Estia Health returned to profit in its latest full year result but the aged care operator missed its guidance.
A short time ago, its shares were down almost 18% to $4.04.
The statutory profit was $27.64 million, up from a loss of $22.5 million in 2015, on a 56.8% rise in revenue to $446.51 million.
Underlying net profit after tax was up 16% to $51.8 million but this was 7.5% below guidance given in February.
“Clearly we’re disappointed not to have reached our targets, but 31% growth in earnings for the full year — with a noticeable step change in performance during the second half — demonstrates the successful delivery of our growth strategy,” says CEO Paul Gregersen.
The company declared a fully franked final dividend of 12.8 cents a share, taking the full year payout to 25.6 cents.
Gregersen says the company sees underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) for 2017 at least 13% ahead of 2016.
“Our underlying business performance remains strong, underpinned by compelling industry fundamentals. Our absolute focus is on providing the highest quality aged care for residents and their families,” he says.