Aevum boost profits

Aged care provider Aevum Ltd has lifted its annual profit by 24 per cent after acquisitions helped boost revenue from its core retirement business.

Aevum have released figures showing their net profit for the year ended June 30, 2008 was $28.55 million, up from $22.9 million in the previous year. The company said it continued to experience strong demand in its retirement living and aged care operations and expected a strong fourth quarter in 2007/08 but the softening property market and delays by incoming residents selling their homes had affected the result.

Aevum said the key challenge for the New Year would be to maintain and grow occupancy levels across its retirement portfolio.

“Demand across the portfolio remains firm, with over $22 million in reservations and pre-sales presently in place,” Aevum chief executive Simon Owen said.

“Across our portfolio of 21 villages, we presently have 15 villages operating above our long-term occupancy rate of 95 per cent, including four operating at 100 per cent capacity.”

The company had also commenced the acquisition of residential land adjacent to high-demand villages to allow for future village expansion.

Operating revenue for the retirement division was $46 million for the year, up 32 per cent, while earnings before interest and tax (EBIT) for the division rose 21 per cent to $38.2 million.

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