Regis, one of Australia’s largest aged care providers, has reported a net loss after tax of $38.8 million for the year to 30 June 2022, down from a net profit after tax of $19.9 million the previous year.
Revenue was $725.3 million, up 3.4% from the corresponding period.
The company spent $27.8 million on Covid-19 outbreaks before recouping costs through government grants.
Average occupancy of the group’s homes was 89.8%, up from 88.9% the previous year. Occupancy at 30 June 2022 was 91.0%.
Staff expenses rose 5.6% to $550.4 million, with staff shortages leading to significant spending on overtime and agency contract staff. The staff expense per occupied bed rose 6.2% to $214.4 million, due mainly to wage increases as well as the increased use of agency staff and overtime. “Severe staffing shortages” were caused by COVID-19 and amplified by border closures.
Capital expenditure for the year was $48.6 million, including the purchase of land at Belrose, Sydney, the site of a future residential aged care home.
The company noted that COPE indexation of 1.1% from 1 July 2021 was “vastly inadequate” to offset the impact of the Superannuation Guarantee Scheme’s increase of 0.5%, wage increases, and inflation.
“Continued operating losses, inadequate levels of funding and uncertainty about the transition from ACFI to the new AN-ACC funding model, together with care minute requirements, has resulted in lower levels of investment,” the company said in its financial report.
The company is calling on the government to fund the Fair Work Commission’s Work Value Case for aged care workers and to deregulate the residential Basic Daily Fee to allow for more competition, and allow providers to deliver improved services.
Regis is also calling for the introduction of a co-contribution from residents to pay for a higher portion of the care and services they receive.
The company’s dividend was decreased to 2.32 cents per share. The company’s shares were up slightly on the announcement, trading just above $2.
