MET - Metlifecare Announces Full Year Result

Metlifecare Limited Ordinary shares | 11:03 am, 27 Aug

MET
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Market Announcement
Type:FLLYR

MET - Metlifecare Announces Full Year Result

Metlifecare Limited
Results for announcement to the market

Reporting Period Year to 30 June 2009
Previous Reporting Period Year to 30 June 2008

Amount (000s) Percentage change
Revenue from ordinary activities $NZ58,558 0.34%
Profit (loss) from ordinary activities after tax attributable to security holder. ($NZ115,702) - 118.02%
Net profit (loss) attributable to security holders. ($NZ115,702) - 118.02%

Interim/Final Dividend Amount per security Imputed amount per security
It is not proposed to pay
dividends Not Applicable

Record Date Not Applicable
Dividend Payment Date Not Applicable

Comments: Refer below


27 August 2009

NZX MEDIA RELEASE

METLIFECARE ANNOUNCES FULL YEAR RESULT

Metlifecare Limited today reported a loss of $115.7 million (2008: $(53.1) million) after accounting for non-operating non-cash items including the revaluation of investment properties and financial instruments as required under the International Financial Reporting Standards (IFRS).

In announcing the result, the Company’s Chairman, Dr Charles MacDonald, said, “The main contributor to the headline loss was a reduction in the valuation of Metlifecare’s property portfolio which declined $106.9 million as a result of a revaluation, after capitalised expenditure and the reclassification of a jointly held asset. At the end of the period, the Group’s investment properties were valued at $1.129 billion (2008: $1.176 billion).”

“As mentioned in last year’s report, under IFRS, the change in investment properties valuation is recorded in the income statement while under previous accounting standards the movements were recorded in balance sheet reserves. This change has introduced volatility to Metlifecare’s income statement based on an assessment of future market conditions which distracts from our operational performance in the current period.”

“Cash flows from relicensing activities were down on the prior year as a result of the downturn in residential housing, but occupancy levels were maintained resulting in operating revenue $58.6 million being flat with the prior year (2008: $58.4 million). Management responded to the trading conditions by reducing operating expenses, although this was partly offset by higher financing costs.”

“The effect of the housing downturn was that potential new residents found that it was either very difficult or that it took much longer than they anticipated to sell their homes in order to fund entry to our villages. Having said that, leads and inquiries for Metlifecare villages were significantly higher than the previous year, (65% growth in FY09), which encourages me to believe that Metlifecare will enjoy enhanced trading conditions when the recovery in the housing market gains momentum.”

“We have a very motivated management team lead by our new CEO, Mr Alan Edwards, and new General Manager of Sales, Ms Jan Martin, and we approach the new financial year with optimism. In June, the Company opened the first stage of its new retirement village complex at Takapuna, which creates a new market for Metlifecare.”

“Metlifecare proactively engaged with its banks to secure its funding lines and in March completed a highly successful and oversubscribed renounceable rights issue which raised $37.4 million of new capital,” Dr MacDonald said. “In the interests of prudent capital management, the directors resolved that no dividend would be paid.”

As at 30 June 2009, Metlifecare owns and operates 17 lifestyle villages incorporating 10 care facilities. Across these villages, Metlifecare has 2,470 villas and apartments providing a continuum of care for more than 3,300 residents.

-Ends-

For further information please contact:

Dr Charles MacDonald
Chairman
Metlifecare Limited

Phone: +61 404 811 855


Michael Barker
Chief Financial Officer
Metlifecare Limited

Phone: 09 539 8000