- Aged care provider Estia’s profits stagnated during the FY19, only increasing 0.3 per cent
- The company said the fallout from the Royal Commission into Aged Care Qaulity put a strain on the sector’s performance
- Estia’s share price is up 8.37 per cent at today’s market close, currently sitting at $2.85 per share
Aged care provider Estia Health’s share price climbed over 8 per cent today, following the release of its financial year earnings.
Profits after tax are up a fractional 0.3 per cent, reaching $41.3 million. Earnings before interest, tax, depreciation and amortisation saw a 4.3 per cent increase, coming in at $94 million.
Additionally, on the year previous, revenue spiked 7.1 per cent, bringing it to $586 million.
Estia’s CEO Ian Thorley said: “There is no doubt that this has been one of the most challenging periods for the aged care sector.”
“Continuing to lift the quality of care and amenity for residents, while maintaining our financial results, reflects the hard work and dedication of our 7500 team members, our resident-centred operating model and our disciplined approach to managing costs and capital,” Ian added.
The company explained the Royal Commission into Aged Care Quality has added to financial strain. However, it welcomes the introduction of new standards as a result which came into effect on 1 July 2019.
“We are well prepared for the introduction of new quality standards, with additional investment in quality management and resident care systems including staff education, technology development, customer engagement and service,” Ian said.
Estia has over 69 homes catering 6,180 places for over 8000 older Australian’s.
Shareholders will receive a fully franked final dividend of $0.078, bringing the total for the fiscal year to $0.158 per share.
Estia’s share price is up 8.37 per cent at today’s market close, currently sitting at $2.85 per share.