Radius Care Continues Strong Growth with Record FY25
21 May 2025
Radius Care Continues Strong Growth with Record FY25
Radius Residential Care Limited (NZX: RAD) today released its audited financial
statements for the year ended 31 March 2025, confirming another record operating
and financial performance.
Key financial highlights:
• EBITDAR per occupied bed
1
of $27.9k, +13% up on FY24.
• Underlying EBITDA
1
of $23.5m, +20% up on FY24, adjusted for the sale of a care
home.
• Operating Cashflow of $20.1m, +42% up on FY24.
• AFFO
1
of $8.8m, +18% up on FY24.
• Profit Before Tax of $10.5m, up +191% on FY24.
• Net debt reduced by -8% to $67.7m.
• Cash final dividend of 0.8cps (up 14% on FY24 final dividend), with full imputation
credits resulting in a gross dividend of 1.11cps, to be paid on 19 June 2025.
“Radius Care is a specialist provider of essential healthcare services across New
Zealand. Strengthening occupancy in our aged care business demonstrates there
is ongoing demand for high quality residential aged care services, and in particular
for high acuity hospital care” said Brien Cree, Radius Care’s Founder and Executive
Chairman.
People
Andrew Peskett, Radius Care’s CEO, commented “Radius Care has over 1,900
exceptional people in our team, providing exceptional care to our residents. Our
people provide such a high standard of care that we have increased the number of
care homes with the maximum four-year certification to 16 (from seven last year).
Importantly, our people are very engaged - staff turnover has reduced to 17%. We
are excited to welcome the residents and team at St Allisa in Christchurch to Radius
Care later this month.”
Business performance
Mr Peskett said “the record operating performance was driven by a number of
factors:
1. Strong aged care occupancy, averaging 92.8% for FY25 (vs 91.8% for FY24), and
lifting to 93.9% in the last week of FY25.
2. Improved mix, with higher revenue, high-acuity hospital and ACC-supported
admissions.
3. Increased Accommodation Supplement revenue (+$1.0m / +11% vs FY24).
4. Contribution of Cibus Catering (51% interest acquired on 1 October 2024).
1
These measures are non-GAAP (unaudited) financial measures. A reconciliation between
the financial statements and these measures is included in the Investor Presentation.
5. Reduced debt and lower interest rates decreasing interest costs by $3.4m.”
Financial performance
Radius Care’s key performance measure, pre-NZ IFRS16 Underlying EBITDA, was a
record $23.5m compared to the previous record of $20.9m achieved for the
comparative period.
Underlying EBITDAR per bed was $27.9k in FY25 compared to $24.7k in FY24. This
key performance metric demonstrates Radius Care’s ongoing ability to deliver
industry-leading performance.
Profit Before Tax was $10.5m, an improvement of +$6.9m vs $3.6m reported in FY24.
AFFO of $8.8m was generated, +18% above the comparative period, as higher
underlying income was partially offset by increased capital investment. Cashflow
from Operations was $20.1m, +42% above the comparative period.
Net Profit After Tax increased to $7.4m from a loss of $8.5m in FY24 (the prior year
included a one-off non-cash tax expense as a result of a change in tax regulations
relating to depreciation on commercial buildings).
Borrowings further reduced during the year, with a $5.8m reduction in Net Debt as
a result of increased operating cashflow and AFFO.
Dividend policy
The Board has adopted an updated dividend policy with a payout range of between
40% and 70% of AFFO. This is expected to support both sustained dividend growth
and increased retained cash for growth investment and debt reduction.
Dividend
The Board has declared a final dividend of 0.8 cents per share for the FY25 year, 14%
above the FY24 final dividend, bringing total FY25 dividends to 1.45 cents per share
(47% of AFFO). The final dividend will carry full imputation credits, resulting in a
gross dividend of 1.11 cents per share, and will be paid on 19 June 2025. The Board
has determined that the Dividend Reinvestment Plan (DRP) will not apply to this
dividend.
Execution of our capital-light growth strategy
The recent acquisition and sale and leaseback of the 109-bed St Allisa care home,
expected to complete on 30 May 2025, will expand our core business with minimal
capital commitment. Radius Care is actively progressing projects with private
investors to deliver purpose built leased care homes from FY27. In addition, a new
100-bed care home is planned to be constructed in Christchurch and leased to
Radius Care, with first admissions in 2027.
Revenue from additional services within the aged care sector grew during the year.
The 51% interest in Cibus Catering delivered incremental EBITDA (after minority
interest) of $0.5m from 1 October. Radius Care has commenced home care services:
the company provides high-acuity private home care to several clients and has been
recently accredited as an ACC supplier. The first ACC-supported clients have been
transitioned to Radius Care.
Outlook
Trading during the first weeks of FY26 is ahead of the prior period, with occupancy
of 94.4% in April 2025 (compared to 93.9% in the last week of FY25).
Radius Care expects continued growth in key financial metrics (Underlying EBITDA,
EBITDAR per bed and AFFO) in FY26, further boosted by a full year of earnings
contribution from Cibus Catering Limited, and the addition of St Allisa’s 109 beds to
the portfolio from 31 May 2025.
ENDS
Media and Investor Contacts
Andrew Peskett
Chief Executive Officer
Phone: +64 21 747 363
Email: andrew.peskett@radiuscare.co.nz
Jeremy Edmonds
Chief Financial Officer
Phone: +64 22 650 9354
Email: jeremy.edmonds@radiuscare.co.nz
About Radius Care
Radius Residential Care Limited was founded in 2003 and listed on the NZX in December
2020. Radius Care provides essential healthcare services to elderly New Zealanders, offering
the full range of accommodation and care options in communities throughout the country.
Today, Radius Care operates 23 aged care facilities, of which it owns 12 and leases 11, and on 30
May 2025, the St Allisa Care Home in Christchurch will become Radius Care’s 24
th
facility. Four
of the owned facilities also include retirement villages and Radius Care’s online shop sells
specialist assisted-living products. The company employs over 1,900 people, including highly
qualified healthcare staff who are committed to providing the very best in nursing care, and
has expanded its services, establishing RConnect, a Nurse and Carer bureau and Home Care
provider. A 51% holding in Cibus Catering was acquired in October 2024. Cibus provides menu
planning and nutrition management services to the aged care sector, as well as full-service
kitchen and food management to 25 care homes across New Zealand, including 11 Radius
Care sites. For more information visit radiuscare.co.nz or check out our Facebook page
@RadiusCareNZ.
