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Third Age Health releases 2026 Annual Report

Annual Report26 June 2026TAHConsumer Discretionary

26 June 2026
Third Age Health Annual Report for the year ended 31 March 2026


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

ended 31 March 2026 (Annual Report).


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

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


Authorised for issue by:

John Fernandes

Chairman


For more information, please contact:

Geraldine Bromley, Head of Finance – Third Age Health

+64 22 127 5598

Geraldineb@thirdagehealth.co.nz


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

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ANNUAL
Report

2026

Our Mission, Vision and Values
FY26 Business Summary

FY26 Financial Summary

Letter to Shareholders

Built Around the Needs of Aged Care

Strengthening Foundations, Expanding Impact

Our Board

Consolidated Financial Statements

Directors' Responsibility Statement

Consolidated Statement of Profit or Loss and Other

Comprehensive Income

Consolidated Statement of Changes in Equity

Consolidated Statement of Financial Position

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Independent Auditor's Report

Statement of Corporate Governance

Shareholder and Statutory Information

Corporate Directory

3

4

5

6

10

12

16

17

18

19

20

21

22

23

61

66

79

85

CONTENTS

Our Vision
Third Age Health is the trusted leader for living well, providing

personalised and comprehensive care at every life stage.

Our Mission

Elevating healthcare to live well.

Our Values

We are one team

We care

We get it done, well

Quality is key. We care for all of our stakeholders – our people,

patients, facilities and shareholders.

We all achieve more when we work together – working with

our stakeholders in all aspects of delivering care.

We have a can-do attitude. We strive to think differently.

We do what needs to be done, to the best of our ability.

We’re innovative, visionary and resourceful. We get it done

and we do it right.

We are persistent, committed and driven to get the best

outcomes for all of our stakeholders – our patients, our

people, clients and shareholders.

We’re committed

3

FY26 Business Summary
For over 15 years, Third Age Health Services Limited (“Third Age Health”, “TAH”) has

played a steady and evolving role in supporting healthcare outcomes for older New

Zealanders. What began as a focused provider of primary medical services to aged

residential care has developed into a national healthcare organisation supporting older

New Zealanders in aged residential care, while also delivering general practice services

to the wider communities served by our clinics.


Today, TAH works alongside a broad network of aged residential care facilities, general

practices and healthcare partners across New Zealand. Our role is to provide reliable,

clinically led services in environments where continuity, responsiveness and coordination

matter.


The need for this work continues to grow. New Zealand’s ageing population, increasing

clinical complexity and ongoing pressure across the wider health system are placing

greater demands on primary care and aged care providers. TAH’s model is designed to

help meet that need through practical, consistent and locally grounded clinical support.


Our general practices in Auckland and Hawke’s Bay continue to provide accessible care

and maintain trusted relationships within their communities.


Across the organisation, our clinicians and support teams remain central to our

performance. Their professionalism and consistency underpin the quality and continuity

of care provided to patients every day.


As we mark our 15th anniversary, we reflect on a business that continues to evolve with

the needs of the people and communities it serves. The foundations of TAH remain

unchanged: trusted relationships, reliable service delivery and a commitment to

improving healthcare for older New Zealanders.

4

Financial Highlights $'000
Third Age Health and Controlled Entities

H1H2

%

Change

FY26 FY25

YOY %

Change

Revenue10,65311,835+11.1%22,48819,081+17.9%

Underlying EBIT2,5392,752+8.4%5,2914,269+23.9%

Underlying EBIT Margin23.8%23.3%-0.5%23.5%22.4%+1.1%

Underlying NPBTA

1

2,3672,552+7.8%4,9203,908+25.9%

Underlying NPBTA%

1

22.2%21.6%-0.6%21.9%20.5%+1.4%

Underlying NPATA

2

1,7421,891+8.6%3,6342,886+25.9%

Underlying NPATA%

2

16.4%16.0%-0.4%16.2%15.1%+1.1%

Statutory NPAT1,5201,571+3.4%3,0912,478+24.7%

Statutory NPAT%14.3%13.3%-1.0%13.7%13.0%+0.7%

Diluted Earnings Per Share14.4414.16+0.4%28.3822.74+24.8%

Ordinary Dividends Per Share

(cents)

8.008.000.0%16.0014.71+8.8%

Return on Equity (TTM)62.9%55.9%-7.0%55.9%60.9%-4.9%

Return on Capital Employed (TTM)41.5%44.1%+2.6%44.1%42.8%+1.3%

FY26 FINANCIAL SUMMARY

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

1

Underlying NPATA (Net Profit After Tax before Amortisation) is adjusted for non-cash amortisation charges arising as a result of purchase

accounting rules.

2

5

Letter to Shareholders
Dear Fellow Shareholders,

This year marks 15 years since Third Age Health was founded. It all began with a simple

conversation: Founder, Bevan Walsh, listened to a potential customer describe a real-

world problem in aged care and took immediate action to solve it. That act of listening

and doing created the foundation for the company you own today.


That same mindset of noticing what isn't working for customers and taking ownership to

resolve it remains our core operating philosophy, or as we call it, the Third Age Way of

Working (TAWoW). This is our application of Kaizen, focusing on continuous,

incremental improvements driven by the staff closest to the customer, right at gemba,

where the actual work happens.

While our business has always incorporated elements of decentralisation, during the

year we took steps to deepen this by creating two distinct business units, ARC Medical

Services (“ARC”) and Community General Practice (“Community GP”), and establishing

dedicated General Manager roles with the autonomy to lead them, and with incentives

tied directly to their performance.

In our ARC business, this structure has been successful. Niomi Fleming, who initially

stepped into the acting role, has been appointed permanent General Manager. Under

her leadership, this business has executed with strong discipline and a sharp focus on

delighting customers. Since this letter was prepared, Niomi has advised that she will step

down from her role as General Manager of the ARC business for health reasons at the

end of July. Niomi remains in the role during the transition period, and we are grateful for

her leadership and contribution.

Our Community GP business has been more difficult. As the patient numbers will show,

we continued to lose ground. This underperformance required leadership changes to

ensure we have management in place with the urgency required to stabilise operations.

Financial Performance

Our financial results reflect a business that, despite several challenges, has retained

operating leverage. For the full year, Net Profit After Tax (NPAT) rose by 24.7% to

$3.091 million YOY, and underlying NPATA increased by 25.9% to $3.634 million.

Our ARC business delivered meaningful gains in both revenue and profit. Revenue rose

by 27% to $14.921 million, and our enrolled patient base in this division grew to 7,138.

6

However, margin in this business declined slightly this year as we prioritised delivering
high quality care in the face of workforce shortages. That margin compression was a

deliberate choice. We incurred additional expense to secure clinical coverage, workforce

recruitment, development, and digital enablement, choosing to trade a short-term margin

percentage for long-term durability.

Revenue in our Community GP business rose slightly by 3.2% to $7.567 million, and

overall profitability improved. However, our enrolled patient numbers declined by 4.8% to

19,383 YOY. This decline was driven by doctor departures and clinical vacancies.

Operating with fewer doctors than needed temporarily reduces wage costs but earnings

resulting from this are unsustainable. While those specific vacancies have now been

filled, we are not satisfied with a shrinking patient roster. We are expending all efforts to

remedy this and every choice we make is evaluated through the lens of maximising

intrinsic value per share.

Operating Environment

While the underlying demand for aged residential care and primary care continues to

grow, driven by an ageing population and the increasing complexity of care patients

require, the broader system is struggling to keep up.

As we wrote last year, the impact of workforce shortages, funding constraints, and

increasing administrative demands was intensifying, and we did not expect that pressure

to ease in the short term. It has not. Our primary operational risk remains the supply of

clinical talent. The sector-wide shortage of practitioners is acute, bringing with it all the

inevitable operational consequences. Although we have managed to navigate these

shortages and fill our vacancies to date, failing to do so in the future would directly lead

to a loss of business.

Beyond staffing constraints, the daily social reality of operating Community GP facilities

is complex. We experienced this firsthand this year at our Belmont Medical Centre

practice.

Belmont was a very small practice we had acquired. Recently, incidents with disruptive

patients made our small team there feel unsafe. This highlighted a real vulnerability for

us. A very small practice lacks the safety in numbers that you get at a much larger

practice. We have an absolute obligation to keep our team and patients safe, but the

economics of hiring permanent security simply did not work.

Faced with an unsafe environment and a fix that made no financial sense, we took

immediate action to close the physical Belmont site and merge it into our larger

Devonport practice. This gave our staff the security of a larger team. While the transition

inevitably resulted in some patient attrition, it was a necessary decision. It also served as

a clear reminder of the operational fragility of acquiring very small practices. This

situation highlights one of the reasons why we do not allocate capital to acquiring

additional community practices.

7

Capital Allocation and Quality Shareholders
We think and act like owners because we are. Most of our directors hold meaningful

stakes in the company. For some of us, including myself, this represents a significant

commitment of our personal net worth, alongside the capital of our friends and family.

This, along with our very long time horizon, significantly influences how we think about

allocating capital and diversifying the earnings power of the company.

Over the past year, the quoted price of our shares has been volatile, swinging between

roughly $2.50 and $7.50. Neither of these prices was a realistic assessment of per-share

intrinsic value. Our strong preference is for our shares to trade in a tight range around

intrinsic value. This is because we would like exiting partners to receive, and new

partners to pay, a fair price for their shares. We do not have a "higher is better" attitude,

and our focus will always be on maximising the average annual rate of increase in

intrinsic value per share.

While we cannot control the share price, we aim to influence it by attracting quality

shareholders who focus on long-term progress in intrinsic value, rather than short-term

share price movements. These shareholders are aligned with the kind of decisions we

make and the multi-decade period we are aiming to compound per-share value over, and

we are pleased to have had several more choose to partner with us.

In terms of deploying capital today, apart from investments in improving services to our

customers, our bias is heavily weighted toward acquiring good businesses that we

understand, at satisfactory returns on capital. As we detailed in our half-year report, we

successfully executed on this by acquiring ARC Health and Cicada Health, two

businesses that fit perfectly within our core ARC platform. We continue to work on

additional acquisitions in this space.

Also, over the year, we engaged with a number of potential acquisition targets outside of

healthcare, including services businesses in the life safety, compliance, and

maintenance, repair, and operations sectors. In some instances, our discussions

advanced to the point of submitting term sheets; however, none of these came to fruition

as ultimately, they did not satisfy all our criteria.

Outlook

We expect the operating environment to remain difficult. Workforce shortages and cost

pressures are a fact of life, and we are not expecting any near-term relief.

Our priority for FY27 is to build upon the progress made in FY26 by doing the things that

are within our control. We will continue to sharpen our operational discipline through

TAWoW, invest in delighting our customers and supporting our frontline clinical teams,

while remaining frugal.

8

Alongside this operational focus, our search for good businesses to acquire continues
with energy. We are looking for businesses that provide mission critical services or

products, with recurring and predictable revenue, a demonstrated ability to generate free

cash flow and earn returns on tangible capital in line with our expectations. If you know of

a high-quality business that meets these standards, or if you are a founder looking for a

safe home for your business, please reach out to us.

Acknowledgements

None of our progress is possible without the commitment of our people. I want to thank

our clinical, operational, and management teams for their dedication this year,

particularly in a challenging environment.

I also want to thank our customers for their continued partnership. Finally, thank you to

you, our shareholders. Our goal is to be good stewards of the capital you have entrusted

us with.

Sincerely,

John Fernandes

Executive Chairman

9

Built Around the Needs
of Aged Care

Reflecting on 15 years of service

As Third Age Health (TAH) marks its 15th anniversary, we reflect on a journey that

began with a simple conversation.

In the organisation's early days, discussions with aged residential care providers

revealed a challenge being experienced across the sector. While facilities worked

tirelessly to support their residents, access to consistent, around the clock high-quality

primary medical care often varied, creating uncertainty for residents, families and care

teams.

For Founder and Board Director, Bevan Walsh, these conversations highlighted an

opportunity to make a practical meaningful difference.

"The more people I spoke with, the clearer it became that this wasn't an isolated issue.

Facilities were doing their best, but many were facing the same challenges. I heard

them and set about creating a robust, consistent, dependable service that is truly

responsive to their needs, taking burdens from their shoulders by having our

organisation take on the responsibility for providing their primary care service. Facility

operators’ enthusiasm for this was immediately obvious”.

The earliest model centred on providing dedicated practitioner support and after-hours

cover to a small number of aged residential care facilities. Simple in concept, those

early partnerships became important learning opportunities.

By listening to residents, families, nurses, facility managers and clinicians, TAH

developed a deeper understanding of the operating realities within aged residential care

facilities, and of what is required to deliver reliable primary care in that environment.

10

One of the most important early learnings was that quality care requires more than
clinical expertise. It depends on continuity, responsiveness, collaboration, and a genuine

understanding of the environments in which residents live.

As trust grew, so too did the opportunity to support more providers and communities.

Many of the organisation's earliest partners shared a willingness to work differently and

to address longstanding challenges in the delivery of primary care within aged residential

care. Their collaboration helped establish the foundations on which TAH continues to

build today.

The organisation we see today has been shaped by many people: providers who shared

their challenges, clinicians who committed themselves to the care of older New

Zealanders, and leaders and teams who believed there was a better way to deliver

healthcare. Their expertise and, commitment have helped extend TAH’s reach and

strengthen our services, while keeping the organisation grounded in the needs of the

people it serves.

While TAH now delivers care at a very different scale, the original purpose of our ARC

Medical Services business remains clear. As New Zealand's population ages and

demand for healthcare services grows, the need for reliable, coordinated, around-the-

clock primary care for older people is as relevant today as it was when the organisation

began.

11

New Zealand’s population is ageing, creating a long-term increase in demand for
healthcare services designed around the needs of older people.

The proportion of New Zealanders aged 65 and over has increased materially over recent

decades and is projected to continue rising. At the same time, the ratio of older people to

the working-age population is also expected to increase, placing additional pressure on

healthcare delivery, aged residential care and the broader primary care workforce.

These demographic trends are contributing to more frequent and complex care needs

across primary, specialist and hospital settings. For aged residential care providers, this

reinforces the importance of reliable clinical support, strong coordination and continuity of

care.

