Third Age Health Services Limited Analysis

Overview

Third Age Health is a provider of primary care services to the aged residential care ("ARC") sector and, through Hawkes Bay Wellness Centre, the general population. Third Age Health provides these services by way of both physical attendances and offsite service provision.

Third Age Health primarily generates revenue through its services under contracts for service with ARC providers, who pay fees to Third Age Health according to those contracts. Third Age Health also generates revenue when we enrol a patient into our practice, or when we provide services through our primary care medical centre. In order to generate revenue, Third Age Health must have two things: patients who want us to provide them services, and suitably qualified healthcare personnel willing to provide services to these patients.

Performance

The following information was extracted from Third Age Health Services Limited's full year announcement, released 30 May 2025:

Third Age Health delivers 2H underlying NPATA1 of $1,525k up 12.0% on 1H, and FY25 underlying NPATA1 of $2,886k up 69.0% on FY24

FY25 Business Highlights

Third Age Health (TAH) is New Zealand’s leading provider of quality health care services for older people; supporting those living in care homes, hospital level care, secure dementia units, retirement villages and in their own homes. TAH currently provide services to 90 Aged Residential Care (ARC) facilities throughout the country, including some of the largest aged care providers in New Zealand. In addition, Third Age Health has a family of general practices providing quality primary healthcare for local communities.

• Growth: TAH has significantly expanded its national footprint and market share in FY25.
• increased the number ARC patients we provide care to an estimated 17%1 of ARC population across NZ and
• Grew our combined enrolled patient population across both ARC and general practice by 3%.
• Our core Aged Care business NPATA2 grew by 51%, while General Practice grew by 135% over PCP3.
• Clinical Team and People: We had 112 clinicians work with us during FY25, a 29% increase from the prior year, with the number of clinicians across both ARC and GP settings making up 72% of the overall Third Age Health team (74%, FY24).

Financial Performance

• Revenue of $ 19.081m (+$3.9m up 26%): Revenue growth was significant in ARC (+$3.5m) and moderate in General Practice (+0.4m). There were no new acquisitions of general practices during the year. However, Hub Aged Care Limited was acquired adding $1.2m to the ARC segment of revenue in FY25. The main driver of revenue growth in General Practice was service increases based on further capacity improvement. In ARC, the main driver was the number of ARC facilities serviced.
• Underlying NPATA2 of $2,886k up 69.0% from FY24: underlying NPATA2 is adjusted for noncash amortisation charges arising from purchase accounting rules. NPATA2 growth was significant in both ARC of 50.7% to $2.01m and in General Practice of 135% to +$0.87m.
• Cashflow: Cash and cash equivalents increased to $2,594k in FY25 (FY24: $1,695k). This signifies an improved liquidity position, attributed to positive cash flows from operating activities of $3,701k for FY25 (FY24: $2,677k).
• Debt: Repayment of debt amounted to $790k in FY25 (FY24: $999k)