $1,154k, 2H25: $1,324K).

Dividend Declaration
We are pleased to announce a second quarter fully imputed dividend per share of 4.00 cents, in line
with our dividend policy. Combined with the dividend of 4.00 cents paid for the first quarter this
takes our total dividend declared for the 1H26 to 8.00 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 120
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

---

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

Updated as at March 2025

Results for announcement to the market
Name of issuer Third Age Health Services Limited
Reporting Period 6 months to 30 September 2025
Previous Reporting Period 6 months to 30 September 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$10,653 13.2%
Total Revenue $10,653 13.2%
Net profit/(loss) from
continuing operations
$1,520 31.7%
Total net profit/(loss) $1,520 31.7%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.04000000
Imputed amount per Quoted
Equity Security
$0.01555556
Record Date 14 November 2025
Dividend Payment Date 2 December 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
-$0.154 -$0.076
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The movement in net tangible assets is the result of changes in the
Statement of Financial Position composition owing to the increase in
intangibles from the acquisition of ARC Health Limited and Cicada Health
Limited and the corresponding decrease in cash at bank also owing to this
purchase of these acquisitions. See Half Year financial statements for further
details.
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

7 November 2025

Unaudited financial statements accompany this announcement.

---

INTERIM REPORT
INTERIM REPORT
For the six monthsended
30September 2025

John Fernandes
Executive Chairman
November 2025
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 2025.
CONTENTS
Executive Chairman Report
Interim Financial Statements
Notes to Financial Statements
3 - 4
5 - 10
11 - 27

Dear Shareholders,
During the first half, NPAT increased by 31.7% Yo Y
1
to $1,520k, while underlying NPATA
2
rose
28.0% Yo Y to $1,742k.
We also completed the acquisitions of ARC Health and Cicada Health which provide medical
services to aged residential care (“ARC”) facilities. ARC Health operates in Canterbury, and
Cicada Health in the Bay of Plenty. Their integration further strengthens our national network,
and we’re pleased that the founders of both businesses remain co-owners and continue to play
an active role.
Financial Performance
Our ARC-related business continues to grow with 7,159 enrolled patients at period end.
Excluding the two new acquisitions, organic enrolled patients grew 3.7% Yo Y to 5,475, and ARC
total revenue grew 20% to $6,840k. We continue to attract interest for our services from
additional ARC facilities, however growth during the period was constrained by the sector-wide
shortage of clinical workforce. This has required ongoing discipline and trade-offs. We are
spending more on workforce recruitment, development and digital enablement to support
sustainable growth over time.
Our community general practice business delivered further gains in financial performance.
Revenue rose 2.5% to $3,813k, and profitability also improved through ongoing process
improvements. Enrolled patient numbers declined 2.4% Yo Y to 20,032, driven by the residual
impact of a doctor departure earlier in the year, along with a doctor vacancy (now filled) at one
of our clinics. Reversing this trend is a key priority.
Creating Value for Our Customers
We continue to invest in initiatives that improve outcomes for our customers and make our
services more resilient.
Our Digital Clinical Portal continues to gain traction, with rollout now reaching over 30 facilities.
It has supported more than 900 scheduled rounds across multiple regions and customers.
Develop ment of Phase Two, which seeks to further improve operational efficiency, is well
underway and we have started planning for Phase Three.
We’ve also progressed our commitment to sector-leading quality care standards through the
development of the Residential Care Medical Service Provider Standard, or Elder Care
Standards. These standards have now been independently assessed by a designated auditing
agency
3
and rolled out to our clinicians. They reflect our goal of supporting more consistent,
high-quality aged care across the sector.
We were recently appointed as the sole preferred partner for medical services by the Aged Care
Association New Zealand. We see this as both a recognition of the work done to date and a
foundation for deeper collaboration. We value the opportunity to help advance outcomes for
the sector.
1
Ye a r-Over-Year i.e. 1H 2026 compared to 1H 2025
2
Net Profit After Tax before Amortisation is adjusted for non-cash amortisation charges arising as a result
of purchase accounting rules.
3
Organisations authorised by the Ministry of Health to audit health and disability service providers
against regulatory standards.
3

