Radius Residential Care Limited (NZX: RAD) today announced its results for the six months ended 30 September 2024.

Highlights:
• Underlying EBITDA of of $10.6m1, adjusted for the sale of one care home, was 14% up on comparative period (pcp).
• EBITDAR per bed was $13.4k2 for the half year, up 10% on $12.2k for the six months ended 30 September 2023.
• Net Profit After Tax was $2.0m, up 39% on the pcp.
• Operating Cashflow of $6.6m, up $1.0m on the pcp.
• Occupancy was 93.4% at period end, ahead of industry average.
• Financing costs decreased by $1.8m, or 35%, on the pcp.
• Interim cash dividend of 0.65 cents per share, fully imputed.
• Acquisition of 51% of Cibus Catering, completed on 25 October 2024.

People
“I want to give immense thanks to our exceptional people, who have continued to deliver exceptional care to our residents. Radius Care has once again delivered industry leading results and continued earnings growth despite having one less care home in our portfolio following the sale of Arran Court in January 2024” said Andrew Peskett, Radius Care’s CEO.

Certification audit results achieved during the first half of this financial year are testament to the quality of care provided to our residents. Currently, 15 of our care homes have attained the maximum four-year certification period (up from seven as at 31 March 2024), with another two likely, following recent audits.

Business Performance

Radius Care’s business has delivered growth in all key metrics. Occupancy levels remained strong and above industry averages, lifting to 93.4% at the end of the period. The strong operating performance was assisted by improved bed mix, growth in accommodation supplement revenue and tight cost control. “The quality of our operating performance and industry leading results positions Radius Care for accelerated growth. The recent acquisition of a 51% stake in Cibus Catering, a specialist provider of catering, menu and nutrition planning to the Aged Care sector, will immediately contribute to growth”, said Mr Brien Cree, Radius Care’s Executive Chair. 1 Underlying EBITDA is a non-GAAP (unaudited) financial measure. A reconciliation is
included within the Investor Interim Report and the Investor Presentation. 2 Earnings before interest, tax, depreciation, amortisation and rent.

Financial Performance

Radius Care’s key performance measure, Underlying EBITDA, was $10.6m, 14% up on the pcp, adjusted for the sale of one care home. EBITDAR per bed was $13.4k for the six months ended 30 September 2024 (an increase of 10% on the pcp). These results were driven by stronger operating metrics across the business, despite having one less care home in the portfolio. Net Profit After Tax was $2.0m (up 39% on the pcp). Other financial metrics all demonstrated growth on the pcp. Revenue increased 7% on the prior period to $85.4m (adjusted for the sale of one care home). Operating Cashflow was $6.6m (up 18% on the pcp).

Dividend

A cash interim dividend of 0.65 cents per share has been declared for the half year. The dividend will carry full imputation credits, resulting in a gross dividend of 0.90 cents per share. The dividend will be paid on 19 December 2024, with a record date of 5 December 2024. The Board has determined that the Dividend Reinvestment Plan will not apply to this dividend.

Development Update

Radius is actively pursuing several opportunities to lease or acquire care homes, including partnering with Senior Trust as announced at the annual shareholders
meeting. An application for resource consent has been made for the development of six additional villas at Matamata Country Lodge.
Advance planning is also continuing for the previously announced full-service retirement village and care home in Belfast, Christchurch.

Cibus Catering

Radius Care’s acquisition of 51% of Cibus Catering completed on 25 October. Cibus provides full-service kitchen management to 25 sites, including ten Radius Care homes, as well as menu planning and nutrition services. Cibus represents an important step in our strategy to accelerate growth through diversification into adjacent services that are complementary to our core offering.

Outlook
Radius Care reiterates earlier guidance that key metrics for full year FY25 are expected to exceed the equivalent FY24 metrics despite having one less care home. The consolidation of the recently acquired 51% stake in Cibus Catering Ltd will also be immediately earnings accretive.

Radius Care has acquired 51% of Cibus Catering. The NZX announcement can be read here.

This acquisition represents another significant step in Radius Care’s strategy to diversify revenue and accelerate growth, and we’re thrilled to welcome the Cibus team to our Group.

Forsyth Barr have initiated coverage on Radius Care. To read the report, please click the link below:

Radius Care Aged Care focus drives superior returns 2024

Radius Care Limited (NZX: RAD) is pleased to announce the appointment of Andrew Peskett as its new Chief Executive Officer (CEO), effective today, 1 February 2022.

