Restructuring at aged care provider Estia Health is starting to have an impact.
The company, with 68 aged care facilities in Australia, posted a 17% jump in profit to $19.8 million for the six month to December. Revenue was up 34% to $263.11 million.
A short time ago, its shares were 10.8% higher at $3.16.
The net profit was 85% higher than the previous six month, the second half of 2016.
CEO Norah Barlow says the result shows the signs of improvement as initiatives from a wide-ranging strategic review start to gain traction.
“We have undertaken a range of key initiatives, including a new leadership team and management structure, which puts us back on track and provides the company with a fresh platform to deliver sustainable earnings growth,” says Barlow.
“Our business strategy for the remainder of the year will be to continue optimising the performance of our existing portfolio of assets; undertaking significant refurbishment projects while continuing development projects at the appropriate time.”