Business Unit Leadership
We are pleased to have appointed Niomi Fleming and Lucy Wu as Acting General Managers of
our ARC-related and community g eneral practice businesses respectively.
Niomi has led the day-to-day operations of our ARC business since joining us in 2022. She
brings over 15 years of experience in the primary care sector and is known for her focus on
delighting customers, strong operational discipline, and close relationships with clinicians.
Lucy has been our Clinical Change Lead since 2021 and brings first-hand experience as both a
general practice nurse and a programme lead. She has helped shape and deliver initiatives that
have improved operational performance and patient outcomes.
Our operating model is built on decentralised autonomy and accountability. This enables faster
decisions made closer to the front line, deeper customer engagement, and stronger support for
our teams. We’re pleased to see strong internal leaders step into these roles and are confident
in their ability to drive performance.
Capital Allocation
During the first half, we funded the acquisitions of ARC Health and Cicada Health through a
combination of cash on hand and a draw on our line of credit. The line has since been repaid.
These acquisitions were immediately accretive and have increased our earnings power.
Our goal is to maximise the average annual rate of increase in intrinsic value per share over
time. One of the ways we aim to achieve this is through allocating capital to acquiring good
businesses where our operating model built around decentralisation and Kaizen can deliver
strong results. This means businesses, both within and outside of healthcare, from owners
planning for their own third age. We offer a safe home for those wanting to entrust their business
to someone who will own it permanently, grow it carefully, and preserve its legacy.
Looking Ahead
Our focus remains on what’s within our control: delighting customers, running an organisation
grounded in Kaizen, aligning incentives and being frugal. We’re optimising for long-term
durability, and will continue to make choices that support that, even when they come with a
short-term cost.
We thank our team for their work and you, our fellow owners, for your trust.
Sincerely,
John F
ernandes
Executive Chairman
4

FINANCIAL STATEMENTS

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Financial Statements
For the six months ended 30 September 2025

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 subsidiaries (the “Group’) for the six-months ended 30 September 2025.
The Board of Directors of the Group authorised the Condensed Consolidated Financial Statements, set out on
pages 7 to 27 for issue on 7 November 2025.





John Fernandes
Executive Chairman
Wayne Williams
Director and Audit Committee Chair

Third Age Health Services Limited and subsidiaries
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2025


7


30 September 2025 30 September 2024

(Unaudited) (Unaudited)

Notes $000 $000
Revenue 5
10,653 9,413
Cost of services 6 (5,258) (4,554)
Gross profit

5,395 4,859



Other income

23 30



Employees and contractors 8 (1,600) (1,673)
Professional and consulting fees 9 (320) (284)
Other expenses 10 (739) (679)
Operational expenses

(2,659) (2,636)



EBITDA

2,759 2,253



Amortisation and depreciation 11 (476) (407)
Finance costs 12 (138) (195)



Profit before income tax

2,145 1,651



Income tax expense

(625) (497)



Profit for the period

1,520 1,154



Other comprehensive income

- -



Total comprehensive income for the period

1,520 1,154



Profit and total comprehensive income attributable to:



Shareholders of the parent

1,415 1,026
Non-controlling interests

105 128



Profit for the period

1,520 1,154



Earnings per share (note 14)



Basic earnings per share (cents)

14.22 10.26
Diluted earnings per share (cents)

14.22 9.96




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 2025


8


30 September 2025 31 March 2025

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

Cash and cash equivalents

1,579 2,594
Trade and other receivables 15 1,348 1,059
Other assets 209 104
Accrued revenue 43 40
Total current assets

3,179 3,797



Non-current assets


Property, plant and equipment

209 189
Right-of-use-assets 16 2,164 2,181
Intangible assets 17 7,077 4,773
Financial assets

20 20
Total non-current assets

9,470 7,163



Total assets

12,649 10,960
Current liabilities


Trade and other payables

2,539 1,882
Employee benefits 580 432
Provisions 22 22
Tax liabilities

382 648
Bank loan

90 59
Lease liabilities 16 354 330
Total current liabilities

3,967 3,373


Non-current liabilities


Bank loan 1,062 1,091
Other payables

- 6
Lease liabilities 16 2,074 2,094
Deferred tax liability

731 429
Total non-current liabilities

3,867 3,620


Total liabilities

7,834 6,993


Net assets

4,815 3,967
Equity


Share capital 20 485 485
Share based payment reserve

- 31
Retained earnings

3,946 3,326
Equity attributable to the parent

4,431 3,842



Non-Controlling Interests (NCI)

384 125


Total Equity

4,815 3,967

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 2025


9


Share
capital
Share
based
payments
reserve
Retained
earnings
Non-
Controlling
Interest Total

