Profits up for new corporate player
Babcock and Brown Communities (BBC) has received a boost to its share price after it posted an $18.2 million half year after-tax net profit.
Shares in Babcock and Brown Communities (BBC) received a boost when it reported a half-year after tax net profit of $18.2 million (26 Feb 08). This was the first financial report following the creation of BBC and its subsequent acquisitions in both retirement living and aged care.
CEO and managing director, John Martin, said the company’s core retirement living business achieved EBITDA of $55m which included revaluation uplifts of $20.2m, largely due to the introduction of new resident contract terms bringing BBC into line with other major competitors.
He said the company’s aged care business was performing in line with budget, with forecast FY EBITDA of $7,200 per bed for the full year.
“The integration of the Conform [Conform Health Group, acquired November 2007] acquisition is progressing well and we expect Conform to be a significant contributor to our second-half aged care results,” Mr Martin said.
Looking ahead, Mr Martin said the priorities for the second-half of the financial year are the ongoing roll-out of the buy-back and refurbishment program, which he said would continue to drive both resales and property growth rates across the retirement portfolio.
“On the development front, the priority will be on converting the existing reservations into settlements and continuing to build the reservation pipeline. The delivery of four community centres over the next few months is also expected to assist with sales momentum and price growth,” he added.
“Our strong organic growth pipeline continues to be replenished as we are continually reviewing opportunities for further extensions or infill development within our existing villages.”
He said the Aged Care business’s priority will be on extracting value from the integration of the Conform portfolio into the group.
“In addition, the business is ready for the implementation of the new government funding regime allowing management to focus on other operational priorities including filling ramp-up facilities and development of new facilities,” he said.