---
Full Year
Result FY25
I n v e s t o r P r e s e n t a t i o n
2FY25 Investor Presentation
PresentingToday
Jeremy Edmonds
Chief Financial Officer
BA, BCom, CA
Andrew Peskett
Chief Executive Officer
BA (Hons), LLB
Brien Cree
Founder & Executive Chair
3FY25 Investor Presentation
Agenda
01
Overview of FY25 Performance
Delivered record operating and financial performance
02
Analysis of Result
Record EBITDA and operating cashflow, demonstrating our
leadership in specialist care offerings
03
Executing Radius Care’s Growth Strategy
Accelerated execution of our capital-light growth strategy
04
Appendices
Key operational and financial metrics
Summary Profit and Loss, Balance Sheet and Cash Flow
Radius Hampton Court –Napier
4FY25 Investor Presentation
Our
People
LEADERSHIP TEAMS
Stable, high-performing
care home leadership.
“LEARN IT ALL” CULTURE
Focused on continuous
improvement.
RESIDENTCENTRIC
Decisions at care homes.
EXECUTIVETEAM
Regular care home visits.
RADPRO
Unique operating model.
STAFF TURNOVER
Record low of 17%.
Radius Glaisdale -Hamilton
5FY25 Investor Presentation
FY25
Business
Highlights
STRONG OPERATING
PERFORMANCE DELIVERS
EARNINGS GROWTH
STRONG OPERATING PERFORMANCE
•Record full-year with a 13%
increase in EBITDAR
1
per bed.
•20% growth in Underlying
EBITDA
2
, adjusted for the sale of
one care home.
•FY25 last week occupancy of
93.9%.
•Improved mix of higher-revenue
hospital and specialist care
residents.
•Debt reduced due to improved
operating cashflow.
•Lower financing costs.
•Final cash dividend of 0.8 cents
per share (fully imputed) declared
to be paid on 19 June 2025, +14%
on prior year.
HIGHLY ENGAGED TEAM
•Over 1,900 team members delivering
exceptional care in our fully staffed
care homes.
STRATEGIC ACQUISITIONS
•Completion of the 51% acquisition of
Cibus Catering, on 25 October 2024,
expanding complementary services.
•Completion of St Allisa acquisition,
24
th
care home on 30 May 2025.
FAVOURABLE INDUSTRY DYNAMICS
•Increasing occupancy driven by
growing demand for high acuity aged
care services.
1.Earnings before interest, tax, depreciation,
amortisation and rent.
2.Earnings before interest, tax, depreciation
and amortisation. Underlying EBITDA is a
non-GAAP (unaudited) financial measure
which is reconciled to GAAP measures
included within the Appendices of this
Investor Presentation.
6FY25 Investor Presentation
FY25
Financial
Highlights
FinancialPerformance
•Underlying EBITDAR
1
per care
bed of $27.9k, +13% from FY24.
•Underlying EBITDA $23.5m,
+20% on FY24 (adjusted for the
sale of one care home).
•Accommodation supplements
increased 11% to $10.8m.
Balance Sheet Position
•Total assets of $339.6m.
•Investment properties of
$77.1m, +$3.6m from FY24.
•Net debt of $67.7m, down
$5.8m from FY24.
•Drawn Debt of $70.3m,
down $5.6m from FY24.
1.Earnings before interest, tax, depreciation, amortisation and rent. Underlying EBITDAR is a non-GAAP (unaudited) financial measure.
2.Available Funds From Operations is a non-GAAP (unaudited) financial measure which is reconciled to GAAP measures included withinthe Appendices of this Investor Presentation.
•Operating cashflow of $20.1m, +42%
from $14.1m in FY24.
•AFFO
2
of $8.8m, +18% from $7.4m in
FY24, supporting dividend payouts.
•Final cash dividend of 0.8 cents per
share, including full imputation credits
of 0.31 cents per share, to be paid on 19
June 2025. This is 14% above prior year.
Radius Glaisdale -Hamilton
7FY25 Investor Presentation
Care Home
Certification
Four years / maximum gold
standard certification
1
Radius Care has 16 care
homes with four-year
certification (~70% of our
care homes).
1.Audit certification periods range from one to
four years. Four years is the maximum
possible period.
5
6
77
16
0
2
4
6
8
10
12
14
16
18
FY21FY22FY23FY24FY25
Number/Percentage of Total Care Homes With
4 Years Maximum Gold StandardCertification
26%
29%
30%
70%
23%
8FY25 Investor Presentation
Radius St Helenas
Analysis ofResult
E B I T D A A N D C A S H F L O W G R O W T H
D E M O N S T R A T E O U R L E A D E R S H I P I N
S P E C I A L I S T C A R E O F F E R I N G S
Radius Millstream -Ashburton
9FY25 Investor Presentation
Financial PerformanceOverview (excl Arran Court)
$m
12.7
19.5
23.5
0.0
5.0
10.0
15.0
20.0
25.0
FY23FY24FY25
Underlying EBITDA
Underlying EBITDA of $23.5m, +20% vs pcp
(adjusted for the sale of care home)
20.0
25.3
27.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY23FY24FY25
Underlying EBITDAR per Care Bed
1
Market leading returns
(adjusted for the sale of care home)
$000
1.Underlying EBITDAR for aged care
segment divided by the average
number of care beds occupied
during the period.
Continued strong
occupancy,
improved bed mix,
accommodation
supplement growth,
and tight cost
management, have
materially lifted
Underlying EBITDA
and Underlying
EBITDAR per Care
Bed.
10FY25 Investor Presentation
8% Revenue Growth (excl Arran Court)
7.8
9.7
10.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
FY23FY24FY25
Accommodation Supplements
(adjusted for the sale of care home)
$m
138.9
164.1
177.4
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
$m
FY23FY24FY25
Total Revenue
1
FY25 total revenue +8% vs pcp
(adjusted for the sale of care home)
1.Total revenue excludes other
income.
Continued strong
occupancy,
improved bed mix
and accommodation
supplement growth
delivered revenue
growth compared to
comparative period.
11FY25 Investor Presentation
Dividend
FINAL DIVIDEND
•FY25 final cash dividend of 0.8 cents per
share (with full imputation credits of 0.31
cents per share).
•Ex-dividend date –4 June 2025.
•Record date –5 June 2025.
•Payment date –19 June 2025.
•Final dividend 14% above prior year
(0.7cps).
•Total FY25 cash dividend 1.45cps (fully
imputed) representing a gross yield of 7%
(assuming a share price of $0.28).
•FY25 total dividend payout 47% of AFFO.
