Regis Healthcare Limited (ASX: REG) has announced its FY24 half-year results, showcasing substantial growth in key metrics despite challenges within the aged care sector. Notably, while reporting a statutory net loss after tax of $12.1 million, largely influenced by non-cash bed license amortisation (this marks the final write-down of bed license value), the company saw impressive increases across various financial indicators.
Revenue surged by 26% to $480.1 million, with underlying EBITDA reaching $52.1 million, up by 16% compared to the previous corresponding period (pcp). Net profit after tax attributable to shareholders (NPATA) increased by 527% to $16.3 million, and net operating cash flow increased by 145% to $151.9 million, including a substantial net cash inflow from refundable accommodation deposits (RADs), which accounted for $42.9 million.
Operational highlights include a significant rise in average occupancy to 93.6%, the successful acquisition of CPSM Pty Ltd, improvements in overall star ratings, and an increase in total care minutes provided.
In a release, Regis’ Managing Director and CEO, Dr Linda Mellors, expressed satisfaction with the company’s performance, highlighting growth despite regulatory challenges and the completion of organisational redesign ahead of mandated care minute requirements.
“The Government’s aged care reform agenda continues to challenge the sector with additional reporting, regulation and compliance requirements being placed on providers. Importantly, funding has improved with increases to AN-ACC on 1 July 2023 and 1 December 2023. The Government’s Aged Care Taskforce reviewed sector funding arrangements during the second half of 2023 and we anticipate the release of their recommendations will address critically needed long-term funding,” Dr Linda Mellors added.
Looking ahead, Regis expects to benefit from recent acquisitions and additional government funding, together with strategic acquisitions and greenfield developments.
The Board of Directors resolved to pay an interim dividend of 6.28 cents per ordinary share
(50% franked) payable 11 April 2024