TAH’s work sits directly within this structural need. By supporting aged residential care

facilities and operating general practices in local communities, the organisation is

positioned to contribute practical capacity and clinical expertise in areas of growing

demand.

Responding to an Ageing Population

Strengthening Foundations,

Expanding Impact

12

2024
100 working-age people


25 older people


2078

100 working-age people


43–57 older people

The proportion of New

Zealanders aged 65 and over

increased from 12.3% in 2006 to

16.6% in 2023 and is projected

to reach around 28% by 2073

(EHINZ, based on Stats NZ

projections).

The 65+ dependency ratio,

which measures the number of

people aged 65 and over for

every 100 people of working

age, is also projected to rise

from approximately 25 per 100

in 2024 to between 43 and 57

per 100 by 2078 (Stats NZ).

65 years and over85 years and over

202020232028203320382043204820532058206320682073

0

5

10

15

20

25

30

Years

% of total population

Source: Statistics NZ population projections, by age and sex (50th percentile projections), 2020 (base) –2073

Projected older adult population, as a percentage of the total population in

New Zealand, 2020-2073

13

From Left: Excellence in Action Award Recipients receiving acknowledgement. Donelle Thompson and
Charisma Salabe, Paula Draper, Jill Skinner and Niomi Fleming

The Team Behind the Care

The quality of TAH’s services depends on the people delivering them. During the year,

we introduced the Excellence in Action Awards to recognise team members who

demonstrate our values and contribute to better outcomes for patients, residents,

clients and colleagues.

Two recognition rounds were completed during the year, attracting strong participation

from across the organisation. The nominations highlighted the many ways our people

contribute beyond their core roles to support quality care, collaboration and continuous

improvement.

Members of our clinical and leadership teams also contributed to Health Informatics

New Zealand’s eHealthTALK NZ podcast series, sharing perspectives on digital tools,

artificial intelligence and the future of healthcare delivery in aged residential care.

These contributions provided an opportunity to discuss the role of technology in

supporting clinical workflows, risk identification, workforce development and improved

coordination of care. They also reflected TAH’s growing contribution to national

conversations about healthcare for older New Zealanders.

14

OUR Team
Third Age Health Team Highlights

Clockwise Top Left: TAH Team at GPCME Rotorua, Women’s Health Week Pop up clinic Selwyn Village, Devonport

Family Medicine merged team, TAH End of Year Gathering - Ceramic painting, Nurse Practitioner Pathway graduates

and TAH Team ACA Conference Christchurch.

15

Our Board
Founder & Non-Executive Director | Appointed November 2010

Bevan founded Third Age Health with the goal of revolutionising the

way that medical services are delivered to people in New Zealand

aged residential care facilities. He is deeply committed to ensuring

that Third Age Health delivers its services innovatively and intelligently.

Bevan Walsh

Executive Chairman | Appointed February 2019

John is CFO of Ruminant BioTech. He has experience in strategy,

finance and continuous improvement within financial services, telco,

media and technology businesses in NZ. John has held roles at

MacroActive, Spark, MediaWorks, NZX, Elevation Capital and

Goldman Sachs JBWere, and holds a Master of Business

Administration from The University of Auckland.

John Fernandes

Independent Director | Appointed December 2023

Steffan is a transformative leader in healthcare, with experience as a

pharmacist and CEO. As the former CEO of Tāmaki Health Group,

he enhanced operating profits and developed telehealth options

during the COVID-19 crisis. Before Tāmaki, Steffan led Pharmac.

Steffan Crausaz

Wayne Williams

Independent Director | Appointed June 2021

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

experience within the health sector. He has worked in line

management and consulting roles within primary care, DHBs and the

Ministry of Health, and he was most recently the CEO of Alliance

Health Plus Trust.

16

CONSOLIDATED FINANCIAL STATEMENTS
Third Age Health Services Limited

and subsidiaries

For the year ended 31 March 2026

Third Age Health Services Limited
Directors’ responsibility statement


18



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

shareholders the Consolidated Financial Statements for Third Age Health Services Limited and its

subsidiaries (“the Group”) for the year ended 31 March 2026.


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

law and generally accepted accounting practice, which present fairly in all material respects the

financial position of the Group as at 31 March 2026 and the results of its operations and cash flows

for the year ended on that date.


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

which have been consistently applied and supported by reasonable judgements and estimates and all

relevant financial reporting standards have been followed.


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

accuracy the determination of the financial position of the Group and facilitate compliance of the

Financial Statements with the Companies Act 1993, NZX Listing Rules and Financial Markets

Conduct Act 2013.


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

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

be sufficient to provide a reasonable assurance as to the integrity and reliability of the Financial

Statements.



The Consolidated Financial Statements presented are signed on behalf of the Board on 26 June 2026

by:








John Samuel Ronny Fernandes

Executive Chairman

Wayne Geoffrey Williams

Audit Committee Chair




Third Age Health Services Limited
Consolidated statement of profit or loss and other comprehensive income

For the year ended 31 March 2026



19



2026 2025


Notes $000 $000

Revenue 4 22,488 19,081

Cost of services 5 (11,400) (9,181)

Gross profit


11,088 9,900



Other income


50 58



Employees and contractors 7 (3,172) (3,302)

Professional and consulting fees 8 (645) (523)

Other expenses 9 (1,574) (1,455)

Operational expenses


(5,391) (5,280)



EBITDA


5,747 4,678



Amortisation and depreciation 10 (1,067) (841)

Finance costs 11 (303) (337)



Profit before income tax


4,377 3,500



Income tax expense 13 (1,286) (1,022)



Profit for the period


3,091 2,478



Other comprehensive income


- -



Total comprehensive income for the period


3,091 2,478



Profit and total comprehensive income attributable to:


Shareholders of the parent


2,825 2,339

Non-controlling interests 27 266 139



Profit for the year


3,091 2,478



Earnings per share 15


Basic earnings per share (cents)


28.38 23.43

Diluted earnings per share (cents)


28.38 22.74






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

Third Age Health Services Limited
Consolidated statement of changes in equity

For the year ended 31 March 2026



20





Share

Capital

Share-

Based

Payments

Reserve

Retained

Earnings

Non-

controlling

Interest Total


Notes $000 $000 $000 $000 $000

Balance at 1 April 2024


596 657 1,704 (44) 2,913

Profit for the year


- - 2,339 139 2,478

Total comprehensive income for

the year


- - 2,339 139 2,478


Dividend 14 - - (1,351) (116) (1,467)

Share buyback 24 (111) - - - (111)

Transfer - (634) 634 - -

Share-based payments 25.2 - 8 - - 8

NCI on acquisition - - - 146 146

Balance at 31 March 2025


485 31 3,326 125 3,967


Balance at 1 April 2025


485 31 3,326 125 3,967

Profit for the year


- - 2,825 266 3,091

Total comprehensive income for

the year


2,825 266 3,091



Dividend 14 - - (1,586) (200) (1,786)

Share-based payments 25.2 (31) - - (31)

Other Adjustments - - - 16 16

NCI on acquisition - - - 250 250

Balance at 31 March 2026


485 - 4,565 457 5,507

















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

Third Age Health Services Limited
Consolidated statement of financial position

For the year ended 31 March 2026



21



2026 2025

Notes $000 $000

Current assets



Cash and cash equivalents

16 2,901 2,594

Trade and other receivables

17 1,219 1,059

Other assets

134 104

Accrued revenue

77 40

Total current assets


4,331 3,797




Non-current assets



Property, plant and equipment


212 189

Right-of-use-assets

18 1,975 2,181

Intangible assets

19 6,673 4,773

Financial assets


20 20

Total non-current assets


8,880 7,163




Total assets


13,211 10,960




Current liabilities



Trade and other payables

21 2,563 1,882

Employee benefits

516 432

Provisions

22 22

Tax liabilities


588 648

Bank Loan

23, 29 63 59

Lease liabilities

18 368 330

Total current liabilities


4,120 3,373



Non-current liabilities



Bank loan 23, 29 1,029 1,091

Other payables 21 - 6

Lease liabilities 18 1,887 2,094

Deferred tax liability 13.2 668 429

Total non-current liabilities


3,584 3,620



Total liabilities


7,704 6,993



Net assets


5,507 3,967

Equity



Share capital

24 485 485

Share-based payment reserve


- 31

Retained earnings


4,565 3,326

Equity attributable to the parent


5,050 3,842




Non-controlling interests

27 457 125



Total equity


5,507 3,967


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

Third Age Health Services Limited
Consolidated statement of cash flows

For the year ended 31 March 2026



22




2026 2025


Notes $000 $000

Cash flows from operating activities



Receipts from customers


25,888 22,112

Payments to suppliers and employees


(20,077) (17,245)

Interest received


21 43

Interest paid


(247) (331)

Income taxes paid


(1,559) (878)

Net cash flows provided by operating activities 12 4,026 3,701



Cash flows from investing activities



Payments for purchase of property, plant and equipment


(83) (116)

Investment in developing intangible assets (113) (36)

Acquisition of business, net of cash acquired


(1,343) (572)

Net cash flows used in investing activities


(1,539) (724)



Cash flows from financing activities



Shares acquired


- (111)

Loan repayments on bank borrowings


(666) (790)

Payment of lease liabilities 18 (335) (308)

Dividend paid 14 (1,586) (1,351)

Dividend paid to NCI 14 (200) (116)

Proceeds from borrowings 20.1 607 598

Net cash flows used in by financing activities


(2,180) (2,078)



Net increase in cash and cash equivalents


307 899



Cash and cash equivalents at the beginning of the period


2,594 1,695

Cash and cash equivalents at the end of the period


2,901 2,594













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

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



23


1. Reporting entity

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

subsidiaries (the “Group”). The Parent is incorporated and domiciled in New Zealand and registered

under the Companies Act 1993. The parent’s shares are publicly traded on the New Zealand Stock

Exchange (NZX) and are listed on the main board of the NZX. The principal trading activity of the

Group is the provision of medical services to the aged care sector. Those companies included in the

Group are disclosed in note 26.1.

The Consolidated Financial Statements of the Group are for the year ended 31 March 2026. The

Financial Statements were authorised for issue by the Directors as dated in the Directors’

Responsibility Statement.

2. Statement of accounting policies


2.1. Basis of preparation


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

Accounting Practice (“NZ GAAP”). They comply with the New Zealand equivalents to International

Financial Reporting Standards (“NZ IFRS”) and other applicable Financial Reporting Standards, as

appropriate. These Financial Statements comply with International Financial Reporting Standards

(“IFRS”) as published by the International Accounting Standards Board. For the purposes of

complying with NZ GAAP, the Group is a for-profit entity. These Financial Statements have been

prepared in accordance with the Financial Markets Conduct Act 2013.


2.2. Basis of measurement


Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where

applicable, the revaluation of financial assets and liabilities at fair value through profit or loss and

financial assets at fair value through other comprehensive income, and certain classes of property,

plant and equipment.


Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It

also requires management to exercise its judgement in the process of applying the Company’s

accounting policies. The areas involving a higher degree of judgement or complexity, or areas where

assumptions and estimates are significant to the financial statements, are disclosed in note 3.


2.3. Basis of consolidation


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

entities controlled by the Company and its subsidiaries. Control is achieved when the Company:

• has power over the investee

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

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

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



24


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

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

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

accounting policies into line with the Group’s accounting policies.


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

between members of the Group are eliminated in full on consolidation.


2.4. Functional and presentational currency


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

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

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

in New Zealand Dollars (NZD), rounded to thousands, which is the functional currency of the

Company and the presentation currency for the consolidated Financial Statements.


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


2.5. Goods and services tax (GST)


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

(GST) except:

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

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

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

recoverable from or payable to the taxation authority is included as part of receivables or

payables).


2.6. Financial instruments


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

contractual provisions of the instruments.

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

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

financial assets and financial liabilities at fair value through profit or loss) are added to or deducted

from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair

value through profit or loss are recognised immediately in profit or loss.


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

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

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

time of initial recognition.


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

receivables.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



25


Financial assets – Cash and short-term deposits

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

maturity of three months or less.


Financial assets – Trade and other receivables

Trade receivables are non-derivative financial assets and measured at amortised cost using the

effective interest method less expected credit and loss allowance. Impairment of trade receivables is

recorded through a loss allowance account - Expected Credit Loss (ECL). The amount of the loss

allowance is based on the NZ IFRS 9 simplified ECL approach which involves the Group estimating

the lifetime ECL at each balance date. The lifetime ECL is calculated using a provision matrix based

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

the economic environment.


Financial assets – Related party receivables

Related party receivables are measured at amortised cost net of any impairment related to credit

losses.


Financial liabilities and equity instruments

Financial liabilities and equity instruments – Equity instruments

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

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

received, net of direct issue costs.


Financial liabilities and equity instruments – Financial liabilities

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

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

effective interest method.


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

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

exactly discounts estimated future cash payments (including all fees and points paid or received that

form an integral part of the effective interest rate, transaction costs and other premiums or discounts)

through the expected life of the financial liability, or (where appropriate) a shorter period, to the net

carrying amount on initial recognition.


Financial liabilities and equity instruments – Derecognition of financial liabilities

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

discharged, cancelled or they expire. The difference between the carrying amount of the financial

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


Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



26


2.7. Business combinations


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

transferred in a business combination is measured at fair value, which is calculated as the sum of the

acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to

the former owners of the acquiree and the equity interests issued by the Group in exchange for

control of the acquiree. Acquisition-related costs are recognised in profit or loss as incurred.


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

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

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

taxes and NZ IAS 19 Employee benefits respectively.


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

non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity

interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets

acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of

the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration

transferred, the amount of any non-controlling interests in the acquiree and the fair value of the

acquirer’s previously held interest in the acquiree (if any), the excess is recognised immediately in

profit or loss as a bargain purchase gain.


2.8. Current and non-current classification


Assets and liabilities are presented in the Statement of Financial Position based on current and non-

current classification.


An asset is classified as current when: it is either expected to be realised or intended to be sold or

consumed in the company’s normal operating cycle; it is held primarily for the purpose of trading; it is

expected to be realised within 12 months after the reporting period; or the asset is cash or cash

equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months

after the reporting period. All other assets are classified as non-current.


A liability is classified as current when: it is either expected to be settled in the company’s normal

operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months

after the reporting period; or there is no unconditional right to defer the settlement of the liability for at

least 12 months after the reporting period. All other liabilities are classified as non-current.


