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 FY25 Trading Update, released on 09 April 2025:

Preliminary Key FY25 Financial Metrics (Subject to Completion of Audit):

• Underlying EBITDA1 of $23.3m - $23.7m, vs $20.9m for FY24 (FY24 included one additional care home for nine months).

• Underlying EBITDA1 growth of c23% for the second half year (2H25) vs 2H24.

• EBITDAR per occupied bed1 of $27.9k (vs $24.7k for FY24).

• Average occupancy for FY25 of 92.8% (vs 91.8% for FY24). Occupancy for the last week of FY25 was 93.9%.

• Drawn debt of $70.2m (vs $75.9m for FY24).

• Net Interest Expense of $6.1m (vs $9.5m for FY24).

“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. 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.

Radius Care intends to release its full audited financial results for the FY25 year in late May 2025.