New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Ryman Healthcare (RYM) reported a strong 1H24 result and delivered on all key markers on its path to re-establishing itself as a cash generative, sustainably growing business after three difficult years.</li><li>Specifically: (1) cash generation from existing operations swung from a negative in 1H23 to +NZ$50m in 1H24; (2) care EBITDA margins are on track to double from ~6% in FY23 to ~12% in FY24, re-tracing almost half of the drop since pre-COVID (~19% in FY20); and (3) RYM reiterated its target to be free cash flow positive in FY25 and onward. It gave substantial additional disclosure to support the credibility of that target.</li><li>None of the four major listed aged care operators have delivered a single year of positive free cash flow over the last decade. </li></ul>

Ryman Healthcare (RYM) reported a strong 1H24 result and delivered on all key markers on its path to re-establishing itself as a cash generative, sustainably growing business after three difficult years.Specifically: (1) cash generation from existing operations swung from a negative in 1H23 to +NZ$50m in 1H24; (2) care EBITDA margins are on track to double from ~6% in FY23 to ~12% in FY24, re-tracing almost half of the drop since pre-COVID (~19% in FY20); and (3) RYM reiterated its target to be free cash flow positive in FY25 and onward. It gave substantial additional disclosure to support the credibility of that target.None of the four major listed aged care operators have delivered a single year of positive free cash flow over the last decade. 

Ryman Healthcare - 1H24 Result — What a Difference a Year Makes