Promisia Healthcare Interim Results

Market Announcement 29 November 2021 PROMISIA HEALTHCARE INTERIM RESULTS For the six months ended 30 September 2021 Aged care provider, Promisia Healthcare Limited (NZX: PHL) has reported its unaudited results for the six months to 30 September 2021. The company commenced operation as an aged care business in October 2020. The prior comparative period of the 15 months to 31 March 2021 reflects 5 months of trading as an aged care provider. The 6 months to 30 June 2020 reflects discontinued operations only. Promisia has a diversified growth strategy focused on facility development, broadening its revenue mix and acquisition of further aged care and retirement village facilities, particularly in provincial areas. The company currently has a portfolio of four aged care facilities (three owned and one leased), focused on rest home and hospital services, including high needs and specialised aged care. During the recent COVID lockdowns and restrictions, the priority has been on delivering quality care and ensuring the safety of residents, particularly given the higher care needs of many residents. All on-site staff are fully vaccinated and robust health and safety protocols are in place. During the six month period, the company's leadership team was strengthened with the appointment of Chris Brown as CEO from 23 August 2021 and Angie Mehlhopt as the group's Financial Accountant in July 2021. The new executive team is focused on integrating and establishing systems across the group and executing Promisia's growth strategy. Good progress has been made on the development at Ranfurly Manor in Fielding which comprises 32 villas and 10 care suites. The care suites are due to be completed in the next two weeks and sales and marketing of these suites is now underway. Eight villas have been sold. The first four villas are expected to be ready for occupancy at the end of January 2022, a further four villas are currently under construction with another four about to commence. Construction is being carried out at no capital cost to PHL, with the purchase price to be paid to the developer (Colspec) from proceeds of the initial sale of an ORA for each new villa or care suite. Rooms are also being opened progressively at Promisia's newest facility, Aldwins House in Christchurch, as demand grows which is currently at a slower rate than anticipated. New management and clinical teams have been put in place and a range of opportunities are being investigated to grow demand and minimise outgoings. Discussions with the landlord to acquire the building are ongoing. Occupancy levels at Promisia's other facilities remain strong. CEO of Promisia, Chris Brown, said: "The team has done an outstanding job during yet another challenging period, as we focused on keeping our residents well cared for and safe during the latest COVID restrictions. Our immediate focus is on growing occupancy and revenue at our existing facilities, particularly Aldwins House, and building our systems infrastructure to support growth. The development at Ranfurly Manor is progressing well and we are looking forward to welcoming new residents into these care suites and villas in the next few months." Chair of Promisia, Stephen Underwood, said: "It is a year since the successful acquisition of the aged care business. This acquisition has enabled us breathe new life into Promisia and provide a good platform for growth. The aged care sector is projected to grow strongly over the next ten years, particularly for higher needs and specialised care. Provincial communities are often under-resourced in terms of aged care. Promisia is a valued part of the communities where it is located and provincial New Zealand will remain a focus for us. Acquisitions continue to be considered based on quality, geographic and cultural fit, demand for services, growth potential and contribution to profitability. We are pleased to have a new leadership team in place and we are building our business to capitalise on long term demand." Financial Performance Revenue for the six months was $8.8m and is expected to grow as occupancy levels (particularly at Aldwins House) and ORA sales increase. The company reported a net loss from continuing operations of $111,000, with a total loss from continuing and discontinuing operations of $92,000. As at 30 September 2021, total assets were $57.0m, net debt was $17.5m and the company had cash and cash equivalents of $1.2m. As disclosed previously, during the period Promisia concluded a constructive dialogue with its banking partner, BNZ, regarding its banking covenants. The BNZ advised that no actions would be taken in respect of the EBITDA / Interest covenant breaches in the June and September 2021 quarters (although BNZ reserves all of its rights with respect to the breaches); and has provided a waiver and removed the Total Debt / Total Assets covenant as an ongoing requirement. ENDS For more information, please contact: Chris Brown, CEO on +64 21 379 153 or email chris.brown@promisia.co.nz For media assistance, please contact: Jackie Ellis on +64 27 246 2505 or email jackie@ellisandco.co.nz. About Promisia Healthcare Promisia operates four aged care facilities, specialising in high needs and specialised aged care (being rest home, hospital and dementia care). It also offers independent living in retirement villas and care suites. Promisia's facilities are located in well-established and well serviced towns with strong communities and close to main centres. The company has a diversified growth strategy that includes growing its portfolio, developing existing facilities and extending its revenue mix. Promisia is listed on the NZX (NZX: PHL). www.promisia.co.nz End CA:00383775 For:PHL Type:HALFYR Time:2021-11-29 15:04:51