Japara Healthcare Limited (ASX:JHC) CEO and Managing Director, Andrew Sudholz discusses the company’s focus and outlook at the ASX Spotlight Series 2016, New York Japara Healthcare Limited
(ASX:JHC) is a public listed company in Australia. We have 43 facilities throughout Australia. We employ around 4,900 people and we provide care services to over 4,000 residents.
It’s very significant actually; at the moment there is 190,000 people in the residential care market in Australia. And based on the aging demographic, we need to provide another 82,000 bed places in the next 10 years or so. And that’s a big challenge for the organisation. The workforce is a challenge as well, but that’s the growth we have in the businesses available to us.
Probably in the development side, if we’re providing 82,000 new beds into the market, then someone’s got to build those and provide the care services. So the present time, we have about a three per cent market share. We would want to continue to maintain that. So in the development sense, we would be needing to build something like 2,500 beds over the next 10 years. That is a significant capital investment. Of the 82,000 beds that are being built that’s a $35 million capital investment. Very significant and we’re looking for the equity markets to provide that capital.
We announced our half-yearly results just recently and our revenue numbers are up around 14 per cent, and our EBITDA number is up around 10 per cent. And we’re very proud about that performance. And we think the growth opportunities in the market will enable us to continue to deliver that performance.
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