Summerset shows how business is Really done

The Retirement Village group has announced increased sales by over 50% on forecasts.

Wellington, New Zealand (prHWY.com) July 25, 2012 - Summerset shows how business is really done.

Summerset, the Wellington residential retirement care group which floated last year, has revealed a surge in sales well ahead of its prospectus forecasts.

In the six months to June 30, Summerset, which generates most of its profits from the sales of units in its integrated care retirement villages, made 83 new sales compared to 41 in the same period a year ago and 67 in the second half of 2011.

In the prospectus for its 2011 initial public offering, Summerset forecast 134 sales for the year to December 31, 2012, however a repeat of first half sales would see the figure topped by 24 per cent. There is certainly hope for investors here as so many industries have forecast unrealistic sales forecasts believing Australasia would remain unscathed by the lingering financial unease.

Resales - sales of units vacated by existing tenants - were 88 in the first half, a 52 per cent increase over the first half of 2011.

Chief executive Norah Barlow said sales had been strong but the company gave no indication about whether it expected it would top full year sales.

We see no reason that those sales don't continue; we just don't want to be creating over expectation in any market. We're very happy with what we've done so far.'' "Happy" is word most CEOs would keep out of their vocabulary as being too simple and yet, over expected sales figures are just that - simple. It's this kind of down-to-earth simplicity that has established the Summerset brand as a trusted name in rest home care.

Once again, this retirement village company has led the way in understanding that taking care of shareholders must come from taking care of business first. They have not deviated from their business model in order to attract initial offering gains based on false expectations. Summerset kept true to incorporating integrated care, residential care and rest homes along with independent living retirement villages.

By keeping focus on their core business strengths, Summerset also kept their sales focus entirely in-line with the market and recent consumer sentiment. Too many businesses are losing sight of these aspects and create increasingly hard to meet sales targets along with souring investor relations by promising overwhelming sales forecasts.

The sales had been strong at all seven villages where Summerset was still developing new retirement and lifestyle villages, Barlow said. This is good news for consumers looking for integrated, residential care and for shareholders looking for positive returns on investments made a relatively short time ago.

Shares in Summerset rose 4 cents on the news to $1.67, compared to an all time high of $1.73 at the start of May but well above its listing price of $1.40.

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Tag Words: rest homes

Categories: Home And Garden

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Summerset/
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04-894-7320/
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