Aevum reports $15m loss

In a sign of the times, retirement living provider, Aevum has reported a $15 million after-tax loss in the first half of the 2009 financial year.

The loss represents a shift for the company which posted an $11 million profit for the same period 12 months earlier.

Aevum is one of the largest operators of for-profit retirement villages in New South Wales. It also operates villages in Western Australia

Poor market condition are being blamed for the result.

The company said it had experienced slowed transactions and reduced assets valuations since June last year.

“It is disappointing to report a loss for the half year although this reflects a recognition of the market impact on the assets Aevum owns rather than the underlying quality of our operating business and the ongoing community demand for retirement accommodation,” said the company’s Managing Director Steve Mann.

A declining occupancy rate across the group’s retirement division saw it record a pre-tax loss of $18.2 million, significantly down on the $16.1 million profit the year before.

On a brighter note, the company’s aged care division has reported a pre-tax profit of $300,000.

In the six months to December 2008, Aevum managed to increase the levels of its accommodation bonds, while experiencing ongoing success with ‘extra services’ beds in two of its facilities.

Independent assessments of the company’s aged care assets also resulted in a $14.1 million increase in valuations.

Aevum said it hopes to report a profit of $3 million to $5 million in the six months to June, leading to a net after-tax loss of $10 million to $12 million for the 2009 fiscal year.