Source: Radio New Zealand
Kzenon
Radius’s net profit has more than tripled in line with expectations.
The aged residential care provider made $6.3 million in the six months ended September compared with $2m the year earlier.
Chief executive Andrew Peskett said occupancy levels were maintained at high levels, averaging 95 percent for the half year.
“Occupancy has remained above 95 percent during October and November,” he said.
“Continued improvements in bed mix, accommodation supplement growth, control of operating costs and the contribution of Cibus Catering assisted the strong first half year performance.”
He said the second half of the year was expected to be broadly consistent with the first half.
First half underlying profit was up 41 percent to about $15m, with total revenue up 17 percent to just over $100m.
The interim dividend rose to 2.2 cents per share from 0.7 cents per share the year earlier.
Peskett said record operating cashflow delivered a strengthened balance sheet and progress against the company’s capital management.
Net bank debt reduced to $63.7m giving the company headroom for development plans.
Radius Care was recently granted approval in principle by the Westland District Council to develop an 80-bed care home and a 55-villa retirement village in Hokitika, with broad support from the local community.
Peskett said 15 additional opportunities to develop new-build care homes around the country were now being actively pursued, with strong support from external property investors.
The company was also developing existing retirement villages, 12 additional villas to be built at Matamata and Clare House in Invercargill.
“The acquisition of St Allisa, a 109-bed care home in Christchurch, completed on 30 May, has been a successful example of capital light growth,” Peskett said.
He said Radius Care’s expansion into home care services required minimal capital, while helping to ease hospital congestion and expand Radius Care’s market reach.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
