Third Age Health Services (TAH) H1 2025 earnings summary

Executive summary

• Net Profit After Tax (NPAT) rose 115% year-over-year to $1,154k for the six months ended 30 September 2024, with underlying NPATA up 96% to $1,361k and 34% sequentially from 2H24.

• Patient base expanded to 25,810, up 132% year-over-year, and the number of aged residential care facilities serviced increased to 87, a 23-facility increase over the prior comparable period.

• Acquisition of Hub Aged Care in April 2024 contributed to growth, adding 13 facilities and 733 residents in the Lower North Island.

• Community general practices showed significant operational improvement, though some underperformance remains.

Financial highlights

• Revenue increased to $9,413k, up 28% year-over-year and 21% sequentially from 2H24.

• EBITDA rose to $2,253k from $1,300k year-over-year.

• Basic and diluted EPS doubled to 10.25 cents from 5.45 cents year-over-year.

• Net cash from operating activities was $1,533k, up from $794k in the prior year.

• Interim dividends declared for the first half totaled 6.83 cps, up 72% year-over-year.

Outlook and guidance

• Management is cautiously optimistic that second-half performance will exceed the first half.

• Capital allocation will continue to prioritize customer-focused investments, opportunistic debt repayment, and share buybacks.

• Second quarter fully imputed dividend per share of 3.55 cents declared, totaling 6.83 cents for 1H25.