Deferred tax assets and liabilities are always classified as non-current.



2.9. Issued Capital


Ordinary shares are classified as equity.


Incremental costs directly attributable to the issue of new shares or options are shown in equity as a

deduction, net of tax, from the proceeds.


Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



27


2.10. Dividends


Dividends are recognised when declared during the financial year and no longer at the discretion of

the company.


2.11. Employee benefits


Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service

leave expected to be settled wholly within 12 months of the reporting date are measured at the

amounts expected to be paid when the liabilities are settled.


Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they

are incurred.


2.12. Provisions


Provisions are recognised when the Company has a present (legal or constructive) obligation as a

result of a past event, it is probable the company will be required to settle the obligation, and a reliable

estimate can be made of the amount of the obligation. The amount recognised as a provision is the

best estimate of the consideration required to settle the present obligation at the reporting date,

considering the risks and uncertainties surrounding the obligation. If the time value of money is

material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in

the provision resulting from the passage of time is recognised as a finance cost.


2.13. Changes in accounting policies


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

audited Consolidated Financial Statements of the Group for the year ended 31 March 2025.



2.14. Standards issued but not yet effective


There are new or amended accounting standards mandatory effective 1 January 2026 which the

Group did not adopt earlier.


Amendments to NZ IFRS 1, 7, 9, 10 and IAS 7 – Annual Improvements to NZ IFRS 2024.

Amendments to NZ IFRS 7, 9 – Amendments to the classification of financial instruments


The Group is yet to assess the full impact of these new standards or amendments issued but not due

for adoption by the Group until 1 April 2026 or later. However, they are not at this stage expected to

have a material impact on the Group.


IFRS 18 - Presentation and Disclosure in Financial Statements replacing NZ IAS 1 for periods

beginning or after 1 January 2027.


There is no expected material impact to the Group from the adoption of this standard. The standard is

aimed at creating greater consistency in the preparation of the Consolidated Financial Statements

across entities and providing more granular information. We expect changes to how we present

certain items in the FY28 Consolidated Financial Statements which will retrospectively affect the

comparison period of FY27 when the FY28 statements are released.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



28


3. Use of accounting estimates and judgements


The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the reported amounts in the financial statements. Management continually

evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue

and expenses. Management bases its judgements, estimates and assumptions on historical

experience and on other various factors, including expectations of future events, management

believes to be reasonable under the circumstances. The resulting accounting judgements and

estimates will seldom equal the related actual results. The judgements, estimates and assumptions

that have a significant risk of causing a material adjustment to the carrying amounts of assets and

liabilities (refer to the respective notes) within the next financial year are discussed below.


• Carrying value of intangible assets (note 19)

The company assesses the carrying value at each reporting date of goodwill allocated to each cash

generating unit by value-in-use calculations which require the use of assumptions. These

assumptions include discount rate, terminal growth rate and EBITDA growth as disclosed in note 19

and are based on Company’s best estimate at the date of preparation.


• Expected Credit Loss (ECL)

The allowance for expected credit losses assessment requires a degree of estimation and judgement.

It is based on the lifetime expected credit loss, grouped based on days overdue, and makes

assumptions to allocate an overall expected credit loss rate for each group. These assumptions

include recent sales experience, historical collection rates and forward-looking information that is

available. The allowance for expected credit losses, as disclosed in note 17, is calculated based on

the information available at the time of preparation. The actual credit losses in future years may be

higher or lower.


• Estimation of useful life of assets

The company determines the estimated useful lives and related depreciation and amortisation

charges for its property, plant and equipment and finite life intangible assets. The useful lives could

change significantly as a result of technical innovations or some other event. The depreciation and

amortisation charge will increase where the useful lives are less than previously estimated lives, or

technically obsolete or non-strategic assets that have been abandoned or sold will be written off or

written down.


• Lease term

The lease term is a significant component in the measurement of both the right-of-use asset and

lease liability. Judgement is exercised in determining whether there is reasonable certainty that an

option to extend the lease or purchase the underlying asset will be exercised, or an option to

terminate the lease will not be exercised, when ascertaining the periods to be included in the lease

term. In determining the lease term, all facts and circumstances that create an economical incentive

to exercise an extension option, or not to exercise a termination option, are considered at the lease

commencement date. Factors considered may include the importance of the asset to the company’s

operations; comparison of terms and conditions to prevailing market rates; incurrence of significant

penalties; existence of significant leasehold improvements; and the costs and disruption to replace

the asset. The company reassesses whether it is reasonably certain to exercise an extension option,

or not exercise a termination option, if there is a significant event or significant change in

circumstances.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



29


• Incrementation borrowing rate

Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate

is estimated to discount future lease payments to measure the present value of the lease liability at

the lease commencement date. Such a rate is based on what the company estimates it would have to

pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use

asset, with similar terms, security and economic environment.


• Purchase Price Allocation

The fair value of assets recognised at the acquisition date has been determined using a valuation

approach based on expected future economic benefits, applying a discounted cash flow methodology

consistent with a value-in-use framework. This assessment required significant judgement and

estimation, including the identification and separation of cash flows attributable to the intangible asset,

the determination of appropriate forecast growth rates, operating margins and useful lives, and the

selection of an appropriate discount rate reflecting the risks specific to the asset. Please see note

19.3 and 20.1 for further details.



4. Revenue recognition


4.1. Revenue from contracts with customers


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


Consultation revenue

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

performed is a separate performance obligation satisfied at a point in time. The price for each

consultation is a fixed amount based on an agreed rate card with the customer. Revenue is

recognised once the consultation service has been provided. Revenue claims from contracts like ACC

and MOH (General medical, maternity and immunisation claims) with customers is measured at the

fair value of the consideration received or receivable and may be reduced for rebates and other

similar allowances.


Capitation revenue

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

Organisations (PHOs). This capitation revenue is recognised monthly based on the number of

enrolled patients and the agreed rate for the particular patient. The agreed rate will be affected by the

characteristics of the patient, for example, their age or gender. Revenue is recognised on an over

time basis measured on a time lapsed basis.


Other 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.


Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



30


Revenue from contracts with customers


2026

2025


$000 $000

Capitation revenue



Aged medical care services 4,350 3,156

General practice medical services 4,368 4,115




Consultation revenue


Aged medical care services 10,472 8,389

General practice medical services 2,690 2,712




Other revenue


Aged medical care services 99 207

General practice medical services 509 502


Total revenue from contracts with customers 22,488 19,081


Geographical information


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

Zealand only.


Timing of revenue recognition



2026 2025


$000 $000

Revenue recognised at point in time basis

13,770 11,810

Revenue recognised on a time lapsed basis

8,718 7,271




22,488 19,081



Information about major customers

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

customers.

The Group derived revenue from the following significant customer:


2026

2025


$000 $000

Customer 1

2,948 2,759


No other single customers contributed 10% or more to the Group’s revenue for both 2026 and 2025.


Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



31


5. Cost of services


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

direct costs.



2026 2025


$000 $000

Practitioners (GP’s and nurses) 11,123 8,927

Defined contribution (KiwiSaver)

73 29

Medical supplies 204 225

Total for cost of services 11,400 9,181




6. Segment information


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


The segment results disclosed are based on those reported to the CEO and are how the Group

reviews its performance. The Group's reportable segments are as follows:

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

care sector.

• General practice medical services, being the provision of primary care services to the community.



6.2. Segment revenues and results


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

segment:


Segment revenue 2026 2025


$000 $000

Aged medical care services 14,921 11,752

General practice medical services 7,567 7,329

Total for continuing operations 22,488 19,081


Segment profit before tax 2026 2025


$000 $000

Aged medical care services 3,595 2,816

General practice medical services 782 684

Total for continuing operations 4,377 3,500



Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



32


Segment profit includes the following items:


For the year ended 31 March 2025 Aged care General practice


medical services medical services


$000 $000

EBITDA 2,968 1,710

Depreciation (21) (388)

Amortisation of intangibles (105) (327)

Interest expense on leases - (186)

Interest on bank Loan (26) (125)

Profit before tax 2,816 684



Income tax expense (895) (127)

Profit for the period 1,921 557



For the year ended 31 March 2026 Aged care General practice

medical services medical services

$000 $000

EBITDA 3,997 1,750

Depreciation (62) (394)

Amortisation of intangibles (283) (328)

Interest expense on leases (7) (164)

Interest on bank Loan (2) (82)

Interest on deferred consideration (48) -

Profit before tax 3,595 782


Income tax expense (1,139) (147)

Profit for the period 2,456 635



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

and interest expenses.



6.3. Segment assets and liabilities


Segment assets 2026 2025


$000 $000

Aged medical care services incl support functions 6,797 4,091

General practice medical services 9,633 8,416

Total segment assets 16,430 12,507




Intercompany elimination (3,219) (1,547)

Total segment assets 13,211 10,960

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



33


Segment liabilities

2026


2025


$000 $000

Aged medical care services including support functions 6,690 3,200

General practice medical services

4,233 5,340

Total segment liabilities

10,923 8,540




Intercompany elimination (3,219) (1,547)

Total segment liabilities

7,704 6,993




7. Employees and contractors



2026

2025


Note

$000 $000

Salaries and wages


2,619 2,664

Short term incentives


130 279

Defined contribution (KiwiSaver)


115 131

Share based payments expense

25.2

(37) 13

Employee benefit expense


2,827 3,087





Contractors


345 215



3,172 3,302


The above excludes clinical employee and contractor costs included in cost of services.

8. Professional and consulting fees


2026 2025


$000 $000

Fees payable to auditor 94 104

Accounting and taxation services 83 55

Legal expenses 170 54

Directors' fees 180 180

Listing and share registry costs 48 38

Other consultancy costs 70 92

645 523





Fees payable to our auditor Vikas Gupta of UHY Haines Norton, of $94k relate to fees for the annual

audit of the Consolidated Financial Statements (2025: $104k). UHY Haines Norton does not perform

other assurance or non-assurance services.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



34


9. Other expenses



2026

2025


$000 $000

Technology / IT


849 720

Marketing & PR


34 24

Travel & entertainment



45 42

Professional operational services


252 212

Office and General


394 457



1,574 1,455


10. Amortisation and depreciation




Note

2026

2025


$000 $000

Depreciation on right of use assets

18

372 362

Depreciation on plant, property and equipment


84 47

Amortisation of acquired intangibles

19.3

543 408

Amortisation of software

19.3

68 24



1,067 841


11. Finance costs



2026

2025


$000 $000

Interest expense on leases 171 186

Interest on bank Loan 84 151

Interest on deferred consideration 48 -


303 337


12. Reconciliation of profit for the year to net cash from

operating activities



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






2026

2025


$000 $000

Profit before income tax 4,377 3,500




Adjustments to reconcile profit before tax to net cash flows:


Depreciation 456 409

Amortisation of intangibles 611 432

Share-based payments expense (37) 13

Other non-cash adjustments 4 8

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



35


2026

2025


$000 $000

Working capital adjustments:


(Increase)/decrease in trade and other receivables (160) (284)

(Increase)/decrease in other assets (30) (23)

(Increase)/decrease in accrued revenue (37) 279


Increase/(decrease) in trade and other payables


674 294

Increase/(decrease) in employee benefits 84 96


Non-operating working capital adjustment (333) (162)

Impact of working capital acquired (24) 17


5,585 4,579

Income tax paid (1,559) (878)




Net cash from operating activities 4,026 3,701



13. Taxation


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


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

recognised in other comprehensive income or directly in equity, in which case, the current and

deferred tax are also recognised in other comprehensive income or directly in equity respectively.

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax

effect is included in the accounting for the business combination.


Tax expense comprises:


2026

2025


$000 $000

Current income tax

1,414 1,205

Deferred income tax

(130) (201)

Benefit of timing differences not previously brought into account

2 18

Total income tax expense recognised in the current year

1,286 1,022



Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



36


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




2026

2025


$000 $000

Profit before tax

4,377 3,500



Income tax expenses calculated at 28%

1,226 980



Effect of non-deductible expenses

58 24

Benefit of timing differences not previously brought into account

2 18

Total income tax expense recognised in the current year

1,286 1,022




13.2. Deferred tax



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

follow from the manner in which the Company expects, at the end of the reporting period, to recover

or settle the carrying amount of its assets and liabilities.


Deferred tax liability


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



2026 2025


$000 $000

Deferred tax asset 766 892

Deferred tax liability (1,434) (1,321)


(668) (429)




Deferred tax assets relate to:


Provisions and accruals 170 203

Lease Liabilities 596 689


766 892





Deferred tax liabilities relate to: 2026 2025

Right-of-use-assets (513) (614)

Intangible assets (921) (707)


(1,434) (1,321)



Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



37


The movement on deferred tax is summarised as follows.




Provisions

and

accruals

Right-of-

use-

assets

Leases

Intangible

assets

Totals


$000 $000 $000 $000 $000

Opening net deferred tax

asset/(liability)


203 (614) 689 (707) (429)

Additions through

acquisitions

- - - (367) (367)

Recognised in the profit and

loss


(33) 101 (93) 153 128

Closing net deferred tax

asset/(liability)


170 (513) 596 (921) (668)



13.3. Imputation credits


The Group had New Zealand imputation credits of $1,962,736 (2025: $1,237,945) available for use in

subsequent periods.

14. Dividends


Ordinary shares 2026 2025

$000 $000

Dividends to shareholders 1,586 1,351

Dividends to non-controlling interests of Group subsidiaries 200 116


1,786 1,467


Dividends declared and paid during the year ended 31

March 2026:

Cents per share $000

Interim dividend Q3 4.00 396

Interim dividend Q2 4.00 396

Interim dividend Q1 4.00 396

Final dividend for the year ended 31 March 2025 3.98 398


15.98

1,586


Dividends declared and paid during the year ended 31

March 2025:

Cents per share $000

Interim dividend Q3 3.90 388

Interim dividend Q2 3.55 355

Interim dividend Q1 3.28 328

Final dividend for the year ended 31 March 2024 2.80 280


13.53

1,351


Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



38


15. 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


2026

2025


$000 $000

Net profit attributable to the ordinary shareholders of the

parent

2,825 2,339

Earnings used in the calculation of basic earnings per

share

2,825 2,339


Weighted average number of shares used as the denominator


2026

2025


Shares Shares


000's 000's

Weighted average number of ordinary shares used as the

denominator in calculating basic earnings per share

9,954 9,985





Adjustments for calculation of diluted earnings per share:


Employee share options - 300




2026 2025

Shares Shares

000's 000's




Weighted average number of ordinary shares and

potential ordinary shares used as the denominator in

calculating diluted earnings per share

9,954 10,285



Share options issued under ESOP plans are considered as dilutive.


