Radius Residential Care (RAD) H1 2025 earnings summary

Executive summary

• Achieved record half-year performance with all key metrics up, including EBITDA, occupancy, and staff satisfaction, despite challenging macroeconomic conditions.

• Completed a 51% majority acquisition of Cibus Catering, diversifying revenue streams and expected to be immediately accretive.

• Maintained high care home certification rates, with up to 74% of homes potentially holding four-year certification after pending audits.

• Declared fully imputed interim dividend of 0.65 cents per share, payable December 2024.

• Achieved record employee engagement, with a 43-point increase in employee net promoter score and strong internal promotions.

Financial highlights

• Underlying EBITDA reached $10.6m, up 14% year-over-year (excluding Arran Court sale), the highest for any six-month period.

• Net profit after tax rose 39% to $2.0m; profit before tax increased 68% to $2.8m.

• Total revenue grew 7% year-over-year to $85.4m, driven by occupancy and higher-acuity care mix.

• Operating cash flow increased 18% to $6.6m; available funds from operations up 27% to $3.6m.

• Accommodation supplements now run at $11m annually, with 70% of beds receiving supplements.

Outlook and guidance

• Key financial metrics for FY25 are expected to exceed FY24, with Cibus earnings accretive in the second half.

• Total FY25 dividends anticipated to align with policy of 50%-70% of AFFO.

• Inflationary pressures on costs are expected to ease in the second half, especially for utilities and insurance.