Summerset set for large profit

Summerset's retirement village in Dunedin. Photo by Peter McIntosh.
Summerset's retirement village in Dunedin. Photo by Peter McIntosh.

Retirement village operator Summerset is being tipped by analysts to book a more than 40% profit increase for its full-year result, remaining on target to continue its strong level of development this year.

Summerset is scheduled to deliver its full-year 2013 result today, with Forsyth Barr broker Haley Van Leeuwen and Craigs Investment Partners broker Peter McIntyre each predicting after-tax profit up more than 40%, at respectively $21.8 million and $21 million.

Summerset had expected to develop at least 200 new units last year, 200 for 2014 and and forecast 300 during 2015.

Ms Van Leeuwen said Summerset ''should'' achieve its 2013 targets and expected it to confirm the 300 units in 2015, given progress of its development pipeline last year and new-build rate.

She picked revenue up 23.6%, from $53.2 million a year ago to $65.8 million, and after-tax profit up 43.5%, from $15.2 million to $21.8 million.

Mr McIntyre highlighted that Summerset maintained a five-year, development land bank and that results from 2012 and first half 2013 demonstrated its development model was working well.

He predicted revenue up from $53.2 million a year ago to $88 million, and after-tax profit up from $15.2 million to $21 million.

simon.hartley@odt.co.nz


Summerset

• NZ's third-largest provider

• 17 villages

• 1646 retirement units

• 327 care beds

Source: Craigs Investment Partners


ODT/directory - Local Businesses

CompanyLocationBusiness Type
Queenstown OsteopathyQueenstownAlternative Health Services
Ali Brosnan Family Hair CareOamaruHairdressers
TradeSkillsDunedinHome & Garden Maintenance
Omakau Domain Camping GroundAlexandraHoliday Parks