Notes $000 $000 $000 $000 $000
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 21 - - (608) (29) (637)
Share buyback (2) - - - (2)
Share based payments

- 9 - - 9
NCI on acquisition - - - 206 206
Balance at 30 September 2024 (Unaudited)

594 666 2,122 261 3,643

Balance at 1 April 2025 (Audited)

485 31 3,326 125 3,967


Profit for the period

- - 1,415 105 1,520
Total comprehensive income for the period

- - 1,415 105 1,520


Dividend 21 (795) (97) (891)
Share buyback - - - - -
Share based payments - (31) - - (31)
NCI on acquisitions 18.2 - - - 250 250
Balance at 30 September 2025 (Unaudited)

485 - 3,946 384 4,815


















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 2025

10



30 September 2025 30 September 2024

(Unaudited) (Unaudited)

Notes $000 $000
Cash flows from operating activities

Receipts from customers

11,465 10,200
Payments to suppliers and employees

(8,788) (7,860)
Interest received

15 22
Interest paid

(124) (186)
Income taxes paid

(1,047) (643)
Net cash flows from operating activities 13 1,521 1,533



Cash flows from investing activities



Payments for property, plant and equipment

(33) (65)
Investment in developing intangible assets (108) (13)
Acquisition of businesses, net of cash acquired

(1,341) (571)
Net cash flows used in investing activities

(1,482) (649)



Cash flows from financing activities



Shares acquired - (2)
Proceeds from bank borrowing 19 607 598
Loan repayments on bank borrowing 19 (605) (729)
Payment of lease liabilities 16 (164) (150)
Dividend paid 21 (795) (608)
Dividend paid to NCI (97) (27)
Net cash flows (used in) / provided by financing
activities

(1,054) (918)



Net increase / (decrease) in cash and cash equivalents

(1,015) (34)


Cash and cash equivalents at the beginning of the
period

2,594 1,695
Cash and cash equivalents at the end of the period

1,579 1,661








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 2025


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 “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 Group is principally engaged in the provision of medical services to the aged care sector and in community
general practices. Those companies included in the Group are disclosed in note 18. These condensed
consolidated interim financial statements are for the 6 months ended 30 September 2025. 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 audited annual financial report for the year
ended 31 March 2025. Consistent accounting policies with the full financial statements for the year ended 31
March 2025 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 2025 and comparatives
for the six months ended 30 September 2024 are unaudited. The consolidated annual financial statements for
the year ended 31 March 2025 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 2025


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 combinations
On 1 September 2025 Third Age Health Services Limited acquired an 80% share of ARC Health Limited, a
Canterbury based primary care provider to aged residential care facilities for a value of $1.1m.
In addition, on 1 September 2025 Third Age Health Services Limited acquired a 70% share of Cicada Health
Limited, a Bay of Plenty based primary care provider to aged residential care facilities for a value of $0.9m.
The consolidated financial statements are based on the Company’s best estimate at the date of preparation
owing to a proportion of the purchase price of each acquisition being deferred contingent consideration.

Carrying value of intangible assets
The Group has determined that no Cash Generating Units show indications of impairment.

3. Significant Events and Transactions

3.1 Acquisition of ARC Health Limited and Cicada Health Limited

On 1 September 2025 Third Age Health Services Limited acquired an 80% share of ARC Health Limited, a
Canterbury based primary care provider to aged residential care facilities for a value of $1.1m. In addition, on
1 September 2025 Third Age Health Services Limited acquired a 70% share of Cicada Health Limited, a Bay of
Plenty based primary care provider to aged residential care facilities for a value of $0.9m. Refer note 18.2 for
further details.

4. Net tangible assets

The Group has net tangible assets as at 30 September 2025 of (15.4) per share (31 March 2025 of (3.8)) cents
per share). The movement in net tangible assets is the result of changes in the Statement of Financial Position
composition owing to the increase in intangibles from the acquisition of ARC Health Limited and Cicada Health
Limited and the corresponding decrease in cash at bank owing to the purchases of these businesses.

5. 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 such as 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.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


13

Capitation revenue
The Group provides various medical services on a ‘stand ready’ basis on behalf of Primary Health Organisations
(PHOs) and the company receives revenue known as “capitation” from the PHOs for this service. 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 a time lapsed basis.

Other income
Other income includes interest income. 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 through the expected life of the financial
asset to the net carrying amount of the financial asset.