16. Cash and cash equivalents



2026 2025


$000 $000

Cash on hand and at bank

2,901 2,594


2,901 2,594

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



39


17. Trade and other receivables


Current


2026

2025


$000 $000

Trade receivables 1,265 1,107

Less provision for estimated credit loss (59) (59)


1,206 1,048

Other receivables 13 11

1,219 1,059


As at 31 March 2026 94% of the Group's trade receivables are current (2025: 93%). 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


2026

2025

2026

2025

2026

2025


$000 $000 $000 $000 $000 $000

Current (<30 days) 0% 0% 1,193 1,035 1 1

30 to 60 days 27% 31% 11 15 3 5

60 to 90 days 67% 74% 9 11 6 8

Over 90 days 94% 98% 52 46 49 45


1,265 1,107 59 59


18. Right of use assets and lease liabilities

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

leased asset is available for use by the Group. Each lease payment is allocated between the liability

and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a

constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-

use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line

basis (6-10 years).

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

liabilities include the net present value of the following lease payments:

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

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

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

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

and

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

that option.

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

determined, or the Group's incremental borrowing rate.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



40


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

• the amount of the initial measurement of lease liability.

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

received.

• any initial direct costs, and

• restoration costs.


Amounts recognised in the balance sheet


Right-of-use assets

2026

2025


$000 $000

Opening balance

2,181 2,514

Additions

155 -

Lease reassessments

11 29

Depreciation

(372) (362)

Closing balance

1,975 2,181


Lease liabilities

2026

2025


$000 $000

Opening balance

2,424 2,705

Additions

155 -

Lease reassessments

11 27

Interest

171 185

Lease repayments

(506) (493)

Closing balance

2,255 2,424

Current

368 330

Non-current

1,887 2,094


2,255 2,424


The group acquired ARC Health Limited on 01 September 2025 which had a pre-existing lease

predominately used by their administrative staff.


Amounts recognised in the statement of profit or loss


2026

2025


$000 $000

Depreciation of right-of-use assets

372 362

Interest expense (included in finance cost)

172 185

Short term office rent (included in office and general)

30 32

Variable lease (included in office and general & other expenses)

141 139


The total cash outflow for leases in the 12-month period ended March 2026 was $649k (2025: $632k).

The future minimum rentals payable under non-cancellable operating leases are $518k (2025: $844k)

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



41


19. Intangible assets


2026 2025


Notes $000 $000

Goodwill 19.1 3,143 2,078

Intangibles 19.3 3,530 2,695


6,673 4,773



19.1. 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.


2026 2025


Note $000 $000

Opening balance


2,078 1,651

Additions from acquisitions 20.1 1,065 427

Closing balance


3,143 2,078




Goodwill impairment


- -




Net carrying amount of goodwill


3,143 2,078


As at 31 March 2026 goodwill related to the age medical care services segment was $1,492k (FY25:

$427k) and goodwill related to the general practice medical services was $1,651k (FY25: $1,651k).

19.2. Impairment of goodwill

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

units (or groups of cash-generating units) that is expected to benefit from the synergies of the

combination.

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

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

of the cash-generating unit is less than its’ carrying amount, the impairment loss is allocated first to

reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the

unit pro-rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill

is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in

subsequent periods.

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

(HBWC), Belmont Medical Centre Limited (BMC), Ponsonby Medical (Third Age Health) Limited

(PMC), Devonport Family Medicine (Third Age Health) Limited (DFM), EastMed St Heliers Limited

(EastMed), Hub Aged Care Limited (HAC), Cicada Health Limited (CIC) and ARC Health Limited

(ARCH). Each individual acquisition is considered a Cash Generating Unit (CGU).



Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



42


The allocation of goodwill for each CGU is as follows:


2026 2025


$000 $000

Hawkes Bay Wellness Centre Limited (HBWC)

408 408

Ponsonby Medical (Third Age Health) Limited (PMC)

375 375

EastMed St Heliers Limited (EMSHL)

790 790

Hub Aged Care Limited (HAC)

427 427

Belmont Medical Centre Limited (BMC)

- 13

Devonport Family Medicine (Third Age Health) Limited (DFM)

- 65

Devonport Family Medicine (Third Age Health) Limited and

Belmont Medical Centre Limited (DFM/BMC)

78 -

Cicada Health Limited (CIC) (acquired on 1 September 2025)

566 -

ARC Health Limited (ARCH) (acquired on 1 September 2025)

499 -


3,143 2,078


During the financial year, we combined the practices of Belmont Medical Centre and Devonport

Family Medicine. The staff and patients at BMC moved to DFM. As such, all assets and liabilities

required for the CGU BMC have been shifted to DFM.

For the 2026 reporting period, the recoverable amount of the CGUs was determined based on value-

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

based on a financial forecast approved by the Board plus year 1 to 10 growth rate for the HBWC,

CICA, and ARCH CGUs. Actual FY26 results plus year 1 to 10 growth rate have been applied for all

other CGU’s. The most conversative approach has been taken as the base for each CGU, being

either the forecast or actual FY26.

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

out key assumptions within the forecast:


Discount rate (pre-tax)

22%-29% (2025: 16-18%)

Terminal growth rate 2% (2025: 3%)

Year 1 - 5 growth rate 2% (2025: 3%)


Assumption Approach used for determining values


Discount rate Based on the Company’s WACC calculated using CAPM modelling.

This has then been adjusted up for each CGU.

Terminal growth rate Based on historical long run inflation rate.

Year 1 - 10 growth rate Based on a more conservative management’s estimate of available growth in

patient base, historical results and industry standards.


If any one of the following changes were made to the above key assumptions, the carrying amount

and the recoverable amount would be equal.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



43





HBWC PMC DFM/BMC


EMSHL

HAC ARCH CICA


2026 2026 2026 2026 2026 2026 2026

Year 1 – 10

growth rate

No reasonably

possible

movement

Reduction from

2% growth to

negative 0.5%

growth

No reasonably

possible

movement

Reduction

from 2%

growth to

0.7%

growth

No

reasonably

possible

movement

No reasonably

possible

movement

No

reasonably

possible

movement









Discount rate

No reasonably

possible

movement

Increase from

22% to 26.2%

pre-tax

No reasonably

possible

movement.

Increase

from 22%

to 28%

pre-tax

No

reasonably

possible

movement

No reasonably

possible

movement

No

reasonably

possible

movement




The value-in-use is estimated to exceed the carrying amount of EastMed by $0.6 million. The value-

in-use is estimated to exceed the carrying amount of Ponsonby by $0.5 million. As such, there has

been no impairment of the asset during the year.


19.3. Other intangible assets


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

accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a

straight-line basis over their estimated useful lives. The estimated useful life and amortisation method

are reviewed at the end of each reporting period, with the effect of any changes in estimate being

accounted for on a prospective basis.


As a result of the acquisition of General Practices (GP), separately identified intangible assets have

been recognised from the patient enrolled database of the general practices and an ongoing funding

agreement with the Primary Health Organisations (PHOs). As a result of the acquisition of Aged

Residential Care (ARC) business, separately identified intangible assets have been recognised from

the enrolled service users (beds under care) and an ongoing funding agreement with the Primary

Health Organisations (PHOs).

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



44



Software

development

Patient

database

Enrolled

service users

(beds under

care)

PHO

agreement

Work in

progress

Total


$000 $000 $000 $000 $000 $000

Cost:







Balance at 31 March 2025 205 1,368 467 1,880 - 3,920

Additions 24 - 112 136

Additions from acquisitions - - 896 414 - 1,310

Disposals / retirements - - - - - -

Balance at 31 March 2026 229 1,368 1,363 2,294 112 5,366








Accumulated depreciation:







Balance at 31 March 2025 (36) (474) (78) (637) - (1,225)

Amortisation expense (68) (142) (170) (231) - (611)

Balance at 31 March 2026 (104) (616) (248) (868) - (1,836)








Carrying amount at 31

March 2026

125 752 1,115 1,426 112 3,530

Carrying amount at 31

March 2025

169 894 389 1,243 - 2,695




Software

development

Patient

database

Enrolled

service users

(beds under

care)

PHO

agreement

Total


$000 $000 $000 $000 $000

Cost:





Balance at 31 March 2024 169 1,368 - 1,796 3,333

Additions 36 - - - 36

Additions from acquisitions - - 467 84 551

Disposals / retirements - - - - -

Balance at 31 March 2025 205 1,368 467 1,880 3,920






Accumulated depreciation:





Balance at 31 March 2024 (12) (332) - (449) (793)

Amortisation expense (24) (142) (78) (188) (432)

Balance at 31 March 2025 (36) (474) (78) (637) (1,225)






Carrying amount at 31 March

2025

169 894 389 1,243 2,695

Carrying amount at 31 March

2024

157 1,036 - 1,347 2,540



A patient database and PHO agreement was acquired on the acquisition of each GP clinic. A number

of enrolled service users (beds under care) as well as PHO agreement was acquired on each ARC

acquisition. The patient database and PHO agreement for each General Practise acquisition are

amortised on a straight-line basis over ten years. The enrolled service users (beds under care) as well

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



45


as the PHO agreement for the ARC acquisition is amortised on a straight-line basis over six years.

The remaining useful life for each acquired GP clinic’s patient database, ARC enrolled service users

and PHO agreements is as follow as at 31 March 2026 is as follows:



HBWC BMC PMC DFM EMSHL HAC CIC ARCH

Remaining useful life (years) 2.0 5.5 6.0 6.0 6.5 4.0 4.4 5.4

20. Business combinations


20.1. 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 31 March 2026, contributing $995k (Cicada)

and $902k (ARC Health) to Group revenues and $170k (Cicada) and $233k (ARC Health) to Group

net profit after tax for the seven months. Prior to acquisition, these businesses operated on a cash

accounting basis. Five months of non-adjusted, cash accounting for the period 1 April to 31 August

2025 produced a net profit of $46k (Cicada) and $145k (ARC Health) and produced revenue of $781k

(Cicada) and $580k (ARC Health).


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 working capital adjustment 613 867

Contingent consideration at fair value 183 234

Total fair value of consideration transferred

796 1,101

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

Right of use Asset

- 155

Intangible assets (excluding goodwill)

422 888

Total assets acquired

652 1,293




Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



46



Cicada Heath

Limited

ARC Health

Limited


$000 $000

Current liabilities


Trade and other liabilities

(68) -

Lease Liability

- (6)

Accrued expenses

(78) (43)

GST and income tax

(59) (94)

Non-current liabilities


Lease Liability

- (149)

Deferred tax liability on intangibles

(118) (249)

Total liabilities acquired

(323) (541)

Total net assets acquired

329 752

Goodwill

566 499


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.

• $47,530 in 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.


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 range of possible values for deferred consideration is $0 - $280,000 but management expect to

pay the deferred consideration in full.


The total fair value of all consideration is $1,101,808.


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 Consolidated Statement of Profit or Loss and

Other Comprehensive Income under professional and consulting fees in other expenses.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



47


• $46,003 in interest costs over 12 months from discounting the contingent consideration

payable 1 September 2025 to fair value at acquisition date. $26,835 in interest costs have

been included in the Consolidated Statement of Profit or Loss and Other Comprehensive

Income.


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 Agreement and Enrolled service users (beds

under care)). 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 1 September 2025 (20% of

$113,884)

• 20% of the enrolled service users (beds under care) 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.

• $6,486 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. This was

adjusted down because of an existing liability to the minority partners.

• $218,750 in deferred contingent consideration considered payable on 1 September 2026, if

certain conditions are met (discussed below).


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

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



48


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 range of

possible values for deferred consideration is $0 - $218,750 but management expect to pay the

deferred consideration in full.


The total fair value of all consideration is $796,446.


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 Consolidated Statement of Profit or Loss and

Other Comprehensive Income under professional and consulting fees in other expenses.

• $35,940 in interest costs over 12 months from discounting the contingent consideration

payable 1 September 2025 to fair value at acquisition date. $20,965 in interest costs have

been included in the Consolidated Statement of Profit or Loss and Other Comprehensive

Income.


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 Enrolled service users (beds

under care)). 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 01 September 2025 (30% of

$24,957)

• 30% of the enrolled service users (beds under care) 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

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



49


completed for the period ending 31 March 26, the amounts payable for deferred consideration may

change and are subject to change depending on the performance of the acquisitions. These amounts

are subject to change up to and including 12 months after acquisition consistent with IFRS 3 business

combinations.


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 metrics

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.


20.2. Fair value measurement of deferred consideration


As part of the business combinations completed during the period, the Group recognised deferred

consideration dependent on the achievement of specified earnings and enrolled patient numbers. The

fair value of these liabilities at the acquisition date has been determined using an income-based

valuation approach, based on information and conditions existing at the acquisition date. The fair

values are subsequently remeasured at each reporting period with changes recognised in the profit

and loss.


The fair value of deferred consideration required significant judgement, including the estimation of

forecast performance, the estimation of forecast growth rates, operating margins, customer retention,

and the selection of appropriate discount rates.


These valuations are classified as Level 3 in the fair value hierarchy under IFRS 13, as they

incorporate significant unobservable inputs. The valuation is sensitive to changes in key assumptions,

particularly forecast performance and discount rates, which could result in a material change to the

recognised value of the deferred consideration.



A reconciliation of deferred consideration is set out below:



2026

2025



$000 $000

Opening balance


130 0

Additions arising from acquisitions


417 118

Interest on deferred consideration

48 12

Payments made (including interest)

(130) -

Fair value changes recognised in P&L


- -



465 130



Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



50


The fair value of the contingent consideration is sensitive to changes in key unobservable inputs

including discount rate. A change in the discount rate of ±1.0% would result in a change in the liability

of approximately $2k for Cicada and $3k for ARC Health. Changes in assumptions regarding the

probability of achieving EBIT and patient volume targets could also materially affect the estimated

liability, with lower probabilities resulting in a reduction in fair value and higher probabilities resulting in

an increase. Management expects to pay the deferred consideration in full.