Andrew brings extensive experience in the retirement village and aged care industry, having previously been a senior executive at Metlifecare, a leading New Zealand retirement village operator with total assets in excess of $4 billion. After several years working in large London law firms, Andrew returned to New Zealand and joined Metlifecare in 2007, holding roles including Acting Chief Executive Officer, GM Corporate Services, Acting GM Operations and General Counsel & Company Secretary.

Andrew played a significant role in the transition of Metlifecare from listed to private ownership under its new owners, EQT. After helping to design and implement the company’s post-takeover strategic plan, Andrew joined Radius Care as Special Projects Lead in November 2021.

Radius Care’s Executive Chair and Managing Director, Brien Cree said “Andrew’s expertise in retirement villages and proven record as an energetic and results-driven leader will be invaluable to Radius Care as we execute our near-term opportunities and planned growth strategy. He will lead key elements of this strategy including increased ownership of our existing care homes and greenfield and brownfield projects to widen the offering to Radius customers by providing more independent living Occupation Right Agreements (ORAs). Another key element will be portfolio optimisation including increased premium charging and the provision of ORAs on care suites.”

Andrew added “I am delighted to accept the role of CEO at Radius Care and am looking forward to leading the company through its next phase of growth. Radius Care’s vision statement is Exceptional People, Exceptional Care (EPEC). I absolutely support this philosophy and see it as being key to providing long-term, sustainable shareholder value.”

OK, well maybe not that Florence and definitely not since 1820, but Radius Care, a leading aged care provider, recently debuted its new self-check-in kiosk. The digital device is obviously named after the founder of modern nursing, Florence Nightingale. This new digital Florence offers unique advantages to nurses over the traditional aged care check-in experience.

The pandemic created overnight requirements for Radius Care to ensure that visitors and staff weren’t bringing in the virus. Nurses have always needed to health screen visitors entering an aged care facility, but previously a paper questionnaire was needed to assess if the visitor met the check-in safety requirements. Then the pandemic heaped more time and administration on an already time consuming and administratively heavy task.

“The requirements of the pandemic took nurses further from away from their real jobs. Essentially, there was a full-time nurse checking people in – it was a necessary, but poor, use of limited nursing resources. They had to ask about close contacts, locations of interest, and they had to do it again if the person came the next day. Florence now automates the tasks, she even does temperature checks,” says Corrie Bronkhorst, RN and Quality Manager at Radius Care.

Corrie helped inform the design of the system so it could help nurses get back to caring for people. It was her job to ensure the new system integrated the new thermal scanning and contact tracing requirements that came with Alert Level 3 last year.

Corrie’s input led to what Florence is today, a system to streamline and automate entry processes. The unit lets users create a profile, maps contacts, locations of interest, and family members, handles sign in and sign out, asks the necessary health questions, and does a temperature check. If an alert is triggered, the visitor will be denied entry and a call will go to an appropriate person to handle the conversation, instead of a nurse. The system logs all the data and give users a QR code to scan for easy access to the facility, and Florence is soon to integrate vaccine passports too.

Corrie says the nurses’ experience with the kiosk has been overwhelmingly positive.

“Florence saves our nurses a lot of admin time. They’re really happy getting back to the floor so they can look after our residents. You become a nurse to look after people who aren’t able to look after themselves, and Florence has allowed our nurses be nurses again,” says Corrie.

Immobile 70yo had to be hoisted out of bed – but can now walk on her own.

Janice McIvor suffered so badly after a serious fall, she couldn’t get out of bed and had to be hoisted into a chair. Now she can walk on her own again.

Doctors told the 70-year-old she might never able to walk again after falling when getting out of a taxi several years ago – but the gym at her Radius Care home in Christchurch has helped take care of that.

Janice, a resident at Radius Hawthorne in Bryndwr, is one of the many success stories the aged care facility has seen after setting up a gym on site seven years ago. Bill Parker, the exercise-focused activities co-ordinator at Radius Hawthorne, runs the gym and says it’s exciting to see the difference exercising makes to the elderly residents.

McIvor’s case is particularly inspiring: “Her injuries included lacerations and a broken femur and her prognosis wasn’t good. She spent three months in bed and lost her mobility. Because she couldn’t walk, she had to be hoisted out of bed and into a chair.”

McIvor slowly regained some mobility and strength thanks to sessions in the gym: “She was incredibly dedicated and hard-working,” says Parker. “We worked at getting her standing using handrails we have in the gym, then we set a goal for her to take a few steps. Then we increased that to being able to walk out of her room, and then walking to the lounge. It took a long time but she got there in the end.

