Radius Residential Care (RAD) H2 2024 earnings summary

Executive summary

• Achieved record full-year trading with a 47% increase in Underlying EBITDA and strong operating cashflow, reflecting leadership in specialist care offerings.

• Improved hospital and specialist care resident mix, with 28 village unit sales and $1.8m in resale gains.

• Delivered $1.3m in annual support office cost savings and resumed dividends.

• Fully staffed care homes with 1,700 employees and significant internal promotions.

• Industry headwinds, such as staffing shortages and interest cost pressures, have largely subsided.

Financial highlights

• Underlying EBITDA reached $20.9m, up 47% year-over-year; operating cashflow rose 249% to $14.1m.

• AFFO increased 87% to $7.4m; Underlying EBITDAR per care bed up 24% to $24.7k.

• Total revenue grew 17% to $171.2m; accommodation supplements up 24% to $9.8m.

• Net debt reduced by $26.5m to $73.5m, with no short-term borrowings.

• Final dividend of 0.70 cents per share paid, with a payout ratio of 27% of AFFO.

Outlook and guidance

• Expects continued growth in Underlying EBITDA and other key metrics in FY25.

• Board targets a return to interim and final dividend cycle in December and June, respectively.