Third Age Health Services (NZX: TAH) Releases Unaudited Half Year Results Yielding Significant Growth

On 25 October 2024, Third Age Health (TAH), New Zealand’s premier provider of quality healthcare services for older people, released its unaudited half year results. The financial statements highlight steady growth and a positive lift across multiple measures.

TAH’s Net Profit After Tax (NPAT) has increased by 115% to $1,154k, up from $537k in the same period last year, and Underlying NPATA [1] grew by 96% year on year, reaching $1,361k. Overall gross profit margin improved to 51.6% from 47.6% in the same period last year.

Chairman John Fernandes and CEO Tony Wai commented on the interim results in their joint report. Mr Fernandes says, “At the outset of this year, we set out with ambitious plans, focusing on delighting customers, expanding our care services and scaling operations.”

Mr Wai continued by saying “We’re pleased to report that our efforts have translated into significant growth across key areas of our business in the first half of FY25.”

Part of this growth is due to the acquirement of Hub Aged Care in Wellington in April which contributed to their expansion of elder care services in the Lower North Island. The total number of aged residential care facilities TAH services is now 87, providing care to 5,278 residents, with a combined number 25,810 patients across aged residential care and community general practices.

Mr Wai attributes this growth to the deep relationship with current and potential aged residential care customers and says they have been integral to supporting the growth of our care facilities and enrolled patients.

While pleased with these early results, he says they remain cautiously optimistic that performance in the second half of this financial year will be ahead of the performance delivered during the first half. The current landscape is as challenging as ever, and while demand for our services continues to grow, so does competition.

Mr Fernandes concludes their joint statement by saying that “While our core elder care services business is performing well, TAH continues to make investments in improving the quality and reach of services they provide. This includes investments in digitisation, process improvements and additional resource.”

Despite the evolving environment and ongoing challenges, Third Age Health has demonstrated adaptability and implementing effective strategies to position itself for continued growth.

[1] Underlying NPATA is adjusted for non-cash amortisation charges arising as a result of purchase accounting rules

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