Originally Posted by
Joshuatree
Hi Couta.We know care facilities are low margin with the govt subsidies leaving slim profits indeed. Are the care suites higher margin and privately funded making more profits, is this the main point of difference to SUM etc?
I did ask SUM CFO Scott Scoular today at a presentation about care facilities today and how important they were to their model.The answer i got wasn't really clear except to agree they are low margin they have ratio of 1 to 5 and not that important for profits,was my interpretation.
Also he suggested house prices need to drop by $150,000 before they impact profits.
An int chart showed the 75 plus age group in NZ climbing fast but peaking 2037-42 with quite drop off thereon.