Promisia Healthcare Limited Analysis

Overview

Promisia Healthcare Ltd is a public company listed on the NZX. It was formed in August 1983 as Genestock NZ Ltd. and has remained as a listed company undertaking a number of diverse activities over the last 30 years. The company came under the control of the current major shareholders and directors in 2003/4 and for some years remained a listed shell company, i.e. the company remained listed on the NZX but it did not have any substantive trading activity. For a period of time the company researched and marketed a dietary supplement called Arthrem and then in October 2020 moved in to the current aged residential care business.

The business's principal activity is the provision of rest home and hospital level care. In addition, care is offered for dementia, respite, palliative and for younger people with lifelong disabilities (YPD).

Promisia Healthcare Ltd currently owns and operates four aged care facilities comprising of 404 care beds. In addition, Promisia operates two retirement villages comprising of sixteen villas. There are also a further 28 villas and 10 care suites in an advanced stage of construction.

Performance

The following information was extracted from Promisia Healthcare Limited's Full Year results, released 28 May 2026:

FULL YEAR RESULTS TO MARCH 2026

Promisia delivers strong FY26 result and introduces dividend policy

Promisia Healthcare Limited (NZX: PHL) has released its unaudited preliminary results for the year ended 31 March 2026, reporting strong performance across its key financial and operational measures.

FY26 Results Summary:

• Operating revenue increased 29% to $40.1 million

• Underlying EBITDAF1 increased 58% to $6.6 million

• Net profit after tax increased 89% to $12.9 million

• Net operating cash flows increased 87% to $6.4 million

• Aggregate market valuation increased 17.1% to $107.2 million

• Net tangible assets (NTA) per share increased 38% to $1.09

• Loan-to-value ratio reduced to 31.8% from 42.9%

• Group care occupancy increased from 87% to 94%

Promisia Chair Rhonda Sherriff said: “FY26 has been a strong year for Promisia. Occupancy, earnings, cash flow, balance sheet strength and care quality have all materially improved over the year.

“That was not driven by one facility or one initiative. The improvement reflects the delivery of the plan we set at the start of the year: focus on residents and care quality, lift occupancy, strengthen the systems and processes across our facilities, and build the platform for growth.

“The result gives the Board confidence that Promisia is entering FY27 with momentum, further earnings growth ahead and, for the first time, a dividend policy linked to Operating Free Cash Flow.”

Financial Highlights:

FY26 delivered a clear step change in financial performance.

Operating revenue increased 29% to $40.1 million, supported by higher occupancy, the first full-year contribution from the Cromwell operations, and growth in deferred management fees. Underlying EBITDAF increased 58% to $6.6 million, up from $4.2 million in FY25.

Net profit after tax increased 89% to $12.9 million, supported by the stronger operating result and fair value gains from the revaluation of Promisia’s care facilities and retirement villages. The aggregate market valuation increased by $15.7 million to $107.2 million at 31 March 2026, with each site increasing in value by at least 10%. This reflects broad-based improvement across the portfolio, rather than a single asset or one-off valuation movement.

NTA per share increased from $0.79 to $1.09, an increase of 38%. This continues the value-creation trend over recent years, with NTA per share more than doubling from $0.46 at March 2023.