Radius Residential Care Limited Analysis

Overview

Radius Care is a New Zealand owned and operated company, established in 2003 to meet New Zealand’s growing demand for an aged care and associated health care services. Since then, Radius has become one of the leading specialist health care providers in New Zealand, with more than 20 locations nationwide.

Early in 2010, chief executive and director Brien Cree led a management buyout of the company, which brought it back into New Zealand ownership from foreign investors. Brien's vision was to “bring some good old fashioned Kiwi values and standards” back into the aged care sector, and to make Radius Care the best aged care provider in the country.

Performance

The following information has been extracted from Radius Care's Half year results, released 19 November 2025

Highlights:

• Net Profit After Tax was $6.3m, up +221% on the previous comparative period (pcp).
• Earnings per Share was 2.2cps, up +1.5cps on the pcp.
• Available Funds from Operations* (AFFO), was $7.2m, up +99% on the pcp.

-Underlying EBITDA of $14.9m**, up +41% on the pcp.

• Interim cash dividend of 1.0 cent per share (fully imputed), up +54% on the previous interim dividend of 0.65 cents per share.
• Operating Cashflow of $13.3m, up $6.7m on the pcp.
• Occupancy was 95.0% for the period, up 2.7 percentage points on the pcp.
• Annualised EBITDAR per bed was $29.9k*** for the 12-month period ended 30 September 2025, up +7% on the $27.9k reported for FY25.
• Financing costs decreased by $0.7m, or -21%, on the pcp.

Financial Performance:

Profit Before Tax and Net Profit After Tax for the half year included the benefit of lower bank interest costs of $2.6m, a decrease of $0.7m on the pcp. Profit Before Tax increased to $8.5m (up +209% on the pcp) and Net Profit After Tax increased to $6.3m (up +221% on the pcp).

Underlying EBITDA was $14.9m, +41% up on the pcp. EBITDAR per bed was $29.9k for the 12-month period ended 30 September 2025 (an increase of +7% on the $27.9k reported for FY25). These results were driven by stronger operating metrics across the business, including occupancy and improved bed mix.

Other financial metrics all demonstrated growth on the pcp. Revenue increased 17% on the prior period to $100.2m. Operating Cashflow was $13.3m (up +102% on the pcp). Available Funds from Operations (AFFO) was $7.2m.