Metlifecare Ltd said in an investor update on Wednesday it intends to double delivery of new retirement village units & beds in the June 2017 financial year and is targeting a sustained programme of 300-plus beds/year from July 2018.
Chief executive Glen Sowry said in the 5 months since he joined the company he’d worked with the executive team & board to review & redefine its strategic priorities.
He said Metlifecare had a leading position in 2 of the country’s highest value-growth regions, Auckland & the Bay of Plenty: “Our focus is on targeted growth, and we have taken time to carefully consider where our offering currently fits in the market, as well as where it should fit in future.”
Mr Sowry said the company would focus on 3 key areas – acceleration of its development programme, capturing maximum value from its existing portfolio and competitive differentiation: “Our development programme has been stress-tested & revised, and we now have an accelerated programme that we are confident of delivering.”
The company is forecasting to more than double the delivery of new units & care beds to 229 in the June 2017 year, steadily increasing to a minimum of 300 new units or care beds/year by the year starting July 2018.
Mr Sowry said Metlifecare had improved its land acquisition strategy with enhanced mapping & clear investment criteria: “A number of opportunities are currently being explored, and we expect to complete at least one land purchase in the 2017 financial year to add to the existing pipeline of development projects.”
He said improving development margin was also a priority: “The company has invested in strengthening the development team in the past year, resulting in significantly increased capacity & capability for project planning, design, procurement & management. Strengthened systems, processes & supplier partnerships are likely to drive improved cost, quality & timeframes, and the company is consequently expecting its overall development margin to meet or exceed the minimum level of 15% in the 2017 financial year.”
Along with renewed emphasis on development, Mr Sowry said Metlifecare would continue to focus on optimising returns from its existing portfolio, and it wanted to significantly raise the bar on the food & dining offering to drive increased resident satisfaction & brand positioning: “We are working with leaders in the hospitality sector to create a new level of dining & hospitality experience.”
Metlifecare operates 24 retirement villages.
Attribution: Company release.