Estia Health set for lower than expected EBITDA

Company News

by Rachael Jones

Aged care provider Estia Health (ASX:EHE) have reported lower than expected EBITDA for the full year 2019, despite an increase of 2-4 per cent compared to 2018.

EBITDA is expected to be in the range of $92-$94 million.

This is due to additional funding increase, Royal Commission costs, the costs of opening new homes and home closure costs.

In addition to this, the company has decided to close its older facility at Mona Vale in order to accelerate the re-development of a well-positioned site.

This closure will negatively impact the FY19 EBITDA results by approximately $0.6 million.

Shares in Estia Health (ASX:EHE) are trading 6.2 per cent lower at $2.81.