…and Radius reporting FY25 “materially ahead” of prior year

9th April 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Radius Residential Care Limited says it expects to release a “strong” set of FY25 operating results, due to robust trading during its final quarter.

The NZX-listed company, which operates 23 aged care facilities, said today that preliminary figures for the year to 31 March 2025 showed underlying earnings before interest and tax of between $23.3m and 23.7m, up from $20.9m reported for FY24.

Underlying earnings for the second half of FY25 was up 23% on the prior corresponding period.

Average occupancy for FY25 was 92.8%, up from the previous year’s 91.8%, with earnings per occupied bed of around $27,900, up from $24,700.

“Our strong occupancy demonstrates there is ongoing demand for high quality residential aged care services, and in particular for high acuity hospital care,” said Brien Cree, Radius Care’s executive chair.

“As a specialist care provider with a clear focus on our core business, Radius Care’s exceptional people have once again delivered industry leading results and profitable growth across the group.”

The company reported drawn debt of $70.2m, a drop from FY24’s $75.9m, with net interest expense of $6.1m, down from $9.5m.

Radius Care chief executive Andrew Peskett said: “The strong operating performance in FY25 was driven by a number of factors and gives Radius Care a strong foundation for continued growth.”

Peskett added that those factors included:

• “Exceptional people leading our 1,700 committed team members delivering exceptional care in our care homes.
• “Increased Accommodation Supplement revenue (+$1.0m / +11% vs FY24).
• “Strong occupancy and improved mix, with higher-revenue Hospital and ACC occupancy.
• “Contribution of Cibus Catering (51% interest acquired on 1 October 2024).
• “Reduced debt and lower interest rates decreasing interest costs by $3.4m.”

During the period, the company acquired a 51% holding in Cibus Catering, which provides menu planning and nutrition management services to the aged care sector, as well as full-service kitchen and food management to 25 care homes across New Zealand, including ten Radius Care sites.

Of its 23 aged care facilities, of which it owns 12 and leases 11, four of the owned facilities also include retirement villages.

Radius Care said it will release its full audited financial results for FY25 later this month.