Radius Hampton Court -Napier
DIVIDEND POLICY
•Revised policy payout range of
40%-70% of AFFO.
•Payout range supports both
sustainable dividend growth
and growth investment.
12FY25 Investor Presentation
Strategy
Execution
Radius Hampton Court -Napier
13FY25 Investor Presentation
Executing our Capital-LightGrowth Strategy
Leased Care
Opportunities
Targeted M&A
Brownfield development
Greenfield development
Grow Scale
Grow Cibus Catering
Grow RConnect
Expand Radius Shop
Expand health services
beyond core aged care
Strategic Pillar 1
Grow Scale
Diversify Revenue
Develop RadPro as a fully
integrated operating
platform
Strategic Pillar 1
Grow Scale
RadPro
14FY25 Investor Presentation
ST ALLISA, CHRISTCHURCH
•109 bed care home, completing
on 30 May 2025.
•Property will be leased to Radius
Care on long term lease.
•Will deliver material EBITDA
growth in FY26.
Capacity Expansion
BELFAST, CHRISTCHURCH
•4.3Ha site in northern
Christchurch, to settle mid 2025.
•~80 villa retirement village to be
built in stages over five years.
•On-site 100 bed care home
planned in stage one and leased
to private investor.
LEASED NEW-BUILD CARE HOMES
•Capital-light expansion focused
on new-build 100 bed care homes
funded by private investors and
leased to Radius Care.
•First Heads of Agreement signed.
•Active discussions are
progressing with investors to
deliver sites from FY27.
15FY25 Investor Presentation
Revenue
Diversification
CIBUSCATERING
•51% of Cibus Catering Ltd acquired effective 1
October 2024.
•Provides full-service kitchen management for 2,300
aged care residents daily across 25 care homes,
including 10 Radius sites.
•Contributed $0.5m EBITDA in 2H25.
HOME SUPPORT
•Radius Care has recently been accredited as an
ACC home care provider.
•In addition to private high-acuity clients, the first
ACC-supported clients have been transitioned to
Radius Care.
16FY25 Investor Presentation
Why We Are
Different
Culture
Portfolio
Intellectual Property
We are not dependent on
the property market
No care suites
RadPro
The team at Radius Matamata Country Lodge celebrating with
Andrew during his recent record occupancy -95% Tour around NZ.
17FY25 Investor Presentation
Depreciation (=sustaining capex)
Investment required to maintain quality of existing
assets
= Surplus cash for allocation
Maintain financial resilience and flexibility
Medium term target: Net Bank Debt to EBITDA
1
Ratio
below 2.5x.
Owned property: 25%-50% of our total care home portfolio.
Invest in core operations
Maintain and improve quality of care offering by investing
in operating assets and technology base.
Distributions
Ordinary dividend pay-
out ratio of 40% to 70%
of AFFO (fully imputed).
Sustained dividend
growth.
Growth
Disciplined investment
in high return capacity
expansion capex.
Invest in capital-light
adjacent services.
Capital Management Framework
Dividend Policy
Underlying EBITDA
1
Bank interest and cash tax
Board approved Capital Management Framework and Dividend Policy, supporting a Capital-Light growth strategy.
Capital Management Framework
= AFFO
2
(Available Funds From
Operations)
—
Ordinary Dividend
(40% to 70% of AFFO)
—
Debt
repayment
Mergers,
Acquisitions;
Growth
Capex
Special
Dividends or
Share
Buybacks
1.Earnings before interest, tax, depreciation and amortisation. Underlying EBITDA is a non-GAAP (unaudited) financial measure.
2.Available Funds From Operations is a non-GAAP (unaudited) financial measure which is reconciled to GAAP measures included
within the Appendices of this Investor Presentation.
—
18FY25 Investor Presentation
Outlook
TRADINGUPDATE
•Occupancy strong –
94.4% for April.
•109 new beds
acquired –St Allisa.
OUTLOOK
•Radius Care expects key
financial metrics (Underlying
EBITDA, EBITDAR per bed
and AFFO) for the FY26 year
will exceed the comparative
period.
•FY26 will be further
boosted by a full year of
Cibus Catering earnings
and the addition of St
Allisa’s 109 beds to the
portfolio from 31 May 2025.
Radius Glaisdale -HamiltonRadius Glaisdale -Hamilton
19FY25 Investor Presentation
Appendices
Radius Taupaki Gables -Auckland
Radius Hampton Court -Napier
20FY25 Investor Presentation
The Radius Care growth pipeline offers unique exposure to a high-acuity, specialised care provider dedicated to delivering compassionate and
outstanding clinical care outcomes.
With an absolute focus on our core business, Radius Care consistently achieves industry leading metrics, including EBITDAR per bed.
Strong Portfolio for Changing Demographics
Demandunderpinnedbypopulation
demographics
1
Portfoliooriented to high acuity and specialist care
2
1.Source: Statistics New Zealand.
2.Source: Ministry of Health audit reports as disclosed on Ministry of Health website –https://www.health.govt.nz/your-health/certified-providers/aged-
care/based on data as at 30 April 2025.
A P P E N D I X 1
Average additional offerings
(Psychogeriatric, Physical, Intellectual, Dementia) per care home
1.0
0.8
0.7
0.4
0.3
RadiusRYMARVOCASUM
0.0%
2.0%
4.0%
6.0%
2003200820132018202320282033
Rolling 5
-
year pop CAGR
2008
85+ 5-yr CAGR
21FY25 Investor Presentation
At a Glance
1,789
CareBeds
1,900+
Employees
148
ILUs
National aged care focused portfolio with strong regional presence,
owning 12 and leasing 11 of the 23 sites nationwide
A P P E N D I X 2
ILUs are Independent Living Units
St Allisa
(Christchurch)
+109 care beds
from 31 May
22FY25 Investor Presentation
Key operational and financial metrics
Operating Metrics
FY25FY24FY23FY22
Number of Care Beds (period end)
1
1,7891,7891,8891,784
Average Care Bed Occupancy
2
92.8%91.8%91.8%92.5%
Underlying EBITDAR per Care Bed
3
(000s)$27.9$24.7$19.9$19.9
Accommodation Supplements Revenue
$10.8m$9.8m$7.9m$6.8m
Number of Units (period end)
4
148148148101
Number of new Unit sales---4
Number of existing Unit resales182888
Realised gains on resales (m)$1.5$1.8$0.8$0.4
Realiseddevelopment margins (m)---$0.1
Average resale price (000s)$427$391$464$389
Average new unit saleprice (000s)---$403
1.Comprises Care Beds occupied, available to be occupied or unavailable due to refurbishment.
