Third Age Health Services Limited Analysis

Overview

Third Age Health is a provider of primary care services to the aged residential care ("ARC") sector and, through Hawkes Bay Wellness Centre, the general population. Third Age Health provides these services by way of both physical attendances and offsite service provision.

Third Age Health primarily generates revenue through its services under contracts for service with ARC providers, who pay fees to Third Age Health according to those contracts. Third Age Health also generates revenue when we enrol a patient into our practice, or when we provide services through our primary care medical centre. In order to generate revenue, Third Age Health must have two things: patients who want us to provide them services, and suitably qualified healthcare personnel willing to provide services to these patients.

Performance

The following information was extracted from Third Age Health Services Limited's trading update, released 26 July 2024:

Financial Performance

• Group revenue up 27.9% over Q1 FY24 to $4,511k and 12.6% over Q4 FY24 (Q1 FY24: $3,526k, Q4 FY24: $4,006).
• Revenue from ARC core business excluding Hub Aged Care up 31.4% over Q1 FY24 to $2,304k and 3.1% under Q4 FY24 (Q1 FY24:

$1,753k, Q4 FY24: $2,377k).

• Underlying NPBTA4 up 116.1% over Q1 FY24 at $821k and 27.1% over Q4 FY24 (Q1 FY24: $380k, Q4 FY24: $646k). • Underlying NPATA

(assuming tax at 28% for Q1) up 109.0% over Q1 FY24 to $619k and 26.5% over Q4 FY24 (Q1 FY24: $296k, Q4 FY24: $489k).

• Statutory NPAT (assuming tax at 28% for Q1) up 140.1% over Q1 FY24 to $521k and 30.1% over Q4 FY24 (Q1 FY24: $217k, Q4 FY24:

$400K).

• Cash/Debt: Cash and cash equivalents decreased to $1,521k at the end of Q1 FY25 (Q4 FY24: $1,695k) – a reduction of $174k. The

loan balance increased to $1,926k at the end of the quarter (Q4 FY24: $1,342k) with an increase of $584k owing to the purchase of

Hub Aged Care. A $325k loan repayment has been made after the Q1 FY25 reporting period.