25 Nov 2022

Radius Care lifts half-year profit to $1.7m

12:24 pm on 25 November 2022

Operating costs were up 10 percent, largely caused by staff wages. File pic Photo:

The aged care operator Radius Care has posted an improved half-year profit as it grew its number of beds, with occupancy levels remaining strong.

Key numbers for the six months ended September compared with a year ago:

  • Net profit $1.7m vs $1.3m
  • Revenue $69.9m vs $64.9
  • Underlying operating profit $7m vs $5.1m
  • Interim dividend 0.7 cents a share

The company said occupancy levels remained above industry averages, with September occupancy at an average of 91.9 percent, compared to 92 percent for March.

It also increased the number of available beds by 81 for the six months ended September.

"We were delighted to be able to add an exceptional new operation, Matamata Country Lodge, to our portfolio in late September," Radius Care's executive chair Brien Cree said.

"It's a very high-quality facility with high occupancy and often has a waiting list. With nearly 50 retirement village units, it provides further evidence of execution of our growth strategy," he said.

Operating costs were up nearly 10 percent on the prior year to $70.8 million, largely driven by employee costs.

In May the company settled the acquisition of the land and buildings of four facilities it previously leased.

"At the end of September, Radius Care's portfolio had grown to 24 facilities of which 13 are owned and 11 leased," Cree said.

"The last six months demonstrate that Radius Care continues to go from strength to strength. We're continuing to position our asset base in line with Radius Care's strategy and to deliver positive results for shareholders."

Radius expected its second-half performance to improve following the recent acquisitions.

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