Aged care provider Regis Healthcare has increased its full year earnings guidance after reporting a first-half net profit in line with its full-year prospectus forecast.
Regis, which listed on the Australian Securities Exchange in October, made a net profit of $15.1 million for the six months to December 31, down 10 per cent from $16.8 million a year ago.
Regis said the fall in profit reflected the impact of costs associated with its listing and the company's prior financial arrangements.
The company's revenue lifted by 9.6 per cent, with an average occupancy rate of 94.2 per cent, which was 0.6 per cent behind the prospectus target.
"Regis delivered a strong performance in the first half of the financial year," Regis managing director Ross Johnston said on Friday.
"And we now anticipate EBITDA (earnings before interest, tax, depreciation and amortisation) and NPAT (net profit after tax) for the full year exceeding forecasts presented in the company's prospectus by between five and 10 per cent."
In its prospectus in September, Regis had forecast a net profit of $33.2 million for 2014/15 and EBITDA of $84.4 million.
Shares in Regis rose by 58 cents, or 12.75 per cent, to $5.13 on Friday.
Regis said its half year result was underpinned by strong revenue and prudent cost management.
The number of places available grew to 4,855 after the completion of the acquisition of the Regis Tiwi Gardens aged care home in the Northern Territory, in line with the prospectus.
Mr Johnston said Regis was focused on developing new facilities and refurbishing existing sites, and making acquisitions.
"Regis operates in a highly fragmented industry which gives rise to a range of opportunities to grow by acquisition," he said.
"In addition, long-term demographic change in Australia supports continued investment in the residential aged care sector."
Industry forecasts suggested 260,000 places would be needed by 2022, representing annual growth of around 3.5 per cent.
In January 2015, Regis announced the acquisition of the Redlynch Glenmead Village aged care home in Cairns, which has 194 places.
REGIS PROFIT IN LINE WITH PROSPECTUS FORECAST
* Interim net profit of $15.1m, down 10pct from $16.8m in 2013/14
* Revenue of $219.2m, up 9.6pct from $200.1m
* No dividend, in accordance with prospectus
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