2.Total occupied Care Bed days divided by total Care Bed days available during the year.
3.Pro forma Underlying EBITDAR for aged care divided by theaverage number of Care Beds
occupied during the year.
•30% over three years
•average resident tenure is 4.9 years
4.Comprises Units occupied, available to be occupied or
unavailable due to refurbishment.
5.Total revenue excludes Other income.
DMF terms for Retirement Village units
A P P E N D I X 3
Revenue Split
$m
FY25FY24FY23FY22
Aged Care
168.6166.0142.3130.6
Retirement Village
3.53.82.82.0
Group support & other
5.31.41.20.8
Total revenue
5
177.4171.2146.3133.4
23FY25 Investor Presentation
•Revenue +4% to $177.4m.
•Profit Before Tax +191% to
$10.5m.
•Net Profit After Tax +187% to
$7.4m.
Financials
Statement of
Comprehensive Income
A P P E N D I X 4
($000)FY25FY24
Revenue
Revenue175,286168,739
Deferred management fees2,1292,495
Total revenue177,415171,234
Change in fair value of investment property3,0882,703
Interest income148136
Total revenue and other income180,651174,073
Expenses
Employee costs(106,282)(105,744)
Depreciation expense(10,398)(9,942)
Finance costs(12,153)(15,637)
Other expenses(41,344)(39,151)
Total expenses(170,177)(170,474)
Profit before income tax10,4743,599
Income tax expense(3,075)(12,087)
Profit/(loss)for the year
7,399(8,488)
24FY25 Investor Presentation
($000)FY25FY24
Assets
Cash and cash equivalents2,5712,350
Trade and other receivables13,48515,002
Inventories579554
Investment properties77,12473,528
Property, plant and equipment118,214117,310
Right-of-use assets109,529109,906
Intangible assets18,06816,063
Total assets339,570334,713
Liabilities
Trade and other payables22,86019,990
Current tax liabilities2,4901,621
Interest rate swaps282-
Borrowings70,30175,869
Deferred management fees7,3577,608
Refundable occupation right agreements37,84337,425
Put option to purchase the non-controlling interest1,127-
Lease liabilities122,697121,086
Deferred tax liabilities8,1396,682
Total liabilities273,096270,281
Net assets66,47464,432
Equity
Share capital56,79456,820
Reserves8,2179,578
Retained earnings1,463(1,966)
Equity attributable to owners of the Group66,23364,432
Non-controlling interests241-
Total equity66,47464,432
Financials
Statement of
Financial Position
A P P E N D I X 5
25FY25 Investor Presentation
Financials
Statement of Cash Flows
($000)FY25FY24
Cash flows from operating activities
Receipts from residents for care fees and village fees176,188168,430
Payments to suppliers and employees(145,644)(147,285)
Proceeds from the sale of Refundable Occupation Right Agreements7,14010,938
Payments for the repurchase of Refundable Occupation Right Agreements(4,639)(4,072)
Interest received148136
Interest paid –borrowings(6,065)(9,388)
Interest paid –lease liabilities(5,934)(5,962)
Income tax (paid)/refunded(1,141)1,303
Net cash provided by operating activities
20,053
14,100
Cash flows from investing activities
Proceeds from the sale of care home-18,300
Proceeds from the sale of property, plant and equipment19989
Payment for acquisition of businesses(1,938)-
Cash acquired in business acquisition999-
Payments for the purchase of property, plant and equipment(5,843)(3,451)
Payments for village developments(508)(682)
Net cash provided by/(used in) investing activities
(7,271)
15,156
Cash flows from financing activities
Repurchase of shares(38)-
Proceeds from borrowings5,35018,500
Repayment of borrowings(11,095)(40,318)
Principal payments of lease liabilities(2,932)(2,709)
Dividends paid(3,846)-
Net cash provided by/(used in) financing activities(12,561)(24,527)
Reconciliation of cash and cash equivalents
Cash and cash equivalents at beginning of the year2,350(2,379)
Net (decrease)/increase in cash and cash equivalents held2214,729
Cash and cash equivalents at end of year
2,571
2,350
A P P E N D I X 6
26FY25 Investor Presentation
Financials
Underlying Earnings
and AFFO Calculation
A P P E N D I X 7
($000)FY25FY24
Net profit before income tax10,4743,599
Non Controlling interest(491)-
Net profit attributable to owners9,9833,599
Remove: Change in fair value of investment property(3,088)(2,703)
Include: Realised gains on resales1,4811,760
Remove: Depreciation expense10,3989,942
Remove: Interest Income(148)(136)
Remove: Interest Expense12,15315,637
Include: Pre-NZ IFRS 16 operating lease expense(8,865)(8,671)
EBITDA21,91319,428
Underlying adjustments1,5621,504
Underlying EBITDA23,47520,932
Net interest expense (bank and other loans)(6,219)(9,539)
Underlying tax (expense)/benefit(3,070)(1,340)
Depreciation on physical assets
1
(5,388)(2,610)
AFFO8,7987,443
1.FY24 is actual maintenance capex.
27FY25 Investor Presentation
Dividend
Policy
Board approved
dividend policy,
adopted from FY25 final
dividend.
A P P E N D I X
8
DividendsaredeclaredattheBoard’sdiscretion,
anddependonanumberoffactors,including
RadiusCare’sfinancialperformance,financial
position,marketconditions,futurefunding
requirementsandanycontractual,legalor
regulatoryrestrictionsonthepaymentofdividends
byRadiusCare.Thepaymentofdividendsisnot
guaranteedandRadiusCare’sdividendpolicy
maychangeovertime.Indeclaringdividends,
RadiusCaremustcomplywiththesolvencytest
undertheCompaniesActandcovenantsin
RadiusCare’sbankingfacilities.
Subjecttoanumberoffactorsincludingthose
outlinedabove,RadiusCare’sdividendpolicyisto
targetapay-outratioof40%to70%offullfinancial
yearAFFOwithaninterimdividendtobepaidin
DecemberandafinaldividendtobepaidinJune
ofeachyear.
Depreciation (=sustaining capex)
Investment required to maintain quality of existing
assets
= Surplus cash for allocation
Dividend Policy
Underlying EBITDA
1
Bank interest and cash tax
= AFFO
2
(Available Funds From
Operations)
—
Ordinary Dividend
(40% to 70% of AFFO)
—
Debt
repayment
Mergers,
Acquisitions;
Growth
Capex
Special
Dividends or
Share
Buybacks
—
1.Earnings before interest, tax, depreciation and amortisation. Underlying EBITDA is a non-GAAP (unaudited) financial measure.
