The ASX-listed provider has released a trading update, revealing that the group’s ambitious growth plans are coming to fruition and the impacts of COVID-19, in terms of cost, frequency and severity of cases, are declining.
Occupancy is also improving – as of 30 April 2023 it was 93.0%, up from 91.7% in the first quarter of the financial year – and back to pre-pandemic levels. Estia Health CEO Sean Bilton has previously told The SOURCE that a 1% increase in occupancy translates to about an $8 million boost in revenue – the improvement this financial year could add $10.4 million to the group’s revenue from our back of envelope calculations.
Estia Health’s acquisition of the 120-bed Mount Clear aged care home in Ballarat, Victoria, is now complete. The provider, which now operates 73 aged care homes in QLD, NSW, VIC and SA, paid $15.9 million for the home and took on Refundable Accommodation Deposits (RADs) to the tune of $12.9 million.
CEO Sean Bilton said, “When added to our recent acquisition of four Premier Health Care homes and the planned completion towards the end of this calendar year of our newly built homes in St Ives and Aberglasslyn, both in NSW, we will have added 789 places, or 13%, to the Group’s capacity since June 2022.”
COVID-19 is also having a declining effect on the group. “The impact of COVID-19 response and prevention has continued to decline in Q3FY23 in line with lower community impacts in terms of duration, frequency and severity of infections,” the release notes.
The aged care giant’s third-quarter COVID-19-related costs were less than half that of the first quarter (see main image), and the update notes that the Government has now committed to repaying 60% of the total COVID-19 costs claimed for (see table below).
COVID-19 costs grants
Bain’s inspection of Estia Health’s books is still underway – whether they will increase their bid remains to be seen.
