Aevum announces another big profit

Aevum has reported a net, after-tax profit of $10.9 million for the half-year ending 31 December, 2007.

Retirement village and aged care facility operator Aevum  has once again announced a major after-tax profit.

The $10.9 million for the half-year ending 31 December, 2007 is a 41 per cent increase on the $7.8 million reported for the previous half-year.

Aevum says its retirement villages are on track to record more than 4.5 per cent in sales price growth for the year, with the business experiencing strong demand for its retirement product.

In the latest half-year, Aevum achieved a 95 per cent occupancy rate across its 15 villages which together brought in a pre-tax earning of $16 million.

“The results for the six months were pleasing, in line with internal forecasts and were driven by continuing improvement in the core drivers of the business as measured by occupancy rates and sales price growth,” said CEO, Simon Owen.

The company purchased three new villages in this period and it said in a statement that further acquisitions are likely.

Aevum’s development pipeline is set to deliver an additional 496 units across its existing portfolio and is expected to be a key driver of earnings and cash flow growth in the 2009 financial year.

The aged care side of the business had pre-tax earnings of $0.7 million.

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