“Janice has kept going and is doing really well. Even when she was in a wheelchair, she’d be in the gym, hitting the punching bag, and she is the first one at our exercise classes. Her whole life has changed and she’s quite proud of herself.”

The benefits of exercising for the elderly include building muscle strength, increasing flexibility, improving mobility and helping with cognitive function. It’s also good for balance and coordination, which may prevent falls.

Parker, who has been at Radius Hawthorne for over 20 years, is a keen sportsman who recognises the importance of staying active, especially as we age. He could see that a gym would be a great asset for the residents and around seven years ago, thanks to a generous donation from a resident, realised his dream of being able to set up a space with equipment including a treadmill, a recumbent excercycle and two upright excercycles.

Parker, who has been at Radius Hawthorne for over 20 years, is a keen sportsman who recognises the importance of staying active, especially as we age. He could see that a gym would be a great asset for the residents and around seven years ago, thanks to a generous donation from a resident, realised his dream of being able to set up a space with equipment including a treadmill, a recumbent exercycle and two upright exercycles.

He also installed a punch bag and bought weights and resistance bands for strength and resistance training and holds twice-weekly exercise classes.

The gym is now hugely popular, with some residents coming to work out nearly every day. “There is a waiting list to get into the exercise class, it is standing room only,” Parker says.

Before they start at the gym, residents must have the go-ahead from their doctor; exercise plans are formulated according to their capabilities and any health conditions they may have.

Parker says they’ve had amputees who welcome the chance to get moving and dementia patients who may struggle to do other activities, but can exercise.

“Even if you haven’t ridden a bike for 50 or 60 years, once you get on that exercycle, you remember how to pedal.”

Then there is the impact on mental well-being: “That is huge. Exercise can help with mental health and coming to the gym gives them the chance to get out of their room and socialise, which is really good for mental health.”

Parker plays music which helps to create a fun atmosphere and many of Radius Hawthorne’s gym goers say their sessions give them something to look forward to. Respite patients have even asked to go to the facility because of the gym.

Parker recalls one 70-something woman who became a huge fan of the recumbent bike: “She started off doing a kilometre and liked it so much she wouldn’t get off. She’d be on the bike, eyes closed, listening to the music and just going and going. She’d do 20km at a time.” Another resident spends an hour every day on the exercycle.

He finds real joy in seeing how much residents enjoy their time in the gym and seeing improvements in their wellbeing, no matter how minor.

“It’s really hard to lose your mobility and have things start to go wrong, especially when you’ve been independent and strong in the past,” Parker says.” We’ve got people who used to have physical jobs, like being farmers or foresters, or working at meat works. They’re tough, they want to be able to do move around and do things without needing help.

“So to get back even a tiny bit of your mobility and be able to do things you’ve been unable to do for a while is really important.”

Helping people to do that is extremely rewarding: “I’ve done a lot of things in my life but there is nothing that has been more satisfying than what I am doing now with the gym.”

Radius Care has a range of videos with advice on moving into care.

– Originally published by The New Zealand Herald. Republished with permission. Link

Radius Care’s second village development, Elloughton Village, offers 54 architecturally designed retirement villas on 5.35 acres of private gardens and parkland bordering rural Timaru. The chalet style villas, with views out to the Southern Alps, are available with 1 or two bedrooms, starting from $390,000.

The $24 million development project was designed by Foley Group, was delivered in three stages by Mike Greer Homes. The villas available in stage two sold very quickly, and stage three properties are selling fast. We have only 5 new villas left.

The village is built adjacent to the well-established Radius Elloughton Gardens care facility, which provides rest home and hospital level care, ensuring medical support is available nearby for village residents. A shortage of rest home beds in Timaru will be partially alleviated, and many new health care jobs created, as the expansion of Elloughton Gardens is completed.

The existing Elloughton Gardens was also upgraded to include a new 30-bed hospital wing, which increased the available spaces for residents to a total of 86 – and opened up job opportunities for a further 30 staff.

The stately Elloughton Grange building, established in 1893, provides a striking landmark in the centre of the development, which also boasts a well-equipped community centre with games room, lounge, dining area and kitchen. It regularly hosts events for residents such as movie and games nights, classes, and private family functions.

Radius Care has received wonderful feedback from buyers who are impressed with the quality of the build and the layout of the villas. They appreciate the little touches, such as plenty of inbuilt storage and an additional room for visiting families, plus the community centre which helps build the friendly village culture.

“Now Elloughton Gardens is completed, we’re looking forward to building this small-community style of retirement village in other regions,” says Brien Cree, Managing Director, Radius Care.