Aveo Group reported group and trust earnings results for the six months ended December 31, 2017. For the period, on group basis, the company reported statutory profit after tax AUD 149.3 million, up 23% on half year of fiscal 2017. This result was driven by a continued focus on strengthening the group's retirement business and development activities and underpinned by the continuing revaluation uplifts in the retirement portfolio and the sale of the Gasworks complex at Newstead, Brisbane at a substantial premium to its book value. The company's net tangible assets per security were up 8% to AUD 3.63. Underlying profit after tax and non-controlling interest was down 33% to AUD 36.3 million. Earnings per stapled security on underlying profit after tax and non-controlling interest were down 33% to 6.4 cents. Funds from operations were AUD 45.7 million against AUD 82.8 million a year ago. Total retirement revenue was increased by 13% to AUD 153.2 million, driven by higher contributions from both the Development and Care and Support Services segments. Revenue was AUD 208.0 million compared to AUD 232.4 million for the same period a year ago. Profit from continuing operations before income tax was AUD 149.3 million compared to AUD 143.5 million for the same period a year ago. Diluted earnings per stapled security were 26.1 cents compared to 21.4 cents for the same period a year ago. Net cash flows from operating activities was AUD 59.2 million compared to AUD 150.0 million for the same period a year ago. Payments for property, plant and equipment was AUD 21.2 million compared to AUD 25.9 million for the same period a year ago. Payments for intangible assets were AUD 0.6 million compared to AUD 0.7 million for the same period a year ago.

For the six months, the trust group announced revenue was AUD 15.6 million compared to AUD 8.3 million for the same period a year ago. Profit from continuing operations before income tax was AUD 15.4 million compared to AUD 6.7 million for the same period a year ago. Profit for the half-year was AUD 15.2 million compared to AUD 6.7 million for the same period a year ago. Diluted earnings per stapled security were 2.7 cents compared to 1.2 cents for the same period a year ago. Net cash flows from operating activities was AUD 3.7 million compared to AUD 17.7 million for the same period a year ago. Payments for property, plant and equipment was AUD 26.6 million.

The company reaffirmed its financial guidance for fiscal year 2018, which was provided with the fiscal year 2017 results, of: EPS of 20.4 cents per security, 7.9% higher than the 18.9 cents per security delivered in fiscal year 2017; and retirement return on asset target in the range of 7.5% - 8.0%. The effective tax rate is expected to be at 17%. Full year margins are expected to be around 30%.

The second half of fiscal 2018 effective tax rate is expected to be 20%.