The Group has assessed that the valuation techniques and assumptions applied are consistent with

those that would be used by market participants in determining fair value. There has been no change

in fair value of the deferred considerations from acquisition date to reporting period.


21. Trade and other payables


Current


2026

2025



$000 $000

Trade payables


963 739

GST payable


377 292

Deferred considerations for acquisitions

465 130

Accruals and other payables


758 721



2,563 1,882

Non-current


2026

2025



$000 $000

Liability for cash settled options

- 6

Accruals and other payables


- -



- 6


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

th

or 28

th

of the

month following the invoice date.


22. Financial instruments



2026

2025

Financial assets Notes

$000 $000

Financial assets at amortised cost


Cash and cash equivalents 16 2,901 2,594

Trade receivables and other receivables 17 1,219 1,059




Financial liabilities




Financial liabilities at amortised cost




Trade and other payables 21 2,563 1,888

Bank loan 29 1,092 1,150

Lease Liabilities 18 2,255 2,424

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



51


23. Financial risks


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

are managed.


23.1. Interest rate risk


As at 31 March 2026, the Company had two fixed rate bank loans. The balance as at 31 March 2026

on the fixed rate bank loans were $513k and $578k at an interest rate of 6.85% prior to IFRS 9

adjustment. The floating facility of $656,250 of which nil has been drawn down as at 31 March 2026

has a current rate of 6.99% (note 30).



2026

2025



$000 $000

+1% (100 basis points)

11 12

-1% (100 basis points)


(11) (12)



23.2. Credit risk


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

resulting in financial loss to the Group.


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

cash equivalents, trade and other receivables. The maximum credit risk at 31 March 2025 and 2026 is

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

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

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

ANZ, Westpac, BNZ and ASB are all rated AA- based on rating agency Standard & Poors.

Standard & Poors no longer rate Kiwibank, but ratings from Moody’s Investor Services and Fitch

are A1 and AA respectively.

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

debt expense recorded.


23.3. Liquidity risk


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

Ultimate responsibility for liquidity risk management rests with the Board of Directors. The Group

manages liquidity risk through continuous cash management and monitoring of forecast and actual

cash flows.


The Group and their related entities do not use supplier finance agreements to extend payment terms

further than the date on the supplier invoice.



Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



52


Financing arrangements

Unused borrowing facilities at the reporting date:


2026

2025



$000 $000

Bank overdraft

656 200

Bank loans


- -



656 200


23.4. Maturity profile


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


Contractual maturity dates


Notes Less than one

year

Greater than

one year

Greater than

five years

Total

Financial liabilities as at

31 March 2026:

$000 $000 $000 $000

Trade and other payables 21 2,563 - - 2,563

Lease liabilities 18 368 1,887 - 2,255

Bank loan 29 63 1,029 - 1,092

2,994 2,916 - 5,910


Notes Less than one

year

Greater than

one year

Greater than

five years

Total

Financial liabilities as at

31 March 2025:

$000 $000 $000 $000

Trade and other payables 21 1,882 6 - 1,888

Lease liabilities 18 330 1,745 349 2,424

Bank loan 29 59 1,091 - 1,150

2,271 2,842 349 5,462



Lease liabilities are discounted to present value and include any extended terms expected to be

utilised as at balance date. Bank loans represent the principal portion only.


Capital risk management


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

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

through the optimisation of the debt and equity balance.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



53


24. Share Capital


Ordinary shares

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).



Authorised


Issued Total issued and fully


Share Capital


paid shares


$000 $000 000's

Balance at 1 April 2025


485 485 9,954

Shares repurchased - - -

Shares issued


- - -

Balance at 31 March 2026


485 485 9,954


Balance at 1 April 2024


596 596 10,004

Shares repurchased


(111) (111) (50)

Shares issued - - -

Balance at 31 March 2025


485 485 9,954

On 19 August 2024, the Group announced an on-market share buyback programme of purchase up

to 5% of its ordinary shares with resulting buyback shown in shares repurchased above.


25. Share-based payments


25.1. Employee Share Option Plan (ESOP)


ESOP - CEO

On the 4 September 2021 (grant date) the Board approved the offer of 300,000 options, 183,000

equity-settled options and 117,000 cash-settled options, under an ESOP to the CEO, Tony Wai. The

options vest in three tranches; 60,000, 90,000 and 150,000. Vesting was subject to continued

employment and total return to shareholders being 26% per annum achieved by 27 September 2024,

27 September 2025, and 27 September 2026 since grant date with the expiry date of the options one

year after the date of vesting. Tranche one and tranche two of the options did not vest at 27

September 2024 and 27 September 2025 respectively. Tony Wai, CEO resigned on 10 October 2025

discontinuing his employment and subsequently forfeiting his shares with share options outstanding

and exercisable as at 31 March 2026 being nil.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



54




2026 2025

Financial liabilities as at 31

March 2026:

Number of

options

Weighted

average exercise

price

Number of

options

Weighted

average

exercise price

Outstanding as at 1 April 300,000 2.36 300,000 2.36

Forfeited during the year (300,000) - - -

Exercised during the year - - - -

Granted during the year - - - -

Outstanding as at 31 March - - 300,000 2.36

Exercisable as at 31 March - - - -


25.2. Share-based payments expense


2026 2025

Employee share option plan:

$000 $000

Share-based payments expense equity-settled (31) 8

Share-based payments expense cash-settled (6) 5



Employee share purchase plan (37) 13


Related party transactions


25.3. 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 31 March 2026.


Subsidiary name

Country of

incorporation

Ownership

2026

Ownership

2025

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 New Zealand

100% 100%

EastMed St Heliers Limited New Zealand

67% 67%

Hub Aged Care Limited (acquired on 1 April 2024) New Zealand

70% 70%

Cicada Health Limited (acquired on 1 September 2025) New Zealand

70% -

ARC Health Limited (acquired on 1 September 2025) New Zealand

80% -

ARC Holdings (Third Age Health) Limited (incorporated 25

August 2025) (Dormant)

New Zealand

100% -


On 9th August 2024, the Company sold its 10% share back to Phoenix Health Hub Limited for the

nominal value of $1. The Company had not invested any funds in Phoenix Health Hub, nor had it

paid for the shares.


On 17th February 2025 the Third Age Employee Share Purchase Plan Trust was wound up, as the

share purchase plan was no longer active. The remaining equity balance of the Third Age Employee

Share Purchase Plan Trust has been transferred to retained earnings.

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



55


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

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

the Group.


25.4. Related party transactions


2026 2025

$000 $000

John Samuel Ronny

Fernandes

Director, Executive

Chair and

shareholder Director fees 62 63

John Samuel Ronny

Fernandes

Executive

base

remuneration 56 -

John Samuel Ronny

Fernandes

Executive

Bonus 70 -

Bevan John Walsh

Director and

shareholder Director fees 36 35

Wayne Geoffrey Williams Director Director fees 45 45

Steffan Crausaz

Director Director fees 37 37



Directors’ fees for John Samuel Ronny Fernandes, Bevan John Walsh, Steffan Crausaz and Wayne

Geoffrey Williams also include fees as members of the Audit Committee; John Samuel Ronny

Fernandes up until 13 October 2025 and Bevan John Walsh from 13 October 2025 onwards. Wayne

Geoffrey Williams, Audit Committee Chair, receives a fee of $10,000 per annum, Steffan Crausaz

$2,500 per annum and Bevan John Walsh and John Samuel Ronny Fernandes split a fee of $2,500

per annum for their respective part of the financial year on the Audit Committee.



25.5. Key management personnel compensation



2026

2025


$000 $000

Short term benefits


CEO remuneration: Tony Wai (resigned 10 October 2025) 225 456

Executive Chair remuneration (commenced 13 October 2025) 126 -

Other key management personnel 1,017 1,021

Directors 180 180


1,548 1,657




Long term benefits

Share-based payments - 13


1,548 1,670



Remuneration of the Executive Chair is based on a prorated base of $120k per annum amounting to

$56k and a calculated incentive fee of Base Fee times Company Performance Factor times Individual

Factor, pro-rated in the first year amounting to $70k. The company performance factor is a

combination of two metrics which compare the growth from the prior year. The two metrics are

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



56


(Return on Invested Capital, [ROIC]% minus 5%) and Revenue growth %. The individual factor is to

be determined by the non-conflicted directors.


Remuneration of the CEO for FY26 is based on a prorated base of $306k and annual leave paid on

resignation on 10

th

October 2025.


Remuneration of the CEO for FY25 is based on a base of $306k and Short -Term Incentive Pool (STI)

capped at $150k. The STI was risk based on achievement of organic revenue and profit growth

targets. It was only payable where actual growth exceeded a minimum threshold, with maximum

payment reached when growth exceeded 15%. Payment on the due date was also conditional on

compliance with all relevant laws and regulations governing the Company.


26. Non-Controlling Interests


Hub Aged Care Limited in the aged medical care services segment, is a 70% owned subsidiary of the

Company is material to the group and has material non-controlling interests (NCI) which was acquired on 1

April 2024.


Summarised financial information in relation to Hub Aged Care Limited, before intra-group eliminations, is

presented below together with amounts attributable to NCI:


2026 2025


$000 $000

Revenue 2,146 1,626

Interest income 3 2

Finance costs - -

Depreciation and amortisation (101) (94)

All other income and expenses (1,199) (820)

Income tax expense (238) (200)

Profit for the period 611 514



Profit / (loss) allocated to NCI 183 154





2026 2025


$000 $000

Cash and cash equivalents

396 266

Other current assets

181 176

Total current assets


577 442




Total non-current assets


377 478

Total assets


954 920




Total current liabilities


(265) 214

Total non-current liabilities

(102) 128

Total liabilities (367) 342


Net Assets 587 578

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



57


Net Assets attributable to the NCI

176 173

Summary Statement of Cashflows for Hub Aged Care Limited



2026 2025


$000 $000

Net cash flows from operating activities 712 620

Net cash used in investing activities - (19)

Net cash flows (used in) / provided by

financing activities (582) (387)

Net increase in cash and cash

equivalents 130 214


Net cashflows / (outflows) NCI 39 64

Dividends paid to NCI during the year (in

financing activities) (174) (116)



ARC Health Limited in the aged medical care services segment, is an 80% owned subsidiary of the

Company is material to the group and has material non-controlling interests (NCI) which was acquired on 1

September 2025. Cicada Health Limited in the aged medical care services segment, is a 70% owned

subsidiary of the Company is material to the group and has material non-controlling interests (NCI) which

was acquired on 1 September 2025.



Summarised financial information in relation to ARC Health Limited and Cicada Health Services Limited,

before intra-group eliminations, is presented below together with amounts attributable to NCI for the seven

months of ownership in FY26:



ARC Health Cicada Health


$000 $000

Revenue

902

995

Interest income - -

Finance costs (7) -

Depreciation and amortisation (99) (49)

All other income and expenses (472) (708)

Income tax expense (91) (68)

Profit for the period 233 170



Profit / (loss) allocated to NCI 47 51




ARC Health Cicada Health


$000 $000

Cash and cash equivalents

485 204

Other current assets

129 116

Total current assets


614 320




Total non-current assets


988 373

Total assets


1,602 693




Total current liabilities


(236) (176)

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



58


Total non-current liabilities

(371) (104)


ARC Health Cicada Health

$000 $000

Total liabilities (607) (280)


Net Assets 995 413


Net Assets attributable to the NCI

199 124



Summary Statement of Cashflows for ARC Health Limited and Cicada Health Limited



ARC Health Cicada Health


$000 $000

Net cash flows from operating activities 402 168

Net cash used in investing activities - -

Net cash flows (used in) / provided by

financing activities (11) (86)

Net increase in cash and cash

equivalents 391 82


Net cashflows / (outflows) NCI (78) (20)

Dividends paid to NCI during the year (in

financing activities) - (26)



EastMed St Heliers Limited in the General practice medical services segment, a 67% owned subsidiary of

the Company is not material to the group and has an NCI. Eastmed St Heliers Limited contributed the

following to the group before intra-group eliminations, is presented below together with amounts

attributable to NCI:


2026 2025


$000 $000

Profit for the period (46) (48)




Profit / (loss) allocated to NCI (15) (15)



27. Contingent liabilities and contingent assets


The Group had no contingent assets or liabilities as at 31 March 2026 (2025: Nil).

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



59


28. Bank loan


The Company entered into a $3 million debt facility in the financial year ending 31 March 2023 with

ANZ Bank New Zealand Limited to provide capital to support the Group’s planned acquisition

strategy. The ANZ loan facility balance as at 31 March 2026 was as follows:


1. $513k term loan, fixed at a rate of 6.85% maturing on 30 April 2028;

2. $578k term loan, fixed at a rate of 6.85% maturing on 30 April 2028;

3. $656k floating facility with nil drawn, at current rate as at 31 March 2025 of 6.99%


Security for the loan and overdraft are a first ranking security over the Company and the Group which

includes cross guarantees and indemnity of debt. Annual audited financial statements and annual

budget are required to be provided annually to ANZ Bank New Zealand Limited.


Total interest charged on the loan in the period was $84,071 (FY25: $139,297).




Current


2026

2025



$000 $000

Bank loan

63 59


Non-current


2026

2025



$000 $000

Bank loan

1,029 1,091


Unrestricted access was available at the reporting date to the following lines of credit:


Total facilities


2026

2025



$000 $000

Bank loan

1,092 1,150

Overdraft


656 200



1,748 1,350


Used facilities


2026

2025



$000 $000

Bank loan

1,092 1,150

Overdraft


- -



1,092 1,150


Available facilities


2026

2025



$000 $000

Bank loan

- -

Overdraft


656 200



656 200

Third Age Health Services Limited
Notes to the consolidated financial statements

For the year ended 31 March 2026



60


29. Subsequent events


29.1. Final dividend declared


On 29 May 2026 the Board declared a final dividend for the year of 4.00 cents per share taking the

total dividend for the year to 16.00 cents per share.


