Regis Healthcare rallies despite reporting a lower HY profit
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More news: Shares in Regis Healthcare rallied in morning trade despite the company reporting a 45.1% decrease in statutory net profit driven by one-off acquisition costs
Shares have risen 8.08% to $6.90 per share at 1:16pm AEDT.
Milford investment analyst Kate Power said government funding reforms are supporting revenue growth and helping to offset cost pressures across the aged care sector. She said the balance sheet remains robust, with a net cash position providing capacity to pursue acquisitions and fund new developments.
She added that while aged care is a highly regulated sector, favourable structural tailwinds continue to underpin Regis Healthcare’s earnings outlook.
Regis Healthcare HY profit falls 45.1% on acquisition costs
The news: Aged care operator Regis Healthcare has reported underlying half-year net profit of $29.7 million, a slight increase from $29.6 million a year ago.
The numbers: Statutory net profit, however, was 45.1% lower to $13.4 million, primarily driven by one-off costs related to the Rockpool and OC Health acquisitions.
Underlying earnings before interest and tax was 0.9% higher to $44.8 million, while service revenue came in at $667.7 million, up from $564.2 million year-on-year.
The company declared a fully franked interim dividend of 9 cents per share.
The context: The company said the lower statutory net profit was weighed down by costs related to the Rockpool and OC Health acquisition during the period, totalling $12.8 million. This also included $4.4 million in employee entitlement costs and $1.6 million on IT investments.
Regis Healthcare forecast FY26 EBITDA in the range of $130 million to $135 million.
The board also said it has commenced a search for a new CEO following the resignation of Linda Mellors in December.
The source: ASX
