Third Age Health Reports Strong FY24 Growth and Expansion

Highlights

• Significant Revenue Growth: Core ARC revenue grew by 39%; general practice revenue increased by 30%.
• Clinical Team Expansion: Increased clinicians by 28%, now making up 74% of the overall team.
• Improved Financial Performance: Revenue up by 35%, underlying NPATA surged by 148%, and positive cash flows from operations reached NZ$2,677,000.

FY24 Business Summary

Third Age Health (NZX: TAH) has significantly expanded its national footprint and market share during the fiscal year 2024. The company increased the number of Aged Residential Care (ARC) patients it provides care to by 18%, now supporting 12.4% of New Zealand’s ARC population across 67 facilities. Additionally, Third Age Health's combined enrolled patient population across both ARC and general practice grew by 4% to 24,969.

National Footprint and Clinical Team Expansion

• Third Age Health’s core ARC revenue grew by 39%, and its general practice revenue increased by 30%.
• The clinical team expanded by 28%, with 87 clinicians now making up 74% of the overall team.
• Of the total enrolled patients, 8,393 are aged 65 and above.

FY24 Financial Summary

• Revenue increased by 35% to NZ$15,151,000 from FY23.
• Underlying NPATA surged by 148% to NZ$1,708,000.
• Cash and cash equivalents rose to NZ$1,695,000, and positive cash flows from operating activities reached NZ$2,677,000.
• Debt reduction was a focus, with NZ$999,000 paid down during FY24.

Chairman & CEO Report

The full-year results for FY24 reflect significant progress in creating customer value in primary medical care within ARC settings and community general practices. Process improvements and system enhancements have stabilized operations, leading to sustainable growth. Recruitment efforts have successfully attracted more clinicians, meeting growing demand and strengthening service delivery.

Key Initiatives and Improvements

• Completion of the proprietary digital clinical platform, set for pilot release in Q1 FY25.
• Transformation of the practice at Selwyn Village, incorporating the KARE program to optimize patient care.
• Expansion of the Nurse Practitioner development program with a new training base.
• Introduction of the Third Age Health Way of Working (TAH WOW), resulting in process improvements and waste reduction.

Financial Performance and Future Outlook

The ARC-related business experienced strong organic growth, with revenue increasing by 39%. Community General Practices also saw revenue growth of 30%. Pricing adjustments across both ARC and General Practices helped align with rising resourcing costs.

Looking ahead, Third Age Health is optimistic about continued growth, supported by investments in processes, systems, and digital advancements. The company expects organic revenue and underlying profit in FY25 to surpass FY24’s figures, albeit at a more moderate pace. A final fully imputed dividend per share of 2.80 cents has been announced, adhering to the 75% payout ratio dividend policy.

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