Promisia Healthcare Limited Analysis

Overview

Promisia Healthcare Ltd is a public company listed on the NZX. It was formed in August 1983 as Genestock NZ Ltd. and has remained as a listed company undertaking a number of diverse activities over the last 30 years. The company came under the control of the current major shareholders and directors in 2003/4 and for some years remained a listed shell company, i.e. the company remained listed on the NZX but it did not have any substantive trading activity. For a period of time the company researched and marketed a dietary supplement called Arthrem and then in October 2020 moved in to the current aged residential care business.

The business's principal activity is the provision of rest home and hospital level care. In addition, care is offered for dementia, respite, palliative and for younger people with lifelong disabilities (YPD).

Promisia Healthcare Ltd currently owns and operates four aged care facilities comprising of 404 care beds. In addition, Promisia operates two retirement villages comprising of sixteen villas. There are also a further 28 villas and 10 care suites in an advanced stage of construction.

Performance

The following information was extracted from Promisia Healthcare Limited's Full Year results, released 29 May 2025

FY25 Results Summary:

• 37% year-on-year increase in operating revenue, up to $31.08 million
• Underlying EBITDAF of $4.2 million, up 11.5%
• Net profit after tax of $6.8 million, up 318%

-104% increase in total assets to $172 million

-Reduction in the weighted average interest rate from 9.0% to 7.1%

-Improvement in loan-to-value ratio from 48.8% to 42.9%

• Net Tangible Assets per share rose to 79 cents, up 25% year on year

Financial Highlights

FY25 was marked by a disciplined execution of a clear and focused strategy leading to a strong delivery across all key financial measures. During the year, we acquired two care facilities and villages in Cromwell, completed the sale of the Eileen Mary facility, executed a successful $4.7 million capital raise and share/warrant consolidation and undertook a full debt restructure that consolidated all interest-bearing bank debt under Bank of New Zealand.

Revenue for the year increased 37% to $31.08 million, driven by the inclusion of the Cromwell acquisitions, increased occupancy across several key facilities and growth in deferred management fees from villa and care apartment sales.

The increased scale of the business following the Cromwell acquisitions and associated implementation costs led to an increase in operating expenses to $23.9 million. While administration expenses also grew, we maintained focus across central overheads and discretionary spending, resulting in a slower rate of growth relative to increased revenues.

Underlying EBITDAF rose 11.5% to $4.2 million in line with our market guidance. Net profit increased materially, reflecting both the improvement in operational earnings and the recognition of a $6.6 million gain on purchase from the acquisitions of Golden View and Ripponburn.