30 September 2025 30 September 2024


(Unaudited) (Unaudited)


$000 $000
Capitation revenue

Aged medical care services

1,875 1,495
General practice medical services

2,138 2,042





Consultation revenue



Aged medical care services

4,909 4,113
General practice medical services

1,392 1,389




Other revenue



Aged medical care services

56 85
General practice medical services

283 289




Total revenue from contracts with customers

10,653 9,413


30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Total revenue from existing operations

10,404 8,680
Total revenue from acquired businesses

249 733

10,653 9,413

Total revenue from existing operations relates to businesses owned by the Group for over twelve months.
Total revenue from acquired businesses relates to businesses owned by the Group for under twelve months.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


14

6. Cost of services

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



30 September 2025 30 September 2024


(Unaudited) (Unaudited)


$000 $000
Practitioners (GP’s and nurses)

5,127 4,423
Defined contribution (KiwiSaver)
12 16
Medical supplies
119 115
Total cost of services

5,258 4,554

30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Total cost of services from existing operations

5,110 4,204
Total cost of services from acquired businesses

148 350

5,258 4,554
7. 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.

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 2025 30 September 2024
Segment revenue

(Unaudited) (Unaudited)

$000 $000
Aged medical care services

6,840 5,693
General practice medical services

3,813 3,720
Total for continuing operations

10,653 9,413


Segment profit before tax
30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Aged medical care services
1,634 1,322
General practice medical services
511 329
Total for continuing operations
2,145 1,651

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


15

Segment profit includes the following items:
For the six months ended 30 September 2025

Aged care General practice


medical services medical services


$000 $000
EBITDA

1,781 978
Depreciation

(26) (194)
Amortisation of intangibles

(94) (162)
Interest expense on leases

(1) (86)
Interest on bank Loan

(2) (49)
Profit before tax

1,658 487



Income tax expense

(508)
(117)
Profit for the period

1,150 370


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

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

Segment profit before tax for the general practice medical services in 2025 includes $86k of finance costs from
the ANZ loan facility (note 12). 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 2025
31 March 2025
Segment assets

(Unaudited)
(Audited)


$000 $000
Aged medical care services incl support functions

6,884 4,091
General practice medical services

7,113 8,416
Total segment assets

13,997 12,507


Intercompany elimination

(1,346) (1,547)
Total segment assets

12,651 10,960

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


16


30 September 2025
31 March 2025
Segment liabilities

(Unaudited)
(Audited)


$000 $000
Aged medical care services incl support functions

4,073 3,200
General practice medical services

5,107 5,340
Total segment liabilities

9,180 8,540



Intercompany elimination

(1,346) (1,547)
Total segment liabilities

7,834 6,993

8. Employees and contractors


30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Salaries and wages

1,393 1,335
Short term incentives

60 148
Defined contribution (KiwiSaver)

68 71
Share based payments expense

(36) 9
Employee benefit expense

1,485 1,563




Contractors

115 110


1,600 1,673

Due to an employee departure, which resulted in the forfeiture of share options, the Group has reversed all
previously accrued share-based payment expenses and related short-term incentive accruals for that
employee.

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


30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Existing operations

1,589 1,673
New acquired subsidiaries

11 -

1,600 1,673

9. Professional and consulting fees

30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Fees payable to auditor
38 65
Accounting and taxation services
20 30
Legal expenses
111 33
Directors' fees
90 90
Listing and share registry costs
24 20
Other consultancy costs
37 46

320 284

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


17

10. Other expenses

30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Technology / IT 383 341
Marketing & PR 9 17
Travel & Entertainment 24 17
Professional operational services 118 94
Office and General 205 210

739 679

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



30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Other expenses from existing operations
732 672
Other expenses from acquired businesses
7 7

739 679


11. Amortisation and depreciation


30 September 2025 30 September 2024


(Unaudited) (Unaudited)


$000 $000
Depreciation on right of use assets

184 182
Depreciation on plant, property and equipment

36 18
Amortisation of acquisition-related intangibles

222 201
Amortisation of software

34 6


476 407


12. Finance costs

30 September 2025 30 September 2024


(Unaudited) (Unaudited)


$000 $000
Interest expense on leases

87 96
Interest on bank loan

51 99


138 195

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


18

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


30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Profit before income tax 2,145 1,651



Adjustments to reconcile profit before tax to net cash flows:

Depreciation and amortisation 220 200
Amortisation of intangibles 256 207
Share based payments expense (31) 9
Other non-cash adjustments (1) 7






Working capital adjustments:

(Increase)/decrease in trade and other receivables (289) (241)
(Increase)/decrease in other assets (107) (87)
(Increase)/decrease in accrued revenue (3) 70

Increase/(decrease) in trade and other payables 651 351
Increase/(decrease) in employee benefits 148 116

Non-operating working capital adjustment (415) (124)
Impact of working capital acquired (6) 18

2,568 2,177
Income tax paid (1,047) (643)



Net cash from operating activities 1,521 1,533


14. 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 period ending 30 September 2025,
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.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


19

Reconciliation of earnings used in calculating earnings per share

30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000 $000
Net profit attributable to the ordinary shareholders of the
Group
1,415 1,026
Earnings used in the calculation of basic earnings per share 1,415 1,026

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
9,955 10,003


Adjustments for calculation of diluted earnings per share:

Employee share options -
300


Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings per share
9,955 10,303


From continuing operations:
Cents per share Cents per share
Basic earnings per share 14.22 10.26
Diluted earnings per share 14.22 9.96

The 30 September 2024 comparative has been adjusted to reflect employee share options previously not
accounted for.

15. Trade and other receivables

Current

30 September 2025 31 March 2025

(Unaudited) (Audited)


$000 $000
Trade receivables

1,399 1,107
Less provision for doubtful debts

(62) (59)


1,337 1,048

Other receivables 11 11

1,348 1,059

As at 30 September 2025 92% of the Group's trade receivables are current (31 March 2025: 94%). 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. The recorded provision in the reporting period is immaterial.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


20


Expected credit loss rate Carrying amount Allowance for expected
credit losses

30 September
2025
31 March
2025
30 September
2025
31 March
2025
30 September
2025
31 March
2025

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

$000 $000 $000 $000 $000 $000
Current (<30 days) 0% 0% 1,283 1,035 4 1
30 to 60 days 15% 31% 32 15 5 5
30 to 60 days 15% 74% 33 11 5 5
Over 90 days 80% 98% 51 46 47 45
1,399 1,107 62 59

16. Right of use assets and lease 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 2025 and the
prior corresponding period:

Right-of-use-asset

30 September 2025 31 March 2025

(Unaudited) (Audited)

$000 $000
Opening balance at beginning of period (Audited)
2,181 2,514
Additions
155 -
Lease reassessments
12 29
Depreciation
(184) (362)
Closing balance
2,164 2,181

Lease liabilities

30 September 2025 31 March 2025

(Unaudited) (Audited)

$000 $000
Opening balance at beginning of period (Audited)
2,424 2,705
Additions
156 -
Lease reassessments
12 27
Interest
87 185
Lease repayments
(251) (493)
Closing balance
2,428 2,424



Current
354 330
Non-current
2,074 2,094

2,428 2,424

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


21

Amounts recognised in the Condensed Consolidated Statement of Comprehensive Income in the 6 months
ending 30 September 2025:

30 September 2025 30 September 2024

(Unaudited) (Unaudited)

$000
$000
Depreciation of right-of-use assets property
184 182
Interest expense (included in finance cost)
86 96
Short term office rent (included in office & general)
54 55

The total cash outflow for leases in the 6-month period ended September 2025 was $250k (2024: $245k).
The future minimum rentals payable under non-cancellable operating leases are $605k (2024: $1,115k).

17. Intangibles

30 September 2025 31 March 2025

(Unaudited) (Audited)


$000 $000
Goodwill

3,208 2,078
Intangibles

3,869 2,540


7,077 4,773

17.1 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.


30 September 2025 31 March 2025

(Unaudited) (Audited)


$000 $000
Opening balance

2,078 1,651
Additions from acquisitions

1,130 427
Closing balance

3,208 2,540



Goodwill impairment

- -



Net carrying amount of goodwill

3,208 2,540



As at 30 September 2025 goodwill related to the age medical care services segment was $1,557k (31 March
2025: $427k) and goodwill related to the general practice medical services was $1,651k (31 March 2025:
$1,651k).

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


22


18. Business combinations

18.1 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 2025. The current reporting period includes results from
new subsidiaries that were not part of the group for the same period last year.