2.Available Funds From Operations is a non-GAAP (unaudited) financial measure which is reconciled to GAAP measures included
within the Appendices of this Investor Presentation.
28FY25 Investor Presentation
Directoryof care homes
A P P E N D I X
9
OWNED
CARE HOMELOCATION
CARE
BEDS
UNITS
St HelenasChristchurch52-
Thornleigh ParkNew Plymouth87-
Lexham ParkKatikati63-
HeatherleaNew Plymouth55-
Taupaki GablesKumeu60-
Windsor CourtOhaupo76-
Elloughton GardensTimaru86-
Clare House Invercargill69-
Clare House VillageInvercargill-26
PeppertreePalmerston North62-
St JoansHamilton82-
Fulton HomeDunedin93-
Windsor Court VillageOhaupo-22
Elloughton Grange VillageTimaru-54
Matamata Country LodgeMatamata81-
Matamata Retirement VillageMatamata-46
Total owned866148
TOTAL
CARE HOMECARE BEDSUNITS
Leased923-
Owned 866148
TOTAL
1,789148
LEASED
CARE HOMELOCATIONCARE BEDS
KensingtonHamilton96
Potter HomeWhangarei55
Rimu ParkWhangarei55
WaipunaAuckland86
Hampton CourtNapier45
BaycareNorthland45
MatuaTauranga149
AlthorpTauranga119
Millstream
1
Ashburton80
Millstream Apartments
1
Ashburton19
GlaisdaleHamilton80
HawthorneChristchurch94
Total leased923
TO BE LEASED
(from 31 May 2025)
CARE HOMELOCATIONCARE BEDS
St AllisaChristchurch109
Total leased1,032
TOTAL
(from 31 May 2025)
CARE HOMECARE BEDSUNITS
Leased1,032-
Owned 866148
TOTAL
1,898148
•Average current lease term of 18.6
years.
•Average time to final expiry of 26.2
years.
29FY25 Investor Presentation
ImportantNotice
andDisclaimer
ThispresentationhasbeenpreparedbyRadiusResidentialCareLimited(“RadiusCare”),forinformationalpurposes.Thisdisclaimerappliesto
thisdocumentandtheverbalorwrittencommentsofanypersonpresentingit.
ThispresentationsetsoutinformationrelatingtoRadiusCare’sfullyearresultfortheperiodto31March2025.Assuch,itshouldbereadin
conjunctionwiththeauditedconsolidatedfinancialstatementsforRadiusCareanditssubsidiariesfortheperiodended31March2025
(“FinancialStatements”)andothermaterialthatRadiusCarehasreleasedtoNZXalongwiththispresentation.Thatmaterialisalsoavailableat
www.radiuscare.co.nz.
Incertainsectionsofthispresentation,RadiusCarehaschosentopresentcertainfinancialinformationexclusiveoftheimpactofsignificant
items.Anumberofnon-GAAPfinancialmeasuresareusedinthispresentationwhichareusedbymanagementtoassesstheperformanceof
thebusinessandhavebeenderivedfromtheFinancialStatements.Youshouldnotconsideranyofthesefinancialmeasuresinisolationfrom,or
asasubstitutefortheinformationprovidedintheFinancialStatements.
Thispresentationmaycontainforward-lookingstatementsandprojections.Suchforward-lookingstatementsarebasedoncurrentexpectations,
estimatesandassumptionsandaresubjecttoanumberofrisksanduncertainties,includingmaterialadverseevents,significantone-off
expensesandotherunforeseeablecircumstances.Thereisnoassurancethatresultscontemplatedinanyoftheseprojectionsandforward-
lookingstatementswillberealised.Actualresultsmaydiffermateriallyfromthoseprojected.Exceptasrequiredbylaw,ortheNZXListingRules,
nopersonisunderanyobligationtoupdatethispresentationatanytimeafteritsreleaseortoprovidefurtherinformationaboutRadiusCare.
TheinformationinthispresentationhasbeenpreparedingoodfaithbyRadiusCare.NeitherRadiusCarenoranyofitsdirectors,employees,
shareholdersnoranyotherpersongiveanyrepresentationsorwarranties(eitherexpressorimplied)astotheaccuracyorcompletenessofthe
informationinthispresentationandtothemaximumextentpermittedbylaw,nosuchpersonshallhaveanyliabilitywhatsoevertoanyperson
foranyloss(including,withoutlimitation,arisingfromanyfaultornegligence)arisingfromthispresentationoranyinformationsuppliedin
connectionwithit.
Thispresentationisnotaproductdisclosurestatementorotherdisclosuredocument,oranofferofsharesforsubscription,orsale,inany
jurisdiction.Theinformationinthispresentationdoesnotconstitutefinancialproduct,legal,financial,investment,taxoranyotheradviceora
recommendation.
