CEO Ian Thorley has called the current operating conditions “the most difficult period for the sector I have seen” as the listed provider posted a decline in its NPAT of 32.1% on the same period in FY19 and a 12.6% decline in the EBITA on its mature homes to $40.9 million.
Overall, its operating cash flow came in at $35.7 million – which represents around 87% EBITDA to cash conversion.
Estia also recorded $22.2 million in RAD inflows and a 93.7% occupancy rate for the period – which Mr Thorley labelled a “solid result”.
“Our disciplined management of costs has allowed us to sustain our staffing investment in our homes to ensure we continue to deliver the services and care that residents and families expect, whilst mitigating the impact to shareholders during the current period of margin compression,” Mr Thorley said.
Estia has over 7,500 employees across its 69 homes with staffing costs rising 3.7% during the period – 5.5% higher than the same period in FY19.
The CEO says he is hopeful that changes will see conditions improve.
“We hope that the next stage of reform and change, will include changes to the funding and financing structure to create a financially sustainable sector,” he added.
Estia declared an interim dividend of 5.4 cents per share, fully franked.
