Retirement village developer and operator Summerset Group Holdings surprised the market with a profit well ahead of its prospectus forecast.
The group, which is to build a village in Dunedin, reported an underlying profit for the year ended December of $8.1 million, up 35% on the prospectus.
Profit before tax was up 2.3% on the prospectus forecast. Sales of occupation rights were up 25% on 2010.
The profit was the first to be released since the company listed on the NZX in November.
Craigs Investment Partners broker Chris Timms said the main thing for investors to focus on was that indicators right across the spectrum improved for Summerset.
Profit was up, debt was down, building was on track and the overall result was a good one.
"This will allow investors to get comfortable. The shares have languished since listing."
The shares listed at $1.40 but had traded as low as $1.29 and as high as $1.46, he said.
The latest result would give the market an indication that the company's management was on the right track, Mr Timms said.
Summerset had indicated there was a growing demand for aged care facilities, he said.
Summerset managing director Norah Barlow attributed the profit to a strong second-half performance driven by an early delivery of new developments and higher sales than predicted.
"Our new developments performed very well and existing villages experienced uplift in demand driven by a number of factors, including an increased brand profile and effective marketing initiatives."
Summerset was on target to deliver 155 units in 2012.
