Promisia FY20/21 Financial Results

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)




Results for announcement to the market
Name of issuer Promisia Healthcare Limited
Reporting Period 15 months to 31 March 2021
Previous Reporting Period 12 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$6,060 100%
Total Revenue $7,310 100%
Net profit/(loss) from
continuing operations
$42 Prior year loss
Total net profit/(loss) $65 Prior year loss
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend for FY21
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0008 -$0.0006
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Revenue reflects 5 months of trading since the acquisition of,
and entering, the aged care business on 30 October 2020. Prior
year activities reported under discontinued operations.
Authority for this announcement
Name of person

authorised
to make this announcement
Stephen Underwood
Contact person for this
announcement
Stephen Underwood
Contact phone number 027 499 3387
Contact email address stephen@renouf.co.nz
Date of release through MAP

28/5/2021

Unaudited financial statements accompany this announcement.

---

Market Announcement
28 May 2021
PROMISIA FY20/21 FINANCIAL RESULTS
For the 15 months ended 31 March 2021
Promisia Healthcare Limited (NZX: PHL) has delivered its first financial result as an aged care
business following the completion of the acquisition of an aged care business on 30 October 2020.
The results released today include unaudited financial information. The audit is being finalised.
The result covers the 15 months ended 31 March 2021 following the change of the company’s
balance date to 31 March and includes five months of trading as an aged care business.
Income was $7.3m, including an increase in fair value movement of investment properties of
$1.25m. Promisia operates four aged care facilities (3 owned, 1 leased), offering respite, rest home,
hospital and dementia care. Revenue is primarily sourced from Government funding (68%) with the
remainder from private payment. Eleven resales of occupation rights agreements (ORAs) were
completed during the five-month period.
Earnings excluding fair value movements (EBITDAF
1
) were $(0.2)m for the period. Acquisition related
transaction costs of $0.8m are included in this result. A loss of $(0.734)m was reported for the six-
months ending 30 June 2020.
The Group reported a net profit after tax on continuing operations of $0.042m, with a total profit
from continuing and discontinuing operations of $0.065m. At 31 March 2021, total assets were
$59.1m, net debt was $17.8m and the Group had cash and cash equivalents of $1.2m.
Growth strategy: Opportunities underway
The company is opening rooms progressively at its newest facility, Aldwins House in Christchurch, as
demand grows.
Promisia has identified opportunities to broaden its revenue mix from existing greenfield and
brownfield development opportunities, particularly from the building of independent living
retirement villas. Construction of a further 42 villas and apartments at its Ranfurly facility in Feilding
is underway.
Acquisitions will be considered based on contribution to profitability, quality, geographic and
cultural fit, demand for services, and growth potential. In particular, the company will investigate
acquisition of other aged care facilities in provincial New Zealand.
Outlook
Chair of Promisia, Stephen Underwood, said the Group was building off an established base, in an
attractive sector with good growth dynamics.

1
EBITDAF is operating earnings before interest, tax, depreciation, amortisation and fair value adjustments and
is a non-GAAP number.

“The number of people aged over 75 years will double in the next 10 years and new facilities will
need to be built to meet demand, particularly for higher needs and specialised care. In addition,
increasing compliance is driving sector consolidation with smaller facilities finding it more difficult to
remain viable.
“Promisia is well positioned to capitalise on this demand. We are a valued part of the communities
where we are located and provincial New Zealand will remain a focus for us – these are communities
that are often under-resourced in terms of aged care and are not a priority for larger retirement
village developers.
“We have a carefully considered and diversified growth strategy and are already taking advantage of
the development opportunities available to us. We look forward to building our business and
delivering increasing value to our shareholders.”
ENDS
For more information, please contact:
Stephen Underwood, Chairman on +64 27 499 3387 or email stephen@renouf.co.nz
For media assistance, please contact: Jackie Ellis on +64 27 246 2505 or email
jackie@ellisandco.co.nz.
About Promisia
Promisia operates four aged care facilities, (being rest home, hospital and dementia care). It also
offers independent living in retirement villas and apartments. Promisia’s facilities are located in well
established and well serviced towns with strong communities. The Group 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).

