Regis Healthcare (ASX: $REG) Half-Year Financial Report 31 December 2023

Regis Healthcare Limited (ASX: $REG) presents its half-year financial report for the period ended 31 December 2023. The Group owned and operated 68 residential aged care homes with approximately 7,600 available operational places, including CPSM Pty Ltd with five Queensland based residential aged care homes acquired on 1 December 2023. The Group's focus on improved operational, clinical, and financial performance has led to an increase in occupancy rates to an average of 93.6% for the half-year ended 31 December 2023, up from 91.1% in the previous corresponding period. Government revenue also saw a significant increase to an average of $288.50 per resident per day for the same period, mainly due to the transition from ACFI to AN-ACC, higher AN-ACC funding, indexation, and higher acuity of residents.

Executive Commentary on Financial Performance

Regis Healthcare aims to provide quality care to meet the growing needs of Australia's elderly population. The Group's focus on improved operational, clinical, and financial performance has resulted in a notable increase in occupancy rates and government revenue. The acquisition of CPSM Pty Ltd has contributed to the Group's revenue from services and profit before tax. The ongoing remediation payment process for employee entitlement underpayments reflects the Group's commitment to addressing any potential underpayments. The Group's strong balance sheet and substantial debt facility support the pursuit of further strategic acquisitions and greenfield developments to drive shareholder value.

Outlook and Corporate Strategy

Regis Healthcare continues to adapt to a rapidly changing regulatory environment and expects to benefit from the recent CPSM acquisition and additional Government funding in the second half of the 2024 financial year. The Group's strong balance sheet and substantial debt facility, together with disciplined management, support the active pursuit of further material strategic acquisitions and greenfield developments to drive shareholder value. The intended market deregulation of operational places presents new opportunities for the Group to invest in geographic areas previously not open to the Group, potentially increasing competition and further developing the sector.