Subsequent to 31 March 2026, the Group entered into a new lease agreement for an existing

premise. The lease commenced on 1 April 2026 and has a term of 6.5 years. As the lease was

entered into after the reporting date, no lease liability or right-of-use asset has been recognised as at

31 March 2026. The financial effect of the lease will be recognised from the commencement date.


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

or may affect, the operations of the Group, the results of those operations or the state of affairs of the

entity in subsequent financial years.







Independent Auditor’s Report

To the Shareholders of Third Age Health Services Limited

Opinion

I have audited the consolidated financial statements of Third Age Health Services Limited (“the Company”)

and its subsidiaries (“the Group”), which comprise:

• the consolidated statement of financial position as at 31 March 2026;

• the consolidated statement of profit or loss and other comprehensive income, consolidated

statement of changes in equity and consolidated statement of cash flows for the year then ended;

and

• the notes to the consolidated financial statements, including a summary of material accounting

policies.

I am a partner with UHY Haines Norton Chartered Accountants Sydney (the Firm) and I have used the staff

and resources of the Firm to perform the audit of the Group.

In my opinion, the accompanying consolidated financial statements present fairly, in all material respects,

the consolidated financial position of the Group as at 31 March 2026, and its consolidated financial

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

Equivalents to International Financial Reporting Standards (“NZ IFRS”) issued by the New Zealand Accounting

Standards Board and IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards

Board.

Basis for Opinion

I conducted my audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”)

issued by the New Zealand Auditing and Assurance Standards Board. My responsibilities under those

standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial

Statements section of my report.

I am independent of the Group in accordance with Professional and Ethical Standard 1 International Code of

Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by

the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for

Accountants’ International Code of Ethics for Professional Accountants (including International Independence

Standards) (IESBA Code), and I have fulfilled my other ethical responsibilities in accordance with these

requirements and the IESBA Code.


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

opinion. Other than in my capacity as auditor, neither myself, the firm nor the firm’s staff have a relationship

with, or interests in, the Group.

Key Audit Matters

Key audit matters are those matters that, in my professional judgement, were of most significance in my

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

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

and I do not provide a separate opinion on these matters.

Why the audit matter is significant How my audit addressed the key audit matter

Revenue recognition

The Group has recognised revenue of $22.49m

(FY 2025: $19.08m) (Note 4). Revenue is a key

focus of shareholders, directors and

management in measuring the Group’s progress

towards its growth objectives.

The Group’s principal revenue stream, the

provision of consultation services, continues to

be recognised at the point in time at which the

service is provided.

The Group’s other significant revenue stream,

the provision of capitation services, is recognised

over time as the service is provided.



To address the risk associated with revenue

recognition, the following audit procedures were

carried out:

• Reviewed revenue recognition policies for

appropriateness and compliance with the

requirements of the relevant accounting

standard NZ IFRS 15;

• Performed Substantive Analytical review

procedures;

• Selected a sample of transactions and agreed

them to supporting documentation such as

invoices, cash receipt and assessed whether all

criteria related to revenue recognition has

been met before being recognised as revenue;

• Reviewed credit notes posted after year end to

ascertain correct revenue recognition during

the year;

• Performed revenue cut off procedures by

selecting revenue samples before and after

year end and testing that revenue is recorded

in the correct period;

• Reviewed manual revenue journals as part of

the journal entry testing process with the

criteria specifically targeting unusual entries to

revenue accounts; and

• Assessed the reasonability and completeness

of the revenue related disclosures to test

compliance with the requirements of the

accounting standards.




Why the audit matter is significant How my audit addressed the key audit matter

Intangible assets & Goodwill

The Group has significant intangible assets relating

to the acquisitions made in current and previous

periods which are subject to annual impairment

testing.

The Group has significant intangible assets with

finite useful lives including software, patient

database, enrolled service users and PHO

agreement totalling $3.4m (note 19) as at 31 March

2026 that are amortised over their useful life.

In addition, there is a significant goodwill balance

recorded of $3.1 million (note 19) as at 31 March

2026.

Significant judgements and assumptions are

involved in the estimation of asset’s recoverable

values, including cash flow estimates, growth and

discount rates.

I consider this area to be significant due to the

extent of significant auditor judgements and effort

involved in assessing the reasonability of key

assumptions.

To address the risk associated with intangible

balance, the following audit procedures were

carried out:

• Assessed whether the methodology applied

by the Group met the requirements of NZ

IFRS;

• For the value in use calculations, I

independently calculated an auditor’s

estimate and compared this with

management’s assessment and the

relevant carrying amount. This involved

developing appropriate estimates of cash

flows, growth rates and discount rates from

a combination of company specific and

publicly available information and applying

those estimates using a generally accepted

methodology;

• Performed a sensitivity analysis on the key

assumptions; and

• Assessed the reasonability and

completeness of the related disclosures

included in the financial statements


Business acquisitions

During the year, the Group acquired ARC Health

Limited and Cicada Health Limited for a total

consideration of $1.10m and $0.79m (Note 20).

Accounting for these transactions involve significant

estimates and assumptions in determining the fair

value of the identifiable assets acquired and

liabilities assumed.

I consider this area to be significant due to the

extent of significant auditor judgements and effort

involved in assessing the reasonability of key

assumptions.

To address the risk associated with business

combination, the following audit procedures were

carried out:

• Assessed whether the methodology applied

by the Group met the requirements of NZ

IFRS;

• Tested management’s key estimates with

reference to comparable public information

and company specific documentation;

• I independently developed an auditor’s

estimate of value for significant intangibles

recognised on the acquisition by developing

appropriate estimates of cash flows, growth

rates and discount rates from a

combination of company specific and




publicly available information and applying

those estimates using a generally accepted

methodology. I analysed my resulting

estimates using a WARA methodology; and

• Assessed the reasonability and

completeness of the related disclosures

included in the financial statements


Information Other than the Consolidated Financial Statements and Auditor’s Report thereon

The Directors are responsible for the annual report, which includes information other than the consolidated

financial statements and auditor’s report.

My opinion on the consolidated financial statements does not cover the other information and I do not

express any form of audit opinion or assurance conclusion thereon.

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

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

consolidated financial statements or my knowledge obtained in the audit, or otherwise appears to be

materially misstated.

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

information, I am required to report that fact. I have nothing to report in this regard.

Directors’ Responsibilities for the Consolidated Financial Statements

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

consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the

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

from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for

assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless the directors either intend to liquidate the

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

My objective is to obtain reasonable assurance about whether the consolidated financial statements as a

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

that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an

audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

consolidated financial statements.


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

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

standards/auditors-responsibilities/audit-report-1-1/

This description forms part of my auditor’s report.

Restriction on use of my report

This report is made solely to the Group’s shareholders, as a body. My audit work has been undertaken so

that I might state to the Group’s shareholders, as a body those matters which I am required to state to them

in an auditor’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or

assume responsibility to anyone other than the Group and the Group’s shareholders, as a body, for my audit

work, for this report or for the opinion I have formed.


Vikas Gupta

Audit Partner - UHY Haines Norton Chartered Accountants Sydney

Signed at Sydney, Australia on 26 June 2026


STATEMENT OF CORPORATE GOVERNANCE
Third Age Health Services Limited

and subsidiaries

Third Age Health Services Limited
Corporate governance


67


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

returns on capital and the average annual rate of increase in intrinsic value per share. The Board

considers there is a strong link between good corporate governance and the achievement of this

objective.


The Company seeks to follow the NZX Corporate Governance Code (NZCGC) recommendations for

listed companies to the extent that it is appropriate to the size and nature of the Company’s

operations. Other principles which the Company considers in its governance approach are the

Financial Market Authority’s Corporate Governance Principles and Guidelines, and the

Commonsense Corporate Governance Principles 2.0 (altogether “Principles”).


The Board considers that its corporate governance framework complies with the NZCGC

recommendations, except as stated within this report. This report is presented by addressing the eight

principles and the associated recommendations of the NZCGC.


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

ended 31 March 2026 and has been approved by the Board.


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

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



Principle 1 – Ethical standards

“Directors should set high standards of ethical behaviour, model these behaviours and hold

management accountable for these standards being followed throughout the organisation.”


Recommendation 1.1

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

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

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

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

than one policy.

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

the issuers’ expectations about behaviour, namely that every director and employee:

a. acts honestly and with personal integrity in all actions;

b. declares conflicts of interest and proactively advises of any potential conflicts;

c. undertakes proper receipt and use of corporate information, assets and property;

d. in the case of directors, give proper attention to the matters before them;

e. acts honestly and in the best interest of the issuer, as required by law, and takes account of

interests of shareholders and other stakeholders;

f. adheres to any procedures around giving and receiving gifts (for example where gifts are given

that are of value in order to influence employees and directors, such gifts should not be

accepted);

g. adheres to any procedures about whistle blowing (for example, where actions of a whistle blower

have complied with the issuer’s procedures, an issuer should protect and support them, whether

or not action is taken): and

h. manages breaches of the code”


The Company complies with this recommendation with a Code of Ethics which was originally

published in March 2022 and reviewed in June 2026. Directors observe and foster high ethical

standards. The Company expects its directors, officers, and employees to act legally, to maintain high

ethical standards, and to act with integrity consistent with the Company’s policies, guiding principles

and values.

Third Age Health Services Limited
Corporate governance


68


The Company adopts policies to ensure it maintains high standards of performance and behaviour

when dealing with the Company’s customers, suppliers, shareholders and staff. The specific

governance policies in place throughout the year were a Diversity and Inclusion policy, Market

Disclosure policy and the Financial Products Trading policy.


The Code of Ethics can be found on the investor section of the Company’s website

(https://www.thirdagehealth.co.nz).


Recommendation 1.2

“An issuer should have a financial product dealing policy which applies to employees and directors.”


The Company complies with this recommendation. The Financial Products Trading Policy can be

found on the investor section of the Company’s website (https://www.thirdagehealth.co.nz).



Principle 2 - Board composition and Performance

“To ensure an effective board, there should be a balance of independence, skills, knowledge,

experience and perspectives.”


Recommendation 2.1

“The board of the issuer should operate under a written charter which sets out the roles and

responsibilities of the board. The board charter should clearly distinguish and disclose the respective

roles and responsibilities of the board and management.”


The Company complies with this recommendation, with the board operating under a Board Charter

which is available on the investor section of the Company’s website

(https://www.thirdagehealth.co.nz).


Recommendation 2.2

“Every issuer should have a procedure for the nomination and appointment of directors to the board.”


The Company complies with this recommendation. The Board has decided that these functions will be

carried out by the full board within the terms of reference of its Board Charter. A copy of the Board

Charter is available on the investor section on the Company’s website

(https://www.thirdagehealth.co.nz).


Recommendation 2.3

“An issuer should enter into written agreements with each newly appointed director establishing the

terms of their appointment.”


The Company complies with this recommendation. All current Directors and senior executives have

entered into written agreements with the Company setting out the terms of their appointment. In

accordance with the NZX Listing Rules, all Directors are required to retire (though may be re-elected)

not later than the third annual meeting following the Director’s appointment, or after three years,

whichever is longer. Any Directors appointed by the Board since the previous annual meeting must

also retire and are eligible for election.


Recommendation 2.4

“Every issuer should disclose information about each director in its annual report or on its website,

including profile of experience, length of service, independence and ownership interest and director

attendance at Board meetings.”

Third Age Health Services Limited
Corporate governance


69


The Company complies with this recommendation. The biographies of the Directors are available in

this Annual Report and on the Company’s website (https://www.thirdagehealth.co.nz).


Director Appointment Date Length of Service to

31 March 2026

Bevan John Walsh (Director) 5 November 2010 15 years, 5 months

John Samuel Ronny Fernandes (Executive Director) 6 February 2019 7 years, 2 months

Wayne Geoffrey Williams (Independent Director) 10 June 2021 4 years, 10 months

Steffan Crausaz (Independent Director)

1 December 2023 2 years, 4 months



With regard to Board meeting attendance, the Board meets formally as often as it deems appropriate,

including sessions to review the performance of the business, to consider the strategic direction and

to approve annual budgets. Directors supplement these formal meetings with frequent ad-hoc

information conversations.


The table below sets out Director attendance at Board meetings during FY26, including meetings to

approve strategic plans, budgets and the release of annual and half year results.


Director Number of meetings

eligible to attend

Number of meetings

attended

Bevan John Walsh 9 9

John Samuel Ronny Fernandes 9 9

Wayne Geoffrey Williams 9 9

Steffan Crausaz

9 9


Recommendation 2.5

“An issuer should have a written diversity policy which includes requirements for the board or a

relevant committee of the board to set measurable objectives for achieving diversity (which at a

minimum should address gender diversity) and to assess annually both the objectives and the entity’s

progress in achieving them. The issuer should disclose the policy or a summary of it.”


The Company complies with the recommendation to have a written diversity policy which can be

found on the investor section of the Company’s website (https://www.thirdagehealth.co.nz). The

Company prioritises diversity of thought and has not set any specific measurable diversity objectives

related to gender, ethnicity or other similar characteristics.


NZX listed issuers are required to report quantitative data on the gender breakdown of Directors and

Officers at the financial year end.


As at 31 March 2026 the mix of male and female within the Board and Company’s key management

personnel (the Lead Executive and persons that report to the Lead Executive) was as follows:



2026 2025

Male Female Male Female

Directors 4

-


4

-




Key Management Personnel

2 4


3 6


Third Age Health Services Limited
Corporate governance


70


Recommendation 2.6

“Directors should undertake appropriate training to remain current on how to best perform their duties

as directors of an issuer.”


Members of the Board undertake regular professional training to remain current on how best to

perform their duties. The Company encourages all Directors to undertake appropriate training and

education so that they may best perform their duties. This may include attending presentations on

changes in governance, legal and regulatory frameworks; attending technical and professional

development courses; site visits and briefings from key executives; and attending presentations from

industry experts and key advisers.



Recommendation 2.7

“The Board should have a procedure to regularly assess director, board, and committee

performance.”


The Board have an assessment process to enable the Directors, and the Board plus senior

executives. The Board considers individual and collective performance, together with the skill sets,

training and development and succession planning required to govern the business.


Recommendation 2.8

“A majority of the Board should be independent directors.”


The Company does not comply with this recommendation. In determining directors’ independence,

the Board has applied factors outlined in the commentary to Corporate Governance Code

recommendation 2.4.


