Ryman sales climb despite housing downturn

Thursday, 23 November 2017

Ryman staff have received pay rises and new uniforms designed by Annah Stretton, displayed at a recent meeting.

Christchurch-based Ryman Healthcare says it is defying the market with a rise in sales of units by 11 per cent per cent, compared with a 20 per cent fall in house sales across Auckland.

Chief executive Gordon MacLeod said this was because people primarily moved into retirement villages for lifestyle and health reasons.

A big worry for Ryman currently was the new Labour Government's intention to tighten immigration rules, because of the large number of Ryman care workers from overseas and growing demand for more.

Ryman was lobbying the Government to support family members of staff who were born outside New Zealand, MacLeod said.

* Ryman Healthcare responds to staff pay gripes and increases directors fees**

Staff had been given further pay increases and improved entitlements, he said. A Government-brokered deal provided for subsidised payments to lift care worker pay.

Ryman posted an 11 per cent higher profit of $85 million from operations in the half year ending September 2017 from total revenue of $165m..

The inclusion of unrealised property revaluations lifted the final profit after tax to $202m.

Occupancy in Ryman care centres was running at 97 per cent, ahead of the industry average of 87 per cent.

MacLeod announced planning for a new $95m retirement village in Mount Martha in Victoria, Australia to add to its portfolio of 31 villages worth more than $5 billion.

The company is increasingly focused on the Australian market where is has a village under construction in Melbourne and five at the design and planning stages.

In New Zealand Ryman has villages being built at Greenlane, Devonport and Lynfield in Auckland, and villages are at planning stages in Hobsonville and Lincoln Rd in Auckland, Hamilton, Newtown in Wellington and Park Tce in Christchurch.

The newly-announced Mount Martha village will offer several living options including aged care and specialist dementia care.

Ryman villages include independent living units, and assisted living and aged care on the same sites.

Sales and community relations manager Debbie McClure said she would love to hear from community groups interested in the Mount Martha project and from any local residents who had naming suggestions.

Shareholders will receive an increased interim dividend of 9.5 cents a share.

The company said full year underlying profit (before property revaluations) was expected to be in the range of $195m to $210m.