Eureka Group, which has seen its share price rise 53.45% in the past five years, has posted a net profit of $4.03 million for the Half Year to 31 December.
The Gold Coast-based company, which has bounced back strongly from its falls in profits in 2017 and 2018, saw its revenue increase from $9.311 million 12 months ago to $10,293 million.
Eureka bought the 106-home Gainsborough Downs Home Village in Brassall, a suburb of Ipswich, and a 2.09ha greenfield development site in Kingaroy and completed an expansion of its village at Wynnum. Its purchases of management and letting rights for six villages operated by Oxford Crest and the conversion of Port Dennison Motor Inn in Bowen will be completed in FY22.
It now has 2,261 units (3% increase) under management and said government Pensions account for around 95% of revenue. It has posted an EBITDA forecast for FY22 of between $10.9 million and $11.1 million.
Eureka Group Executive Chairman Murray Boyte (pictured) said it would continue to expand by buying additional villages and develop the villages at Brassall and Kingaroy.
“The market in which we operate has favourable long term industry trends – an ageing population and a shift from home ownership to long term rental accommodation in Australia,” said Eureka in its HY presentation.
Eureka Group has fallen 5.63% on the ASX this year (as of yesterday afternoon).
