Successful Ryman founder steps down after 34 years
Friday, 18 May 2018
Ryman Healthcare has reported another healthy profit, purchase of new sites, and is farewelling one of its founders, director Kevin Hickman.
Hickman's oft-quoted philosophy was that Ryman's care had to be 'good enough for Mum'.
Ryman has also paid dividends for the 68-year-old former detective and athletics coach. Hickman's personal wealth is estimated at about $400 million, partly based on his shareholding in the company.
Hickman and John Ryder, based in Christchurch, founded Ryman in 1984 with $10,000 each, and by 1999 listed it on the stock exchange.
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Now it is the largest retirement village operator with 32 villages in New Zealand and Australia, home for 10,600 residents, employing 4700 staff.
Hickman and Ryder ran the company until the mid-2000s but have both built other property empires, with Ryder developing commercial property and retirement villages, and Hickman owning two-thirds of a business park near Christchurch airport.
He and his wife Joanna are also well known for their ownership of Valachi Downs Stud near Matamata, and its famous race mare Silent Achiever.
In 2016 he was made an Officer of the Order of Merit, recognising his services to charities.
He said he left the company in good heart after 34 years, although he and his family intended to remain long term shareholders in the company.
'I'd like to thank the many thousands of residents and their families as well as loyal shareholders who have put their trust in us, along with the great team at Ryman who have made the company a success. I've been lucky enough to work with many great people.'
Meanwhile, Ryman has announced the purchase of an eighth site in Victoria, Australia, and expansion in Havelock North.
Ryman shareholders will receive an increased final dividend of 10.9 cents per share, taking the total dividend for the year to 20.4 cents per share.
Chairman David Kerr said the balance sheet showed total assets of $5.8 billion, with 16 villages in the pipeline.
Ryman ended the year with less than 1 per cent of the portfolio available for re-sale and occupancy in care centres was 97 per cent.
Re-sale at existing villages grew by 15 per cent while sales in the wider real estate market were down by 14 per cent.
Chief executive Gordon MacLeod said the death of a construction worker on site in Auckland on January 9 had been devastating.
New Ryman villages in Hamilton and Coburg in Melbourne had received planning consent, and consenting was advanced for new sites at Burwood East in Melbourne and Geelong in Victoria.
In Auckland, Ryman's Logan Campbell village had welcomed its first residents, and work was progressing on new villages at Devonport and Lynfield.
The collective value of Ryman shares at current prices was more than $5 billion, setting it among the largest market capitalisations on the NZX. Over the years it has paid out dividends of $690m.