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 announcement, released 7 February 2025:

Q3 FY25 Business Highlights - Unaudited Financial Performance

• Services provided to 88 Aged Residential Care (“ARC”) facilities at the end of Q3 up 24 or 37.5% compared to PCP2.
• The number of ARC residents (patients) we provide care to has increased by 27.2% in Q3 (to 5,587 residents) compared to PCP.
• The enrolled patient population across both ARC and General Practice at the end of Q3 increased by 4.5% to 25,991 when compared to PCP.
• Q3 FY25 vs Q2 FY25 – revenue down 1.1%: This decline primarily reflects the temporary closure of clinics over the Christmas period. Additionally, revenue in Q2 typically benefits from a seasonal uplift driven by winter illnesses and immunisations, which does not carry through into Q3.
• During Q3 FY25, a total of 48,608 shares were repurchased at an average price of $2.2384 per share. Since the commencement of the current on-market buyback on 23 August 2024, a total of 49,658 shares have been repurchased at an average price of $2.2357 per share as of 31 December 2024.

Q3 FY25 Financial Highlights (Unaudited)

• Group revenue up 27.4% over PCP to $4,846k for the quarter and down 1.1% over Q2 FY25 (Q3 FY24: $3,804k, Q2 FY25: $4,902k)
• Revenue from ARC core business up 41.9% over PCP to $3,028k but down 1.4% over Q2 FY25 (Q3 FY24: $2,134k, Q2 FY25: $3,071k).
• Underlying NPBTA3 up 53.8% over PCP at $1,075k and 3.7% over Q2 FY25 (Q3 FY24: $699k, Q2 FY25: $1,037k)
• Underlying NPATA up 52.8% over PCP to $802k and 8.1% over Q2 FY25 (Q3 FY24: $525k, Q2 FY25: $742k)
• Statutory NPAT up 57.2% over PCP to $701k and 10.9% over Q2 FY25 (Q3 FY24: $446k, Q2 FY25: $632k)