---

Unaudited
Unaudited
15 months ended
12 months ended
31 March 2021
31 December 2019
$000
$000
Revenue
6,060


-


Fair value movement of investment properties
1,250


-


Total Income
7,310


-


Administration expenses
(1,739)


(294)


Operating expenses
(4,555)


-


Depreciation and amortisation expense
(377)


-


Finance Costs
(1,008)


-


Total Expenses
(7,679)


(294)


Net gain/(loss) before income tax
(369)


(294)


Income tax credit
411


-


Net gain/( loss) for the period from continuing operations
42


(294)


Discontinued operations
Profit/(Loss) for year after tax from discontinued operations
30


(2,107)


Other comprehensive income
Items that may be later reclassified to profit or loss
Gain / (Loss) on translation of foreign currency
(7)


1


Total other comprehensive income
(7)


1


Total comprehensive income gain/(loss)
65


(2,400)


Earnings Per Share (cents per share)
Basic & diluted earnings per share from continuing operations
0.0006


(0.0151)
Basic & diluted earnings per share from discontinued operations
0.0000


(0.1237)
Promisia Healthcare Limited
Unaudited Consolidated Statement of Comprehensive Income
For the 15 months ended 31 March 2021

Issued
Foreign
Pooling of
Accumulated
Total
Capital
Currency
Interests
Losses
Reserve
Reserve
$000
$000
$000
$000
$000
Year ended 31 December 2019 unaudited
Opening balance
58,278


182


-


(57,662)


798


Net loss for period
-


-


-


(2,401)


(2,401)


Other comprehensive income / (loss)
-


1


-


-


1


Share issue
248


-


-


-


248


Closing balance at 31 December 2019
58,526


183
-


(60,063)


(1,354)


15 months ended 31 March 2021 unaudited
Opening balance
58,526


183


-


(60,063)


(1,354)


Net gain/(loss) for period
-


-


-


72


72


Other comprehensive income / (loss)
-


(7)


-


-


(7)


Pooling of interest reserve
-


-


(516)


-


(516)


Share issue
18,869


-


-


-


18,869


Less share issue costs
(335)


-


-


-


(335)


Closing balance at 31 March 2021
77,060


176


(516)


(59,991)


16,729


Promisia Healthcare Limited
Unaudited Consolidated Statement of Changes in Equity
For the 15 months ended 31 March 2021

Unaudited
Unaudited
31 March 2021
31 December 2019
$000
$000
Equity
Share capital
77,060


58,526


Accumulated losses
(59,991)


(60,063)


Pooling of Interest Reserve
(516)


-


Foreign currency translation reserve
176


183


Equity
16,729


(1,354)


Represented by:
Assets
Cash and cash equivalents
1,219


21


Trade and other receivables
1,919


55


Taxation Receivable
-


6


Related party advances
953


-


Property, Plant & Equipment
4,756


3


Right-of-use asset
9,285


-


Investment Property
40,677


-


Deferred Taxation
280


-


Total assets
59,089


85


less
Liabilities
Trade and other payables
2,836


584


Taxation Payable
118


-


Related party loans
1,000


855


Interest Bearing Loans & Borrowings
17,833


-


Lease Liability
10,040


-


Occupancy rights agreements
10,533


-


Total liabilities
42,360


1,439


Net assets / (liabilities)
16,729


(1,354)


Promisia Healthcare Limited
Unaudited Consolidated Balance Sheet
As at 31 March 2021

Unaudited
Unaudited
15 months ended
12 months ended
31 March 2021
31 December 2019
$000
$000
Operating Activities
Receipts from residents for care fees and services
4,247


-


Receipts of residents' loans from new sales
1,590


-


Payments to suppliers and employees
(4,316)


(294)


Repayments of residents' loans
(434)


-


Interest paid
(1,008)


-


Income tax
243


-


Net operating cash flows from discontinued operations
42


(574)


Net operating cash flows
364


(868)


Investing activities
Acquisition of aged care assets
(22,257)


-


Purchase of property, plant & equipment
(4,852)


-


Net investing cash flows from discontinued operations
-


73


Net investing cash flows
(27,109)


73


Financing activities
Drawdown of loans
19,000


57


Issue of share capital, net
8,665


247


Payments for lease liabilities
432


-


Repayment of borrowings
(154)


-


Net cash flow from financing activities
27,943


304


Net increase / (decrease) in cash and cash equivalents
1,198


(491)


Cash and cash equivalents and beginning of period
21


512


Cash and cash equivalents at end of period
1,219


21


Promisia Healthcare Limited
Unaudited Consolidated Statement of Cash Flows
For the 15 months ended 31 March 2021