Summerset Group Holdings Ltd (ASX:SNZ) profit up 26%

Summerset Group Holdings Ltd (ASX: SNZ) has advised its underlying profit for the six months to June 30 2018 will rise

a woman

New Zealand retirement home and hospital group Summerset Group Holdings Ltd (ASX: SNZ) has advised its underlying profit for the six months to June 30, 2018, will be up between 21% and 26% on the previous corresponding period.

According to an earnings guidance announcement today, Summerset will report underlying profit of between NZ$43 million and NZ$45 million for the period off the back of "strong development margins" on settled homes over the first half.

Sales and resales volumes are also on track with full financial results to be handed down on August 14.

On home soil companies intending to cash in on the ageing population include Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) which has been having a tough time of late as its share price tumbled to multi-year lows off the back of challenging industry dynamics and private health insurance declines.

Goldman Sachs placed a sell rating on Ramsay earlier this month, but many investors keen on its growth prospects in the private hospital sector might see it as hovering in buy territory.

Healthscope Ltd (ASX: HSO) shares have also tumbled into the red of late, down 0.2% to $2.24 at the time of writing.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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