30FY25 Investor Presentation
Thank You
Radius Glaisdale -Hamilton
---
Financial
Statements
2025
2
RADIUS CARE FINANCIAL STATEMENTS 2025
CONSOLIDATED
Statement of Comprehensive Income
For the year ended
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
REVENUE
Revenue2.1175,286168,739
Deferred management fees2.12,1292,495
Total revenue177,415171,234
Change in fair value of investment property3.13,0882,703
Interest income148136
Total revenue and other income180,651174,073
EXPENSES
Employee costs(106,282)(105,744)
Depreciation expense2.2(10,398)(9,942)
Finance costs2.2(12,153)(15,637)
Other expenses2.2(41,344)(39,151)
Total expenses(170,177)(170,474)
Profit before income tax 10,4743,599
Income tax expense5.1(3,075)(12,087)
Profit/(loss) for the year7,399(8,488)
OTHER COMPREHENSIVE INCOME FOR THE YEAR
Items that will be reclassified subsequently to profit and loss
Fair value loss on hedged interest rate swaps4.4(282) —
Other comprehensive income for the year(282) —
Total comprehensive income/(loss)7,117(8,488)
PROFIT/(LOSS) ATTRIBUTABLE TO
Owners of the company7,0 3 4 (8,488)
Non-controlling interests365 —
Total profit/(loss)7,399(8,488)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO
Owners of the company6,752 (8,488)
Non-controlling interests365 —
Total comprehensive income/(loss) 7,117(8,488)
EARNINGS PER SHARE
Basic and diluted earnings/(loss) per share (cents per share)4.22.60(2.98)
The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
3
RADIUS CARE FINANCIAL STATEMENTS 2025
CONSOLIDATED
Statement of Changes in Equity
For the year ended 31 March
2025
In thousands of New Zealand
dollars
NOTE
Contributed
Equity
Other
Reserves
Retained
Earnings Total
Non-
Controlling
InterestTotal Equity
BALANCE AS AT 1 APRIL 2024 56,820 9,578 (1,966) 64,432 — 64,432
Profit/(Loss) for the year — — 7,0 3 4 7,0 3 4 365 7,399
Cash flow hedges — effective
portion of changes in fair value
4.4 — (282) — (282) —(282)
Total comprehensive income for
the year
— (282) 7,0 3 4 6,752 365 7,117
Transactions with owners
Share buyback4.1(38) — — (38)—(38)
Share based payments4.112 48 — 60 — 60
Dividends paid4.1 — — (3,846)(3,846)—(3,846)
Total transactions with owners(26)48 (3,846)(3,824) —(3,824)
Other changes in equity
Acquisition of subsidiary with a
NCI1 interest
5.6————(124)(124)
Put option to purchase the NCI’s
of a subsidiary
4.1,
5.6
—(1,127)—(1,127)—(1,127)
Total other changes in equity —(1,127)—(1,127)(124)(1,251)
BALANCE AS AT 31 MARCH 202556,7948,2171,22266,23324166,474
BALANCE AS AT 1 APRIL 2023 56,813 9,529 6,522 72,864 — 72,864
Profit/(Loss) for the year — — (8,488)(8,488)—(8,488)
Other comprehensive income
for the year
— — — — — —
Total comprehensive income for
the year
— — (8,488) (8,488) —(8,488)
Transactions with owners
Share based payments 7 49 — 55 — 55
Dividends paid4.1 — — — — — —
Total transactions with owners 7 49 — 55 — 55
BALANCE AS AT 31 MARCH
2024
56,820 9,578(1,966) 64,432 — 64,432
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
1. Non-controlling interest
4
RADIUS CARE FINANCIAL STATEMENTS 2025
CONSOLIDATED
Statement of Financial Position
The Board of Directors of the Company authorised these consolidated financial statements for issue on 21 May 2025.
For and on behalf of the Board.
Brien Cree
Chair, Board of Directors
Hamish Stevens
Chair, Audit and Risk Committee
As at
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
ASSETS
Cash and cash equivalents2,5712,350
Trade and other receivables5.313,48515,002
Inventories579554
Investment properties3.177,12473,528
Property, plant and equipment3.2118,214117,310
Right-of-use assets3.4109,529109,906
Intangible assets5.218,06816,063
Total assets 339,570 334,713
LIABILITIES
Trade and other payables5.422,86019,990
Current tax liabilities2,4901,621
Interest rate swaps4.4282—
Borrowings4.370,30175,869
Deferred management fees3.37, 3 577,608
Refundable occupation right agreements3.337,84337,425
Put option to purchase the non-controlling interest5.61,127—
Lease liabilities3.4122,697121,086
Deferred tax liabilities5.18,1396,682
Total liabilities 273,096 270,281
NET ASSETS66,47464,432
EQUITY
Share capital4.156,79456,820
Reserves 4.18,2179,578
Retained earnings1,463(1,966)
COMPRISING OF
Equity attributable to owners of the Group 66,233 64,432
Non-controlling interests5.7241 —
Total equity66,47464,432
The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
5
RADIUS CARE FINANCIAL STATEMENTS 2025
CONSOLIDATED
Statement of Cash Flows
For the year ended
In thousands of New Zealand dollars
31 March 2025 31 March 2024
Receipts from residents for care fees and village fees176,188168,430
Payments to suppliers and employees(145,644)(147,285)
Proceeds from the sale of Refundable Occupation Right
Agreements
7,14010,938
Payments for the repurchase of Refundable Occupation Right
Agreements
(4,639)(4,072)
Interest received148136
Interest paid - borrowings(6,065)(9,388)
Interest paid - lease liabilities(5,934)(5,962)
Income tax (paid)/refunded(1,141)1,303
Net cash provided by operating activities 20,05314,100
Proceeds from the sale of care home—18,300
Proceeds from the sale of property, plant and equipment19989
Payment for acquisition of businesses5.6(1,938)—
Cash acquired in business acquisition5.6999—
Payments for the purchase of property, plant and equipment(5,843)(3,451)
Payments for village developments(508)(682)
Net cash provided by/(used in) investing activities(7,271)15,156
Repurchase of shares4.1(38)—
Proceeds from borrowings 5,35018,500
Repayments of borrowings(11,095)(40,318)
Principal payments of lease liabilities(2,932)(2,709)
Dividends paid4.1(3,846)—
Net cash provided by/(used in) financing activities(12,561)(24,527)
Cash and cash equivalents at beginning of the year2,350(2,379)
Net (decrease)/increase in cash and cash equivalents held2214,729
Cash and cash equivalents at end of year2,5712,350
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
6
RADIUS CARE FINANCIAL STATEMENTS 2025
For the year ended
In thousands of New Zealand dollars
31 March 2025 31 March 2024
RECONCILIATION OF PROFIT FOR THE YEAR TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Profit/(Loss) for the year7,399(8,488)
ADJUSTMENTS FOR NON-CASH ITEMS
Depreciation and amortisation10,3989,942
Share based payments6055
Net loss/(gain) on disposal of property, plant and equipment—227
Fair value adjustment to investment properties(3,088)(2,703)
Movement in deferred tax1,43810,452
Goodwill on business acquisition(253)—
CHANGES IN OPERATING ASSETS AND LIABILITIES
Trade and other receivables and other assets856(1,970)
Inventories71201
Trade and other payables and other liabilities2,005125
Current tax liabilities7492,938
Refundable Occupation Right Agreements4183,321
Net cash provided by operating activities 20,05314,100
CONSOLIDATED
Statement of Cash Flows (continued)
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
In thousands of New Zealand dollarsBorrowings
Lease
Liabilities
Total
BALANCE AS AT 1 APRIL 202475,869121,086196,955
Proceeds from borrowings5,350—5,350
Repayment of borrowings and lease liabilities(11,095)(2,932)(14,027)
Loan acquired in business acquisition177—177
Total changes from financing cash flows(5,568)(2,932)(8,500)
Non-cash changes
Remeasurements—4,5434,543
Balance as at 31 March 202570,301122,697192,998
BALANCE AS AT 1 APRIL 202397,687121,530219,217
Proceeds from borrowings18,500— 18,500
Repayment of borrowings and lease liabilities(40,318)(2,709)(43,027)
Total changes from financing cash flows(21,818)(2,709)(24,527)
Non-cash changes
Remeasurements— 2,2652,265
Balance as at 31 March 202475,869121,086196,955
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Changes in the carrying amount of such liabilities, which comprise bank borrowings and lease liabilities, are
summarised below.