Subsidiary name Country of
incorporation
30 September 2025
Ownership
31 March 2025
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%
Hub Aged Care Limited New Zealand
70% 70%
ARC Health Limited (acquired 1 September 2025) New Zealand
80% -
Cicada Health Limited (acquired 1 September 2025) New Zealand
70% -
ARC Holdings (Third Age Health) Limited (incorporated 25
August 2025)
New Zealand
100% -



18.2 Acquisitions

On 1 September 2025 Third Age Health Services Limited acquired an 80% share of ARC Health Limited (ARC
Health), a Canterbury based primary care provider to aged residential care facilities. In addition, on 1
September 2025 Third Age Health Services Limited acquired a 70% share of Cicada Health Limited (Cicada), a
Tauranga based primary care provider to aged residential care facilities. The acquisitions support Third Age
Health Services Limited’s future growth strategy in the Canterbury and Tauranga regions, an essential part of
expanding our national coverage and continuing to develop the model of healthcare for older people.
The complete results of the companies since their acquisition have been included in these Consolidated
Financial Statements for the period ended 30 September 2025, contributing $137k (Cicada) and $112k (ARC
Health) to Group revenues and $29k (Cicada) and $72k (ARC Health) to Group EBITDA. Prior to acquisition,
these businesses operated on a cash accounting basis. Therefore, owing to a lack of comparable IFRS-specific
data as well as timing between acquisition and half year reporting, a pro-forma profit or loss information of
the combined entities for the six months of FY26 owing is not provided.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


23

Provisional purchase price allocation
Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are
as follows:

Cicada Heath Limited ARC Health Limited

$000 $000
Cash and expected working capital adjustment 677 868
Contingent consideration at fair value 183 234
Total fair value of consideration transferred
860 1,102
Fair value of NCI on acquisition
99 151
Current assets

Cash and receivables
122 94
Trade receivables
108 111
Prepayments
- 22
Non-current assets

Property, plant and equipment
- 23
Intangible assets (excluding goodwill)
422 888
Total assets acquired
652 1,138



Cicada Heath Limited ARC Health Limited

$000 $000
Current liabilities

Trade and other liabilities
(68) -
Accrued expenses
(78) (42)
GST and income tax
(59) (94)
Non-current liabilities

Deferred tax liability on intangibles
(118) (249)
Total liabilities acquired
(323) (385)
Total net assets acquired
329 753
Goodwill
630 500

ARC Health Limited (ARC Health)
For ARC Health total nominal consideration transferred or to be transferred to the vendors is as follows:
• $820,281 in cash paid on 1 September 2025.
• $48,269 current estimate of cash to be paid as a working capital adjustment.
• $280,000 in deferred contingent consideration considered payable on 1 September 2026, if certain
conditions are met (discussed below).

The $280,000 in total deferred contingent consideration is payable to 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 EBIT is greater than the normalised EBIT agreed during due diligence.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


24

The fair value of the deferred consideration under IFRS 13 has been calculated using a net present value
calculation at an appropriate discount rate. No risk portion calculation is deemed necessary. The fair value of
the $280,000 deferred contingent consideration is $233,997. The total difference of $46,003 interest expense
is recorded over one year and expensed monthly until 1 September 2026.

The total fair value of all consideration is $1,102,547.

The $820,281 cash paid was fully financed through working capital of the Group.

The expenses relating to the acquisition of ARC Health are the following:

• $24,159 in legal fees have been included in the Condensed Consolidated Statement of
Comprehensive Income in the 6 months ending 30 September 2025 (note 9).
• $46,003 in interest costs over 12 months from discounting the contingent consideration payable 1
September 2025 to fair value at acquisition date. $3,834 in interest costs have been included in the
Condensed Consolidated Statement of Comprehensive Income in the 6 months ending 30 September
2025 (note 12).

At acquisition date the company held trade receivables with a book and fair value of $110,798. All contracted
cash flows were expected to be collected on all receivables and no bad debts were recorded.

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 Customer Relationships). The total NCI of $150,711 is
made up on the following:
• 20% of the book value of all the net balance sheet assets as at 30 September 2025 (20% of $113,884)
• 20% of the customer relationships calculated above (20% of $617,175)
• 20% of the PHO contract calculated above (20% of $271,255)
• 20% of deferred tax liability on intangibles (20% of ($248,760))
Cicada Health Limited (Cicada)

For Cicada total nominal consideration transferred or to be transferred to the vendors is as follows:
• $607,150 in cash paid on 1 September 2025.
• $70,311 current estimation of cash to be paid as a working capital adjustment being 100% of net
August receivables collected after acquisition date per the sale and purchase agreement.
• $218,750 in deferred contingent consideration considered payable on 1 September 2026, if certain
conditions are met (discussed below).

