Recently-listed agedcare provider Estia Health says it is on track to meet its prospectus forecasts as more people enter its nursing homes and the number of high-care residents increases.
Estia says an increase in high-care subsidies has helped boost the proportion of high-care residents.
Its unaudited, pro forma results for the first half of the 2014/15 financial year show earnings of $28.5 million and revenue of $137.2 million.
Occupancy levels increased to 93.4 per cent, from 89.3 per cent in the same period the previous year.
More than 91 per cent of residents now receive high-care subsidies.
"The factor that will continue to drive out-performance and strong sustainable earnings is a high-quality portfolio of single rooms," Estia chief executive Paul Gregersen said in the statement on Wednesday.
"First and foremost, people want the privacy and dignity of a single room and this is the primary motivating factor that has seen occupancy increase from 89.3 per cent to 93.4 per cent over the last six months as we continue ramping up."
Estia has also cut employee costs as a proportion of revenue to 58.4 per cent, which is lower than its forecast of 59.1 per cent.
The company has forecast pro forma earnings for the full year of $60.6 million and revenue of $296.4 million.
It expects to release its interim financial results on February 19.
Shares in Estia were 31 cents, or 6.92 per cent, higher at $4.79 at 1142 AEDT.
Share