7
RADIUS CARE FINANCIAL STATEMENTS 2025
Notes
1. GENERAL INFORMATION
1.1. Basis of Preparation
Reporting Entity
The consolidated financial statements are for Radius Residential
Care Limited (‘the Company’) and its subsidiaries (together
‘the Group’).
The Group provides rest home and hospital care for elderly along
with development and operation of integrated retirement villages in
New Zealand.
Statutory Basis and Statement of Compliance
Radius Residential Care Limited is a limited liability company,
incorporated and domiciled in New Zealand. It is registered under
the Companies Act 1993 and is a FMC Reporting Entity in terms of
Part 7 of the Financial Markets Conduct Act 2013. The Company
is listed on the NZX Main Board (“NZX”). The consolidated
financial statements have been prepared in accordance with the
requirements of the NZX, and Part 7 of the Financial Markets
Conduct Act 2013.
These consolidated financial statements have been prepared
in accordance with Generally Accepted Accounting Practice
in New Zealand (‘NZ GAAP’). They comply with New Zealand
equivalents to International Financial Reporting Standards (‘NZ
IFRS’), International Financial Reporting Standards (‘IFRS’) and
other applicable New Zealand Financial Reporting Standards, as
appropriate for for-profit entities. The Group is a Tier 1 for-profit
entity in accordance with XRB A1 Application of the Accounting
Standards Framework.
The consolidated financial statements have been prepared on a
going concern basis, which contemplates continuity of normal
business activities and the realisation of assets and the settlement
of liabilities in the ordinary course of business.
The balance sheet for the Group is presented on the liquidity
basis where the assets and liabilities are presented in the order of
their liquidity.
Functional and Presentation Currency
The consolidated financial statements are presented in New Zealand
dollars which is the Group’s functional and presentation currency.
All amounts have been rounded to the nearest thousand, unless
otherwise indicated.
Measurement Basis
These consolidated financial statements have been prepared under
the historical cost convention, with the exception of investment
properties (note 3.1) and land and buildings included within
property, plant and equipment (note 3.2).
Key Estimates and Judgements
The Board of Directors and Management are required to make
judgements, estimates and assumptions in applying the accounting
policies. The assumptions, estimates and judgements applied
are based on experience and relevant information the Board and
Management believe are reasonable. Actual results may
differ from the estimates, judgements and assumptions
made by the Board of Directors and Management.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and in any future periods affected.
The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements
are described in the following notes:
• Valuation of investment properties (note 3.1)
• Valuation of land and buildings (note 3.2)
• Impairment testing of right-of-use assets (note 3.4)
• Recognition of deferred tax assets and liabilities
(note 5.1)
• Impairment testing of goodwill (note 5.2)
• Business combinations (note 5.6)
New and Amended Accounting Standards and
Interpretations
All mandatory new and amended standards and
interpretations have been adopted in the current year.
The new and amended standards and interpretations that
have had an impact on the Group have been described
below. The Group has not early adopted any new
standards, amendments or interpretations to existing
standards that are not yet effective.
Classification of Liabilities as Current or Non Current and
Non Current Liabilities with Covenants
The Group has adopted Classification of Liabilities as
Current or Non Current (Amendments to IAS 1) and Non
current liabilities with Covenants (amendments to IAS 1)
from 1 April 2024. The amendments apply retrospectively
and clarify certain requirements for determining whether
a liability should be classified as current or non current
and require new disclosures for non current loan liabilities
that are subject to covenants within 12 months after
reporting date.
The Group has adopted this new amendment for the
financial reporting period beginning 1 April 2024.
The adoption of this new standard did not have a
financial impact on the Group’s financial statements
or the accounting estimates disclosed in the Group’s
financial statements with the exception of minor
disclosure amendments.
None of the other new and amendments to standards
and interpretations are expected to have a material
impact on the Group.
8
RADIUS CARE FINANCIAL STATEMENTS 2025
Accounting Standards Issued But Not Yet Effective
IFRS 18 Presentation and Disclosure in Financial Statements
(IFRS 18) will replace IAS 1 Presentation of Financial Statements
and applies for annual reporting periods beginning on or after 1
April 2027. The new standard introduces the following key new
requirements:
• Entities are required to classify all income and expenses into five
categories in the statement of profit or loss, namely the operating,
investing, financing, discontinued operations and income tax
categories. Entities are also required to present a newly-defined
operating profit subtotal. Entities’ net profit will not change.
• Management-defined performance measures (MPMs) are
disclosed in a single note in the financial statements.
• Enhanced guidance is provided on how to group information in
the financial statements.
In addition, all entities are required to use the operating profit
subtotal as the starting point for the statement of cash flows when
presenting operating cash flows under the indirect method. The
Group is still in the process of assessing the impact of the new
standard, particularly with respect to the structure of the Group’s
statement of profit or loss, the statement of cash flows and the
additional disclosures required for MPMs.
The Group is also assessing the impact on how information is
grouped in the financial statements, including for items currently
labelled as ‘other’.
There are a number of other new and amended accounting
standards issued but not yet effective. These are not expected
to have a significant impact on the Group’s consolidated
financial statements.
Segment Reporting
An operating segment is a component of an entity that engages
in business activities which earn revenue and incur expenses
and where the chief operating decision maker reviews the
operating results on a regular basis and makes decisions on
resource allocation.
The Group operates in one operating segment being the provision
of aged care in New Zealand. The chief operating decision maker,
the Board of Directors, reviews the operating results on a regular
basis and makes decisions on resource allocation based on the
review of Group results and cash flows as a whole. The nature of the
services provided and the type and class of residents have similar
characteristics within the operating segment. The Ministry of Health
is a significant customer of the Group as disclosed in note 2.1, as the
Group derives care fee revenue in respect of eligible Government
subsidised aged care residents. No other customers individually
contribute a significant proportion of the Group’s revenue. All
revenue earned and assets held are in New Zealand.
1.2. Accounting Policies
Material accounting policies which are relevant to understanding
the consolidated financial statements are disclosed in each of
the applicable notes. They have been applied on a consistent
basis across all periods presented in these consolidated
financial statements.
