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JHC

Japara Healthcare Limited - Report FY19 Results

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Japara Healthcare Limited (ASX: JHC) is a leading provider of aged care services with over 3500 individuals within their care and 5000 staff dedicated to their wellbeing, the Company operates 48 homes that also provide facilities for independent living close to the healthcare services within each home.

Japara Healthcare ltd FY19 results

What are the FY19 results for JHC?

This morning (26th August 2019) Japara Healthcare Limited reported their FY19 results that are highlighted below:

  • Total revenue up 7.1% to $399.4m
  • Net Profit After Tax (NPAT) down 29.6% to $23.3m
  • Reported EBITDA down 2.2% to $49.6m, recurring EBITDA up 2.5% to $48.6m
  • Total FY19 dividend distribution of 6.15 cents per share
  • Opening of four additional homes and refurbishment of another six
  • 100% accreditation record with over 57 unannounced assessment visits
  • Near term acquisition of an additional 1100 patient places.

 

What are the key drivers of this result?

Japara has invested heavily in their business model throughout FY19 improving the living conditions of their customers with the addition of new technology and homes. This was the major factor resulting in JHC’s decline in profit as $99.4m was spent on development, the Company also reported a decline in government subsidies and an increase in wage costs.

 

What is the future outlook for JHC?

Japara has reported FY 2020 guidance of EBITDA 5-10% lower than FY19 as a result of continued declines in government subsides and sustained historically low occupancy rates of 93%. The Company is continuing its strategy of increasing occupancy capacity in the medium term in order to attempt to offset these declines. JHC has stated its policy regarding dividend payout ratios are to be 100% of NPAT compared with 88% in FY18.

 

How has the market reacted?

The share price has decline 0.95% to a price of $1.04 in response as investors are weary of the fall in NPAT however are also encouraged by JHC’s 100% dividend payout ratio.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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