The Board currently comprises four Directors, two of whom are independent, representing 50% of the

Board rather than a majority. The Board considers that the current composition and size are

appropriate for the scale of the business, and that the two independent directors provide robust

independent judgement to the Board's deliberations. The directors are:

• John Samuel Ronny Fernandes, Executive Chairman

• Bevan John Walsh, Non-Executive Director

• Wayne Geoffrey Williams, Independent Director

• Steffan Crausaz, Independent Director


Directors’ interests disclosed for the financial year ended 31 March 2026 are provided in the

shareholder and statutory information section of this Annual Report.


Recommendation 2.9 and 2.10

“An issuer should have an independent chair of the Board. If the chair is not independent, the chair

and the CEO should be different people.” and “The Chair and CEO should be different people.”


The Company partially complies with these recommendations. The Chairman acts in an executive

capacity and is therefore not independent. To satisfy the requirement that the Chair and CEO are not

the same person, the Board notes that the Company does not currently have a formally appointed

CEO. Instead, the Company operates under a decentralised management structure where executive

responsibilities are distributed between the Executive Chairman and the respective General

Managers of the Company's business units.




Third Age Health Services Limited
Corporate governance


71


Principle 3 – Board committees

“The board should use committees where this will enhance its effectiveness in key areas,

while still retaining board responsibility.”


Recommendation 3.1

“An issuer’s audit committee should operate under a written charter. An audit committee should only

comprise non-executive directors of the issuer. One member of the committee should be both

independent and have an adequate accounting or financial background. The chair of the audit

committee should be an independent director and not the chair of the board”


The Company complies with this recommendation. The Board operates an Audit Committee which

provides a forum for effective communication between the Board and external auditors. The

Committee reviews the annual and half-yearly financial statements, prior to their approval by the

Board, the effectiveness of internal control, the Company finance function, information systems, and

the efficiency and effectiveness of the audit function.


During the year ended 31 March 2026 the Committee comprised of Wayne Geoffrey Williams (Chair

and Independent Director), Steffan Crausaz (Independent Director) and John Samuel Ronny

Fernandes (Independent Director) for the period through to 13 October 2025. Upon his appointment

as Executive Chairman on 13 October 2025, John Samuel Ronny Fernandes stepped down from the

Committee and was replaced by Bevan John Walsh (Non-Executive Director). The Audit Committee

Charter can be found on the investors section of the Company’s website

(https://www.thirdagehealth.co.nz). The Chair of the Audit Committee, Wayne Geoffrey Williams, is

not the Chair of the Board.


The table below sets out the members of the Audit Committee’s attendance at Audit Committee

meetings during FY26.


Director Number of meetings

eligible to attend

Number of meetings

attended

Wayne Geoffrey Williams

3 3

John Samuel Ronny Fernandes (resigned 13 October 2025)

1 1

Steffan Crausaz

3 3

Bevan John Walsh (appointed 13 October 2025)

2 2



Recommendation 3.2

“Employees should only attend the audit committee at the invitation of the audit committee.”


The Company complies with this recommendation. Employees and other non-members of the

committee only attend by invitation.


Recommendation 3.3

“An issuer should have a remuneration committee which operates under a written charter (unless this

is carried out by the whole board). At least a majority of the remuneration committee should be

independent directors”.


Given the size and nature of the Board there is no standing committee for remuneration, but the

Board has decided that these functions will be carried out by the full Board within the terms of

reference of the Board Charter. A copy of the Board Charter is available on the investors section of

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

Third Age Health Services Limited
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72


Recommendation 3.4

“An issuer should establish a nominations committee to recommend director appointments to the

Board (unless this is carried out by the whole Board) which should operate under a written charter. At

least a majority of the nominations committee should be independent directors.”


Given the size and nature of the Board there is no standing committee for nominations, but the Board

has decided that these functions will be carried out by the full board within the terms of reference of

the Board Charter. A copy of the Board Charter is available on the investor section of the Company’s

website (https://www.thirdagehealth.co.nz).


Recommendation 3.5

“An issuer should consider whether it is appropriate to have any other board committees as standing

committees. All committees should operate under written charters. An issuer should identify the

members of each of its committees, and periodically report member attendance.”


The Board will continue to access the requirements for further standing committees. The Board will

use standing committees where this will enhance its effectiveness in key areas, while still retaining

Board responsibility.


Recommendation 3.6

“The board should establish appropriate protocols that set out the procedure to be followed if there is

a ‘control transaction’ for the issuer including the procedure for any communication between the

issuer’s board and management and the bidder. The board should disclose the scope of independent

advisory reports to shareholders. These protocols should disclose the option of establishing an

independent control transaction committee, and the likely composition and implementation of an

independent control transaction committee.”


In the case of a control transaction offer, the Company will form an Independent Special Committee to

oversee disclosure and response and engage expert legal and financial advisors to provide advice on

procedure. The Company does not have a formal Control Transaction Response Policy at this stage

and so is not compliant with this recommendation.



Principle 4 - Reporting and disclosure

“The board should demand integrity in financial and non-financial reporting, and in the

timeliness and balance of corporate disclosures.”


Recommendation 4.1

“The issuer’s board should have written continuous disclosure policy.”


The Company complies with this recommendation. The Company’s directors are committed to

keeping investors and the market informed of all material information about the Company and its

performance, in a timely manner. The company has adopted a Market Disclosure Policy to ensure

that material information is identified, reported, assessed and, where required, disclosed to the market

in a timely manner. A copy of the Policy is available on the investors section of the Company’s

website (https://www.thirdagehealth.co.nz).


Recommendation 4.2

“An issuer should make its code of ethics, board and committee charters and the policies

recommended in the NZX Code, together with any other key governance documents, available on its

website.”


The Company complies with this recommendation. Published policies and charters are found the

investor section of the Company’s website (https://www.thirdagehealth.co.nz).

Third Age Health Services Limited
Corporate governance


73


Recommendation 4.3

“Financial reporting should be balanced, clear and objective.”


In addition to all information required by law, the Company also seeks to provide meaningful

information to ensure stakeholders and investors are well informed, including financial and non-

financial information.


Financial Information

Senior Management is responsible for implementing and maintaining appropriate accounting and

financial reporting principles, policies, and internal controls designed to ensure compliance with

accounting standards and applicable laws and regulations.


The Board’s Audit Committee oversees the quality and integrity of external financial reporting,

including the accuracy, completeness, balance and timeliness of financial statements. It reviews the

Company’s full and half year financial statements and makes recommendations to the Board

concerning accounting policies, areas of judgement, compliance with accounting standards, stock

exchange and legal requirements, and the results of the external audit.


For the financial year ended 31 March 2026, the Directors believe that proper accounting records

have been kept that enable the determination of the Company’s financial position with reasonable

accuracy and facilitate compliance of the financial statements with the Financial Markets Conduct Act

2013.


The Company’ full and half year financial statements are available on the investor section of the

Company’s website (https://www.thirdagehealth.co.nz).


Recommendation 4.4


An issuer should provide non-financial disclosures at least annually, including considering

environmental, economic, and social factors and practices. It should explain how operational or non-

financial targets are measured. Non-financial reporting should be informative, include forward looking

assessments, and align with key strategies and metrics monitored by the board.”


Non‑financial information

The Company sets out, reports against and discusses its strategic objectives in a variety of

communications including the Executive Chair’s commentary in reports to shareholders. Where

relevant, this includes non-financial factors that are material to execution of strategy and long-term

performance.



Principle 5 – Remuneration

“The remuneration of directors and executives should be transparent, fair and reasonable.”


Recommendation 5.1

“An issuer should have a remuneration policy for the remuneration of directors. An issuer should

recommend director remuneration to shareholders for approval in a transparent manner. Actual

director remuneration should be clearly disclosed in the issuer’s annual report.”


The Company complies with this recommendation. Remuneration of Directors and senior executives

is a key responsibility of the Board. The Board ensures that remuneration is rational and aligned with

the long-term interests of shareholders, rather than relying on external peer benchmarking.

Third Age Health Services Limited
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74


Director remuneration

The total remuneration pool available for Directors was fixed at listing at a current maximum of

$180,000 per annum for all non-executive Directors. The Board determines the level of remuneration

paid to Directors from that pool. Directors also receive reimbursement for reasonable travelling,

accommodation and other expenses incurred in the course of performing their duties.


Any proposed increases in pool of fees for non-executive Director fees and remuneration will be put to

shareholders for approval. If independent advice is sought by the Board, it will be disclosed to

shareholders as part of the approval process.


Approved remuneration for Board roles

The fees payable to a Chairman of the Board currently amount to $60,000 per annum, fees payable to

the other Directors are $35,000 per annum. The Chair of the Audit Committee receives $10,000 per

annum while members receive $2,500 per annum.


No retirement benefits, share options or special exertion payments have been provided to Directors.


Recommendation 5.2

“An issuer should have a remuneration policy for remuneration of executives which outlines the

relative weightings of remuneration component and relevant performance criteria.”


The Company complies with this recommendation.


Executive remuneration

The Company complies with this recommendation. The remuneration policy for executives is

designed to align executive compensation with long-term shareholder value creation, utilising

performance metrics and share reinvestment requirements as detailed below.


Recommendation 5.3

“An issuer should disclose the remuneration arrangements in place for the CEO in its annual report.

This should include disclosure of base salary, short term incentives and long-term incentives and the

performance criteria used to determine performance-based payments.”


The Company complies with this recommendation. While the Company does not operate with a

formally appointed Chief Executive Officer and instead adopts a decentralised management structure,

the Board believes that executive remuneration should be clearly structured and closely aligned with

long-term shareholder value creation. The Board has chosen to disclose the remuneration

arrangements for the Executive Chairman in greater detail as a matter of principle rather than

compliance. This approach is intended to provide shareholders with transparency over performance

assessment, incentive determination and long-term alignment.


Executive Remuneration


John Samuel Ronny Fernandes was appointed Executive Chairman effective from 13 October 2025.

As a consequence, John ceased to be an independent director at that time.


John had requested that any remuneration relating to his executive responsibilities be fully variable

and tied to drivers of value creation. The non-conflicted directors acknowledged this intent but

preferred a base pay component to ensure the arrangement was commercially sustainable in the long

run. Consequently, a base fee of $120,000 per annum payable in monthly instalments, plus a fully

variable and at-risk incentive fee, was agreed.

Third Age Health Services Limited
Corporate governance


75


The incentive fee is calculated as: Base Fee x Company Performance Factor x Individual Factor, and

is pro-rated in the first year.


The Company Performance Factor is determined by reference to the sum of Revenue Growth and

Return on Invested Capital (ROIC). A "risk-free" rate of return of 5% is subtracted from the ROIC

component.


The Individual Factor (IF) is determined by the non-conflicted directors of the Company after taking

into account the executive's responsibilities, skills, and the performance and size of the company.


Any incentive fee is payable within 30 days of finalisation of the Company’s audited annual results.


For the period from 13 October 2025 to 31 March 2026, John was paid a pro-rata base fee of

$56,307.69 and the non-conflicted directors determined a pro-rata incentive fee of $69,631.12.


John has committed to reinvest at least 50% of any after-tax incentive payment into the Company's

shares. This is subject to the availability of shares to purchase on-market, compliance with the

Company's trading policies, and any other legal requirements. These shares must be held for a

minimum of four years unless otherwise agreed by the Company.


John and the Company have also negotiated reciprocal termination rights on 12 months’ notice.


In the specific event of an unsolicited change of control that precedes the termination of the Executive

Chairman's contract, remuneration during the notice period will be calculated at an agreed fixed rate

to reflect the altered risk profile and structural changes to the business.


Other Executives


Similar remuneration principles and requirements apply to the General Managers of the Company's

business units and to other senior team members from FY27 onwards. These requirements include

reinvesting a percentage of any after-tax incentive payment in the Company's shares and observing a

minimum holding period.



Principle 6 - Risk management

“Directors should have a sound understanding of the material risks faced by the issuer and

how to manage them. The Board should regularly verify that the issuer has appropriate

processes that identify and manage potential and material risks.”


Recommendation 6.1

“An issuer should have a risk management framework for its business and the issuer’s board should

receive and review regular reports. An issuer should report the material risks facing the business and

how these are being managed.”


The Board has overall responsibility for the Company’s system of risk management and internal

control. While day-to-day management is delegated to the Executive Chair, the Board receives and

reviews the Company’s risk management framework as required including oversight of material risks

and how these are being managed.


Risk identification

The senior management team is required to regularly identify the major risks affecting the business

and develop structures, practices, and processes to manage and monitor these risks. Management

provides an updated risk assessment as required. Additionally, the Board has regular engagement

with all key management personnel, including unfettered access to them and external advisors as

needed to support decision making and manage risks.

Third Age Health Services Limited
Corporate governance


76


Insurance

The Company maintains insurance policies that it considers adequate to meet its insurable risks.


Recommendation 6.2

“An issuer should disclose how it manages its health and safety risks and should report on its health

and safety risks, performance and management.”


The Company complies with this recommendation, with formal reporting to the board on its health and

safety risks, performance, and management at Board meetings.



Principle 7 – Auditors

“The board should ensure the quality and independence of the external audit process.”


Recommendation 7.1

“The board should establish a framework for the issuer’s relationship with its external auditors. This

should include:

a. For sustaining communication with the issuer’s external auditors;

b. To ensure that the ability of the external auditors to carry out their statutory audit role is not

impaired, or could reasonably be conceived to be impaired;

c. To address what, if any services (whether by type or level) other than their statutory audit roles

may be provided by the auditors to the issuer: and

d. To provide for the monitoring and approval by the issuer’s audit committee of any service

provided to the issuer other than in their statutory audit role.”


The Company complies with this recommendation. The Board is committed to ensuring audit

independence, both in fact and appearance, so that the Company’s external financial reporting is

viewed as being highly objective and without bias. The Audit Committee reviews the quality and cost

of the audit undertaken by the Company’s external auditors and provides a formal channel of

communication between the Board, senior management, and external auditors.


The Audit Committee approves the auditor’s terms of engagement, audit partner rotation (at least

every five years) and audit fee and reviews and provides feedback in respect of the annual audit plan.

The Company’s current auditor is Vikas Gupta of UHY Haines Norton. The Audit Committee

periodically has time with the external auditor without management present. The Committee also

assesses the auditor’s independence on an annual basis.