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


25

The $218,750 in total deferred contingent consideration is payable to the vendors if 12 months EBIT is over the
normalised EBIT agreed during due diligence.

The fair value of the deferred consideration under IFRS 13 has been calculated using net present value at an
appropriate discount rate. No risk portion calculation is deemed necessary. The fair value of the $218,750
deferred contingent consideration is $182,810. The total difference of $35,940 interest expense is recorded
over 1 year expensed monthly until 1 September 2026.

The total fair value of all consideration is $860,271.

The $607,150 cash paid was financed via a draw on our line of credit.

The expenses relating to the acquisition of Cicada are the following:

• $22,904 in legal fees have been included in the Condensed Consolidated Statement of
Comprehensive Income in the 6 months ending 30 September 2025 (note 9).
• $35,940 in interest costs over 12 months from discounting the contingent consideration payable 1
September 2025 to fair value at acquisition date. $2,995 in interest costs have been included in the
Condensed Consolidated Statement of Comprehensive Income in the 6 months ending 30 September
2025 (note 12).

At acquisition date the company held trade receivables with a book and fair value of $107,949. All contracted
cash flows were expected to be collected on all receivables and no bad debts were recorded.

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 Customer Relationships). The total NCI of $98,709 is
made up on the following:
• 30% of the book value of all the net balance sheet assets as at 30 September 2025 (30% of $24,957)
• 30% of the customer relationships calculated above (30% of $279,310)
• 30% of the PHO contract calculated above (30% of $143,002)
• 30% of deferred tax liability on intangibles (30% of ($118,248))

Both ARC Health and Cicada acquisitions have working capital adjustments and deferred consideration
included in their sale and purchase agreements. Whilst initial accounting has been completed for the period
ending 30 September, these amounts are subject to change up to and including 12 months after acquisition
consistent with IFRS 3 business combinations.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


26

Hub Aged Care Limited

On 1 April 2024, a 70% share of Hub Aged Care Limited was acquired including deferred consideration payable
one year later. In April 2025 it was deemed that the performance metrices required for a full payout in the
deferred consideration for the acquisition of Hub Aged Care Limited had been reached as per the sale and
purchase agreement. A $130k payment was made in April 2025 to the vendor consistent with our reporting in
our audited consolidated annual financial statements for the year ending 31 March 2025.

19. Bank loan

On 1 September 2025, a $607k loan drawdown was completed for the purchase of Cicada Health Limited.
During the period ended 30 September 2025, a total of $605k was repaid to reduce the principal amounts of
our bank loans including the loan related to Cicada Health Limited. Total interest charged on total loans in the
period was $51k (2024: $99k). The Group has complied with banking covenants for the period ending 30
September 2025.

20. Share capital

All ordinary shares rank equally with one vote attached to each fully paid share. Total issued share capital is
9,954,491 ordinary shares (2025: 9,954,491).

21. Dividend paid during the period

Dividends declared and paid during six-month period ended 30 September 2025:
Cents per share $000
Final dividend for the year ended 31 March 2025
3.98
398
Interim dividend (Quarter 1)
4.00
396


795



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

From the beginning of FY26 the Board adopted an updated dividend policy, moving from a payout ratio to a
fixed quarterly dividend of 4 cents per share to provide shareholders with greater certainty of regular returns
while retaining flexibility to reinvest for growth.

Third Age Health Services Limited and subsidiaries
Notes to the condensed consolidated financial statements
For the six months ended 30 September 2025


27

22. Related party transactions

Transactions with related parties

Name of related party Nature of relationship Transaction
30 September 2025 30 September 2024

(Unaudited) (Unaudited)
$000 $000
John Fernandes Director & Shareholder Director fees 31 31
Bevan Walsh Director & Shareholder Director fees 18 18
Wayne Williams Director & Shareholder Director fees 23 23
Steffan Crausaz Director & Shareholder Director fees 19 19


Directors’ fees for John Fernandes, Steffan Crausaz and Wayne Williams for the period ended 30 September
2025 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.

23. Subsequent event

Interim dividend declared

After the period end, the Board have declared a fully imputed interim dividend (Quarter 2) of 4.00 cents per
share in line with its dividend policy.

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