Promisia Healthcare Posts 29% Revenue Growth and Launches Dividend Policy

Strong Earnings and Occupancy Drive Portfolio Value

Promisia Healthcare Limited (NZX:PHL) delivered a standout financial performance for the year ended 31 March 2026, posting a 29% increase in operating revenue to $40.1 million and an 89% surge in net profit after tax to $12.9 million. This growth was underpinned by a 7-percentage point lift in group care occupancy to 94%, a full-year contribution from its Cromwell operations, and a rise in deferred management fees.

The company’s aggregate market valuation rose 17.1% to $107.2 million, with every facility in its portfolio increasing in value by at least 10%, reflecting broad-based operational improvements rather than isolated asset gains. This valuation uplift aligns with stronger cash flows and improved site performance, factors that have underpinned the company’s steady value creation over recent years.

Promisia’s net tangible assets per share climbed 38% to $1.09, more than doubling since March 2023, highlighting sustained shareholder value growth. The loan-to-value ratio also improved markedly, falling from 42.9% to 31.8%, supported by a comprehensive debt restructure that consolidated BNZ lending into a single group-level facility with a lower weighted average interest rate of 5.7%.

Operational Improvements Fuel Earnings Growth

Operationally, the company credits a strengthened leadership team for driving performance across its portfolio. Chief Operating Officer Graeme Dodd, who joined in May 2025, alongside CFO Francisco Rodriguez Ferrere, implemented clearer accountability frameworks and tighter operational discipline. These efforts lifted occupancy at key sites such as Nelson Street, which completed its conversion to dementia care and hospital-level services, reaching near full capacity.

Ranfurly Manor’s care suite sales programme concluded during the year, boosting deferred management fees and cash flow, while Aldwins House achieved its highest-ever occupancy amid cultural and care quality improvements. The integration of Golden View and Ripponburn into the group has also delivered operational scale and alignment benefits.

These operational advances are complemented by supplier consolidation, standardised systems, roster optimisation, and consistent processes, all contributing to a more scalable platform. Care quality metrics improved, driven by enhanced clinical oversight and better data utilisation.

Promisia’s focus on operational discipline and growth is evident in its financial discipline, with operating expenses rising 22% to $30.2 million but remaining well below revenue growth, aided by efficient rostering and group-wide procurement initiatives.

Dividend Policy Tied to Cash Flow Signals Confidence

For the first time, Promisia has introduced a formal dividend policy for FY27, linking payouts to Operating Free Cash Flow (OFCF) rather than accounting profit. Dividends will be assessed at 20% to 40% of OFCF, calculated after cash interest, debt repayments, tax, and maintenance capital expenditure, and are intended to be fully imputed. This cash-based approach aims to provide shareholders with transparency on distributable cash while preserving balance sheet strength and reinvestment capacity.

Operating Free Cash Flow was slightly negative in FY26 at minus $169,000, but the company expects a material improvement in FY27, supporting dividend payments alongside ongoing reinvestment.

Promisia’s FY27 guidance projects underlying EBITDAF growth of at least 20% to $8.0 million and group care occupancy rising to at least 95%. The company is also actively pursuing earnings-accretive acquisitions consistent with its strategy of expanding integrated care and village assets aligned with its operational model.

Capital Management and Growth Strategy

The company continues to prioritise four core capital areas: advancing full ownership of Golden View Village through interest-free loan repayments, maintaining a strong and flexible balance sheet with over $3 million in undrawn facilities, targeted value-add capital expenditure such as solar panel installations at Ranfurly Manor and Nelson Street, and pursuing acquisitions that enhance scale and operational alignment.

This disciplined capital allocation framework supports Promisia’s ambition to be the provider of choice in its communities, delivering quality care while generating long-term shareholder value.

These results build on recent operational gains including a 17.1% portfolio valuation rise and a lift in occupancy to 94%, as detailed in earlier coverage of Promisia’s progress in the sector. The company’s trajectory suggests a continued focus on execution and growth in a competitive aged care market.