CEO Andrew Peskett noted that occupancy levels remained high at an average of 95 percent for the half year, with October and November also seeing occupancy above 95 percent.
Peskett attributed the strong performance to improvements in bed mix, growth in accommodation supplement, cost control, and the contribution of Cibus Catering.
He anticipates the second half of the year to be consistent with the first, with underlying profit increasing by 41 percent to approximately $15 million and total revenue up by 17 percent to over $100 million.
The interim dividend has increased to 2.2 cents per share from 0.7 cents per share in the previous year.
Record operating cashflow has strengthened the balance sheet and progress has been made in capital management, with net bank debt reduced to $63.7 million, providing room for development plans.
Radius Care has received approval from the Westland District Council to develop an 80-bed care home and a 55-villa retirement village in Hokitika. Additionally, the company is actively pursuing 15 opportunities to develop new-build care homes across the country with support from external property investors.
Existing retirement villages are also being expanded, with 12 additional villas planned for Matamata and Clare House in Invercargill. The acquisition of St Allisa, a 109-bed care home in Sockburn, Christchurch, has been a successful example of capital-light growth.
Radius Care’s expansion into home care services requires minimal capital and aims to alleviate hospital congestion while expanding the company’s market reach.
