Shares in the aged care provider sank almost 7% after the company announced it now expected its EBITDA to grow 7% to 10% on last year’s result of $29.1M. Previously the provider had forecast growth of 11%.
Its half-yearly profits also fell 9.9% to $14.6M.
Japara’s chief Andrew Sudholz has blamed the fall on an increase in growth-related depreciation and financing costs and a one-off tax benefit received in the prior period. Occupancy was also cited as an issue, dipping to 94.4%.
Mr Sudholz says the company now plans to boost its earnings by focusing on its greenfield developments, with land secured for 10 of its 11 projects and providing over 1,100 places by 2020.