All audit work of the Company is fully separated from non-audit services to ensure that appropriate

independence is maintained. There were no other services provided by Vikas Gupta of UHY Haines

Norton in year ending 31 March 2026 (FY26). The amount of fees paid to UHY Haines Norton for

audit and non-audit work are identified on note 8 of the Consolidated Financial Statements.


Vikas Gupta of UHY Haines Norton has provided the Committee with written confirmation that, in its

view, it was able to operate independently during the year.


Recommendation 7.2

“The external auditor should attend the issuer’s Annual Meeting to answer questions from

shareholders in relation to the audit.”


The Company complies with this recommendation. The Company’s auditor, Vikas Gupta of UHY

Haines Norton will be invited to attend the FY26 Annual Shareholders’ Meeting and will be available

to answer questions from shareholders at the meeting.

Third Age Health Services Limited
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77


Recommendation 7.3

“Internal audit functions should be disclosed.”


Given the size of the business the Company does not have an internal audit function. However, the

Company has a number of internal controls which are overseen by the Audit Committee and / or the

Board. These include controls for business continuity management, insurance, health and safety,

conflicts of interest, and prevention and identification of fraud.



Principle 8 – Shareholder rights and relations

“The board should respect the rights of shareholders and foster constructive relationships

with shareholders that encourage them to engage with the issuer.”


Recommendation 8.1

‘An issuer should have a website where investors and interested stakeholders can access financial

and operational information and key corporate governance information about the issuer.”


The Company complies with this recommendation. The Company’s website can be found at

https://www.thirdagehealth.co.nz.


Recommendation 8.2

“An issuer should allow investors the ability to easily communicate with the issuer, including by

designing tis shareholder meeting arrangements to encourage shareholder participation and by

providing shareholders the option to receive communications from the issuer electronically.”


The Company complies with this recommendation. The Board is committed to open and regular

dialogue and engagement with shareholders. The Company seeks to ensure that investors

understand its activities by communicating effectively with them and giving them access to clear and

balanced information.


The Company has a calendar of communications and events for shareholders, including but not

limited to:

• Half and full year results announcements and Annual Report.

• Market announcements.

• Annual Shareholders’ Meeting.

• Easy access to information through the Company’s website (https://www.thirdagehealth.co.nz).

• Access to management and the Board via a dedicated email address,

investors@thirdagehealth.co.nz.



Recommendation 8.3

“Quoted equity security holders have the right to vote on major decisions which may change the

nature of the issuer in which they are invested.”


The Company complies with this recommendation. Shareholders are actively encouraged to attend

the Annual Shareholders’ Meeting and may raise matters for discussion at this event and may vote on

major decisions that affect the Company. Voting is by poll, upholding the ‘one share, one vote’

philosophy.


Third Age Health Services Limited
Corporate governance


78


In accordance with the Companies Act 1993, the Company’s Constitution and the NZX Main Board

Listing Rules, the Company refers major decisions that may significantly change the nature of the

Company to shareholders for approval. All shareholders are given the option to elect to receive

electronic communications from the Company. In addition to shareholders, the Company has a wide

range of stakeholders and maintains open channels of communication for all audiences, including

brokers, the investing community, regulators, staff, customers and suppliers.


Recommendation 8.4

“If seeking additional equity capital, issuers of quoted securities should offer further equity securities

to existing equity security holders of the same class on a pro rata basis and no less favourable before

further equities are offered to other investors.”


In the event that the Company will seek additional equity capital, the Company will seek to offer

further equity securities to existing equity security holders of the same class on a pro rata basis and

no less favourable before further equities are offered to other investors.


Recommendation 8.5

“The board should ensure that the notices of annual or special meetings of quoted equity security

holders is posted on the issuer’s website as soon as possible and at least 20 working days prior to the

meeting.”


The Company has complied with this recommendation.

SHAREHOLDER AND STATUTORY INFORMATION
Third Age Health Services Limited

and subsidiaries

Third Age Health Services Limited
Shareholder and statutory information


80


1. Additional information required under the NZX listing rules


Twenty largest registered shareholders as of 30 April 2026


The Company has one class of equities, Ordinary Shares listed on the NZX Main Board under the

ticker code TAH.


The following table shows the names and holdings of the 20 largest registered holdings of listed

ordinary shares of the Company on 30 April 2026.


Shareholders Holding % of issued

capital

Bevan John Walsh 2,527,386 25.39%

FNZ Custodians Limited 1,920,796 19.30%

Lenore Deirdre Bauer 1,891,353 19.00%

Timothy Grant Livingstone & Robert Peter Webber 840,500 8.44%

Michael Haskell & Associates Limited 608,631 6.11%

New Zealand Depository Nominee 469,865 4.72%

Diane Lynn Budres 248,392 2.50%

Jsrf Limited 229,407 2.31%

New Zealand Central Securities Depository Limited 137,522 1.38%

David Mitchell Odlin 75,990 0.76%

Brian Hazelton Walsh 55,877 0.56%

A Taste of New Zealand Limited 50,000 0.50%

Bruce John Mccullagh 37,049 0.37%

Wayne Geoffrey Williams 34,068 0.34%

Dellow Nominees Limited 33,400 0.34%

Massey Pharmacy Limited 30,848 0.31%

Norah Kathleen Barlow & Robert Noel Barlow 24,490 0.25%

Excalibur & Arthur Smethurst & Leigh Smethurst 23,000 0.23%

Brett Hiirini Shepherd 20,529 0.21%

Pauline Ruth Burrell 20,000 0.20%

Total top 20 shareholders 9,279,103 93.22%

Remaining shareholders 675,388 6.78%

Total shares on issue 9,954,491 100%


Spread of shareholders as at 30 April 2026

The following table is the spread of listed shareholders as of 30 April 2026


Shareholder size

Number of

Holders

Total shares

listed

% of listed

capital

1-1,000 91 38,185 0.38%

1,001-5,000 76 223,868 2.25%

5,001-10,000 24 190,262 1.91%

10,001-50,000 26 496,457 4.99%

50,001-100,000 2 131,867 1.32%

Greater than 100,000 9 8,873,852 89.15%


228 9,954,491 100.0%


Third Age Health Services Limited
Shareholder and statutory information


81



Shareholding of Directors as of 31 March 2026


2026 2025

Director

Shares Shares

Bevan John Walsh

2,530,962 4,266,143

John Samuel Ronny Fernandes

229,407 203,857

Wayne Geoffrey Williams

34,068 -

Steffan Crausaz

1,593 -


2. Additional information required under the Financial Markets

Conduct Act 2013


Substantial security holders

Information on substantial security holders is provided pursuant to section 293 of the Financial

Markets Conduct Act 2013 (the “Act”) and details the substantial security holders in the Company and

their relevant interests in the Company’s shares as of 31 March 2026. A person has a substantial

holding for the purposes of the Act if the person has a relevant interest in quoted voting products that

comprise 5% or more of a class of quoted voting products of the listed issuer.


Investor name Shares held

at 31 March

2026

% of

issued

capital

Bevan John Walsh

2,530,962 25.43%

Michael Haskell & Associates Limited

2,510,104 25.22%

Lenore Deirdre Bauer 1,891,353 19.00%

Timothy Grant Livingstone & Robert Peter Webber (W W Flaunty Family

Account)

840,500 8.44%


3. Additional information required under the Companies Act 1993


Directors’ remuneration and other benefits

The names of the Directors of the Company who held office and the details of their remuneration and

value of other benefits received for services to Third Age Health Services Limited for the year ended

31 March 2026 were:



Board fees Audit

committee

fees


$ $

John Samuel Ronny Fernandes (resigned from audit committee from 13 October

2025)


60,000


1,322

Wayne Geoffrey Williams

35,000 10,000

Bevan John Walsh (appointed to the audit committee from 13 October 2025)

35,000 1,178

Steffan Crausaz

35,000 2,500



165,000


15,000


Third Age Health Services Limited
Shareholder and statutory information


82


Disclosure of Directors’ interests

The Company maintains an interests register in accordance with the Companies Act 1993 in which

Directors interests are recorded.


The following are particulars of interest by Directors holding office as at 31 March 2026 under section

140 (2) of the Companies Act 1993. The Director will be regarded as interested in any and all

transactions between the Company of any of its subsidiaries with the disclosed entity. In addition to

the information set out below, the following other interests were disclosed in the Company’s interest

register: the authorisation of Director’s remuneration; and entry into the Directors and officers’ liability

insurance policies, further detailed above and on page 72. The Directors are also indemnified to the

extent allowed by the Companies Act 1993 and the Company constitution.


Director Entity Relationship



John Samuel Ronny

Fernandes

Third Age Health Services Limited

(TAH)

229,407 Shares in the Company held by

JSRF Limited, in which John Fernandes

has a relevant interest as sole director and

shareholder.




Directors disclosed, pursuant to section 148 if the Companies Act 1993, the following relevant

interests in Third Age Health Services shares during FY26:


Name Date Nature of Transaction Consideration

per share

Number of

Shares

John Samuel

Ronny

Fernandes

29 August 2025 On market acquisition by JSRF

Limited of ordinary shares

$4.3544 4,584

14 January 2026 On market acquisition by JSRF

Limited of ordinary shares

$4.3994 20,966

Bevan John

Walsh

13 November 2025 Share transfer in connection with

settlement of relationship property

to Lenore Deidre Bauer

nil 1,734,853

13 November 2025 Option to acquire 149,317 shares

from Lenore Deidre Bauer

nil 149,317

19 March 2026 On market disposal of ordinary

shares

$5.05 328

Wayne Geoffery

Williams

4 June 2025 On market acquisition of ordinary

shares

$3.40 20,000

10 November 2025 Off market acquisition of ordinary

shares

$5.10 14,068

Steffan Crausaz 4 - 5 June 2025 On market acquisition of ordinary

shares through New Zealand

Depositary Nominee

$3.34 1,592.85



Indemnity and insurance

The Company has entered into deeds of indemnity in favour of all its Directors. The Company has

insured all its Directors against liabilities and costs in accordance with section 162(5) of the

Companies Act 1993.



Third Age Health Services Limited
Shareholder and statutory information


83


Employees’ remuneration

The number of employees or former employees, not being Directors of the Group, who received

remuneration and other benefits in their capacity as employees, the value of which exceeds $100,000

is set out below:


2026 2025

Number Number

$100,000 - $109,999 5 1

$110,000 - $119,999 2 3

$120,000 - $129,999 3 3

$130,000 - $139,999 3 1

$140,000 - $149,999 - 1

$150,000 - $159,999 2 1

$160,000 - $169,999 1 1

$170,000 - $179,999 1 1

$180,000 - $189,999 2 2

$190,000 - $199,999 5 3

$200,000 - $209,999 1 1

$210,000 - $219,999 - -

$220,000 - $229,999 3 3

$230,000 - $239,999 1 -

$240,000 - $249,999 1 -

$250,000 - $259,999 - -

$260,000 - $269,999 - -

$270,000 - $279,999 - -

$280,000 - $289,999 - -

$290,000 - $299,999 - 1

$300,000 - $309,999 - -

$310,000 - $319,999 - -

$320,000 - $329,999 - -

$330,000 - $339,999 - -

$340,000 - $349,999 - -

$350,000 - $359,999 - -

$360,000 - $369,999 - -

$370,000 - $379,999 1 -

$380,000 - $389,999 - 1

31 23



Third Age Health Services Limited
Shareholder and statutory information


84


Subsidiaries of Third Age Health Services Limited within the Group


The following persons held office as directors of the company’s eight subsidiaries as at 31 March

2026.


Subsidiary Jurisdiction Directors

Hawkes Bay Wellness Centre

Limited

New Zealand John Samuel Ronny Fernandes

Geraldine Bromley

Belmont Medical Centre Limited New Zealand John Samuel Ronny Fernandes

Geraldine Bromley

Ponsonby Medical (Third Age

Health) Limited

New Zealand John Samuel Ronny Fernandes

Geraldine Bromley

Devonport Family Medicine

(Third Age Health) Limited

New Zealand John Samuel Ronny Fernandes

Geraldine Bromley

EastMed St Heliers Limited New Zealand John Samuel Ronny Fernandes

Sivanadiyan Nachiappan

Simon Clive Garlick

Hub Aged Care Limited New Zealand John Samuel Ronny Fernandes

Niomi Martha Fleming

Balram Singh Dhillion

Cicada Health Limited New Zealand John Samuel Ronny Fernandes

Niomi Martha Fleming

Anthony Selwyn March

ARC Health Limited New Zealand John Samuel Ronny Fernandes

Niomi Martha Fleming


NZX waivers


No waivers were granted by NZX or relied on by the Company during FY26.


Credit rating


Third Age Health Services Limited does not have a credit rating.


Auditor remuneration

Fees payable to our auditor, Vikas Gupta of UHY Haines Norton of $94k relates to fees for the annual

audit of the Consolidated Financial Statements (2025: $104k).


Vikas Gupta of UHY Haines Norton has provided no other services during the FY26 and has only

received remuneration for the annual audit.



Donations

The Company made $3,300 charitable donations during the year ended 31 March 2026.

Third Age Health Services Limited
Corporate directory


85




Registered office

536 Kennedy Road

Greenmeadows, Napier


New Zealand company number

3189884


Directors

John Samuel Ronny Fernandes (Executive Chairman)

Bevan John Walsh (Non-Executive Director & founder)

Wayne Geoffrey Williams (Independent)

Steffan Crausaz (Independent)



Auditors

Vikas Gupta from UHY Haines Norton

Level 9

1 York Street

Sydney

NSW 2000

Australia


Registry

MUFG Corporate Markets

Level 30, PwC Tower

15 Customs Street West, Auckland 1010

mpms.mufg.com Phone:(09) 375 5998

Email: enquiries.nz@cm.mpms.mufg.com


Legal advisors

DLA Piper New Zealand

20 Customhouse Quay

Wellington 6140

New Zealand

www.dlapiper.com/en/newzealand/


Flacks and Wong Limited

Level 5, Shortland Chambers Building

70 Shortland Street

Auckland 1140

New Zealand

https://www.flackswong.co.nz/




Third Age Health Services Ltd
PO Box 303 387

North Harbour, Auckland 0751

thirdagehealth.co.nz

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