Latest company results: Newly listed Radius turns loss into profit, Eroad posts 13% rise in full year earnings

Aged-care specialist Radius Residential Care issued its maiden result as a listed business today, announcing it had turned last year’s loss into a profit and pushed up revenue.

The company’s net after-tax position changed from last year’s $2.8 million loss to $1.7m profit. Results are for the years to March 31.

Revenue rose from $113m last year to $121m.

But the pandemic and hiring more management took a toll on staffing costs at the business which listed on the NZX in December.

“The closure of New Zealand’s borders in March 2020 led to a requirement to recruit nurses from the local labour pool which, together with a strengthening of the senior management team ahead of the NZX listing, contributed to a 5.1 per cent increase in employee costs,” Radius said.

Stuart Bilbrough, chief executive, said the pandemic had resulted in Radius locking down all its places during the level 4 alert.

Radius leases 1537 aged care beds from third parties. It owns five sites but leases a further 19 from other parties. All up, it owns 254 village units and aged-care beds.

The company did not issue any new shares when it listed six months ago and the listing was purely so it could expand.

Radius has 22 geriatric or aged-care hospitals. Combined with the villages, it says it has 1700 residents.

It owns Elloughton Village in Timaru, Windsor Court in Ōhaupō in the Waikato and bought a 4.3ha Belfast, Christchurch property.

Bilbrough said Christchurch City Council had issued a resource consent to allow Radius to develop an integrated aged care and retirement village project with 70 hospital beds, 30 care suites and 94 retirement village units.

“We are now focused on the final design process, obtaining building consents and commencing construction contracting discussions in relation to this development. The facility will be able to be constructed across multiple stages providing a degree of funding flexibility with the optimal timing to be determined as the planning progresses,” Bilbrough said today.

The company was founded in 2003 and has national operations. Of the 22 properties where it operates, it only owns three and leases 19 from landlords.

Radius plans to develop new sites and in a presentation on the NZX in December, cited greenfield as well as brownfield or existing development sites with expansion potential.

The Herald reported this month how Deputy Health and Disability Commissioner Rose Wall found the Radius Elloughton Gardens rest home in Timaru breached the Code of Health and Disability Services Consumers’ Rights after the woman suffered serious injuries in its care in 2018.

In March, the NZ Herald reported on HDC findings after a woman died of dehydration, also in 2018.

Radius stood by the level of care provided to the woman, stating that although she refused her food and fluids, staff continued to offer it to her.

President of the local Grey Power chapter Jock Anderson said this month an apology was not enough.

Radius-branded properties it operates include Baycare in Northland, Aaron Court and Waipuna in Auckland, Taupaki Gables in Kumeu, Tauranga’s Matua and Althorp, Lexham Park in Katikati, Heatherlea and Thornleigh Park in New Plymouth, Windsor Court in Ohaupo, Hamilton’s Kensington, St Joans and Glaisdale, Peppertree in Palmerston North, Potter Home and Rimu Park in Whangarei, Hampton Court in Napier, Hawthorn in Christchurch, Millstream and Millstream Apartments in Ashburton and Fulton Home in Dunedin.

Today, Radius said it would pay an interim dividend next month bringing the annual dividend to 1.46cps.

The company is projecting to make underlying EBITDA of $23.5 to $25.5m for the March 31, 2022 financial year.

Shares in Radius are trading unchanged at 91c and compared to the giants of the listed retirement sector, the company has a small market capitalisation of $160 million.

Eroad posts 13% rise in full year earnings

Eroad saw its revenue jumped 13 per cent to $91.6m for its financial year ended March 31, 2021, and said it is ready to hunt down growth opportunities emerging from challenging Covid-affected markets.

The NZX-listed fleet logistics company made a net profit of $1.9m against its year-ago net profit of $1.4m. Ebitda was also up 13 per cent at $30.7m.

Chairman Graham Stuart noted the company’s ASX listing and simultaneous $53m capital raise in September 2020 ensured upfront funding to accelerate its growth plan. The company sees opportunities in the global telematics industry, which is estimated to grow to US$750 billion by 2030.

“As countries around the world look to solve their transportation problems and as companies look to solve their operational problems – the demand for telematics and our products grows.

“Our customers are going through a digital transformation and therefore are looking for solutions that give visibility, data and insights to manage their fleets more productively, track and manage mobile and remote assets as well as help with their ESG reporting requirements.”

Eroad has kept to its guidance issued at the half year, saying it anticipatesthe percentage revenue growth in 2022 will strengthen from that delivered in 2021, but not be at the level experienced in 2020.

Eroad shares closed Thursday at $5.41, having gained 130 per cent over the past 12 months.

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