As one of the worst-performing stocks of the year and the fury of financial analysts for many more, Ryman Healthcare has been a financial disaster, its executive chairman Dean Hamilton admits. 

“Yeah, I think the financial performance has slowly deteriorated,” he told Markets with Madison. 

“A bit like being in a boiling pot, and then when you look at it five years later you go, ‘How did the business get to this position?’” 

In an extensive interview, Hamilton detailed every area in which the retirement village operator went wrong, and what he and Ryman’s refreshed board were doing to right the ship. 

The company was too bullish on growth, ultimately leading it to take on too many developments and too much debt, he said. 

At its peak, it had 14 villages under development and $3 billion of debt on its books. 

“It was enormous. And that just ultimately got beyond the capability of the organisation.” 

The company was formerly using its borrowings to pay shareholders a dividend, and directors were internally assessing the value of its property portfolio. 

“Directors got comfortable, the auditor got comfortable.” 

Ryman executive chairman Dean Hamilton detailed every area the business went wrong in an extensive interview on the Herald's show Markets with Madison. Photo / Michael Craig 

Hamilton and his colleagues had canned all of the above, selling three land sites, suspending the company’s dividend until the 2026 financial year, ditching its lawyers, reviewing its auditors and handing its property valuations to an independent assessor. 

The latter caused a large drop in its property values on paper, resulting in a 98 per cent decline in its annual net profit to $4.8 million in the year to the end of March. 

It was reviewing more costs to be cut, after overheads, especially at its head office, had risen by more than its resident count across its 48 villages in New Zealand and Australia, Hamilton said. 

“A simple person like myself doing that maths, that doesn’t feel right.” 

Doing the maths now; Ryman was selling three of its land bank sites, debt had reduced to $2.5b after a $902m capital raise last year was used to pay some of it down and four executives had left the company, including the former chief executive and chief financial officer. 

A search for a new chief executive was under way, but for the time being, Hamilton was in the driving seat. 

“Never waste an opportunity, Madison!” 

Watch Dean Hamilton discuss his plan to rescue Ryman and restore investor faith in the retirement village operator in today’s episode of Markets with Madison above. 

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, YouTube and wherever you get your podcasts. 

Sponsored by CMC Markets. 

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances. 

Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.