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Aged care provider Radius Residential Care has reported record underlying profit growth of 32 percent, despite a difficult trading period.
Key numbers for the 12 months ended March compared with a year ago:
- Net loss $2.1m vs $2.7m profit (reflects drop in valuation gains and higher interest costs)
- Total revenue $150.0m vs $135.9m
- Underlying profit $14.2m vs $10.7m
- Assets $356.6m vs $290.1m
LI] Final dividend none vs 0.55 cents per share
"FY23 was extremely challenging with ongoing Covid-19 impacts and extreme weather events," chief executive Andrew Peskett said, adding Radius had also been challenged by a shortage of nursing staff.
"More recently, we have been successful in recruiting a large number of internationally qualified nurses to help to fill our vacancies which will support our existing teams and place us in a strong position moving forward."
He said the property side of the business had grown to 24 facilities, including 13 owned and 11 leased.
Radius Care also had 76 care beds and 311 units or care suites in its development bank as of 31 March.
Direct private revenue paid by residents for non-government funded services and accommodation supplement income rose 17 percent to $7.9 million. More than 68 percent of its rooms attracted a premium income.
"With the current economic and care home funding environments remaining challenging, Radius Care is focusing on the recently commenced business improvement programme including streamlining operations and portfolio optimisation," Peskett said.
"The fundamental industry drivers of increased demand for high acuity and specialist care services places Radius Care in a strong position to continue to drive market leading returns as it has demonstrated in FY23."
The company was also in the process of reviewing its portfolio position, as part of a requirement to raise equity of not less of $30m by 31 July, as part of a review of its debt position.
The company had $23m bridge facilities, which were put in place on 6 May 2022 and would have to be repaid by 6 October.