Measurement of Fair Value
For financial reporting purposes, ‘fair value’ is the
price that would be received to sell an asset, or paid
to transfer a liability, in an orderly transaction between
market participants (under current market conditions)
at the measurement date, regardless of whether that
price is directly observable or estimated using another
valuation technique.
When estimating the fair value of an asset or liability, the
Group uses valuation techniques that are appropriate
in the circumstances and for which sufficient data is
available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of
unobservable inputs. Inputs to valuation techniques
used to measure fair value are categorised into three
levels according to the extent to which the inputs are
observable:
• Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity
can access at the measurement date.
• Level 2 inputs are inputs other than quoted prices
included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset
or liability.
Further information about the assumptions made in
measuring fair values is included in notes 3.1, 3.2, 4.1 and
5.6 and 5.7.
1.3. Climate Change Risk
As an aged care and retirement village operator, the
Group recognises that climate change poses potential
risks to its operations and financial performance. The
Group operates 23 residential care facilities and homes
(12 owned and 11 leased) and four retirement villages
across New Zealand. The Group acknowledges that
extreme weather events, such as flooding and storms,
can occur and could impact the value and condition
of its owned and leased properties. The Group has
appropriate material damage and business interruption
insurance coverage in place to mitigate potential risks.
Additionally, the effects of climate change, including
rising temperatures and increased precipitation, may
lead to changes in zoning regulations or building codes,
potentially affecting the Group’s ability to develop or
renovate its properties.
The Group is also aware of the potential for climate
change to impact its supply chain and increase
the costs of essential goods and services, such as
medical supplies, food, and energy, which could have
an adverse effect on its financial performance. The
Group is proactively identifying and managing these
risks by monitoring climate-related developments and
assessing their potential impacts on its operations and
financial performance.
Furthermore, the Group recognises the potential impact
of climate change on its assets, including goodwill,
9
RADIUS CARE FINANCIAL STATEMENTS 2025
property, plant and equipment, investment properties, and right-
of-use assets. Climate-related factors, such as changes in market
conditions or regulatory requirements, could result in impairment
charges or adjustments to the carrying amount of these assets.
The Group is in the process of implementing measures to increase
energy efficiency, reduce its carbon footprint, and contribute
to a more sustainable future. It is identifying the sources of its
greenhouse gas emissions and is taking steps to reduce them.
However, the Group acknowledges that complete mitigation of
these risks cannot be guaranteed, and failure to do so could have a
material adverse effect on its financial performance.
The Group remains committed to monitoring and reporting on
climate-related risks and opportunities in its financial statements
and other public disclosures. The Company acknowledges that
climate change is an ongoing and evolving issue and will continue
to take appropriate steps to identify and manage potential impacts
on its operations, financial performance, and financial assets.
1.4. Market Capitalisation
At balance date the market capitalisation of the Group
(being the 31 March 2025 closing share price, as quoted
on the NZX Main Board, multiplied by the number of
shares on issue) was below the carrying amount of the
Group’s net assets and shareholders’ funds. The Group
has undertaken an assessment of the recoverable
amount of its assets/CGUs. Management believes that
no reasonably possible changes in any of the above
key assumptions would cause the carrying value of the
non-financial assets to be materially lower than their
recoverable amount.
As at the date of the signing of these consolidated
financial statements, the market capitalisation of the
Group was above the carrying amount of the Group’s net
assets and shareholders’ funds.
10
RADIUS CARE FINANCIAL STATEMENTS 2025
2. OPERATING PERFORMANCE
2.1. Revenue
Revenue from Contracts with Customers
Revenue from care and village fees and recoveries income is recognised in accordance with NZ IFRS 15 Revenue from
Contracts with Customers ("NZ IFRS 15"). Deferred management fees and rental income are considered leases under NZ IFRS
16 Leases ("NZ IFRS 16"), and are therefore excluded from the scope of NZ IFRS 15.
Care and Village Fees and Recoveries Income
The Group derives revenue from the provision of residential care and related services. Rest home, hospital and service fee
charges (including accommodation supplements) are governed by the individual care admission agreement with each care
resident. The resident incurs a daily care fee charged per the agreement, as set by the Government each year. Care fees are
recognised net of any rebates to residents.
The Group derives care fee revenue in respect of eligible Government subsidised aged care residents who receive rest home,
dementia or hospital level care. Government aged care subsidies received from Health New Zealand included in care fees and village
services amounted to $104.8m (2024: $101.7m).
There are no elements of variable consideration of significant financing component associated with care and village fees and
recoveries income.
Village fees are detailed within each resident's Occupation Right Agreements (ORAs) and relate to the operating costs of the village.
Revenue is recognised based on the daily or weekly fees charged, reflecting the period a resident has occupied a unit.
The performance obligation of providing the care and village services is satisfied over time, as the resident simultaneously receives
and consumes the benefits of the service as it is provided. Billing and revenue recognition are generally done during the same period
that the performance obligation is satisfied. Payments received in advance are recorded on the statement of financial position as a
contract liability and subsequently recognised through profit or loss when the services are rendered.
For the year ended
In thousands of New Zealand dollars
31 March 202531 March 2024
Rest home, hospital and dementia fees 142,288 142,209
Accommodation Supplements 10,850 9,795
Village service fees 1,215 1,173
Rental income 118 165
Catering revenue3,503—
Other services provided to residents 17,312 15,397
175,286 168,739
Lease Income
Deferred Management Fees
Occupation Right Agreements (ORAs) confer the right to occupy a retirement unit and are considered leases under
NZ IFRS 16 Leases.
A management fee is payable by the residents of the Group’s independent living units for the right to share in the use and enjoyment
of common facilities. The management fee is calculated as a percentage of the ORA amount and accrues either daily, monthly or
annually for a set period, based on the terms of the individual contracts. The current ORAs accrue management fees at rates ranging
from 6.67% to 10% per annum.
The management fee is payable in cash by the resident at the time of repayment (to the resident) of the refundable ORA amount
due. The Group has the right to set off of the refundable occupation right agreement amount and the management fee receivable.
At year end, the management fee receivable that has yet to be recognised through profit or loss as management fee revenue is
recognised as a deferred management fee liability in the statement of financial position.
Key Accounting Estimates and Judgements
The deferred management fee represents the difference between the management fees receivable under the ORA and the portion
of the management fee accrued which is recognised on a straight-line basis over the longer of the term specified in a resident’s ORA
or the average expected occupancy for the relevant accommodation i.e. eight years for villas and three to four years for serviced
apartments and villas (2024: Eight years for villas and three to four years for serviced apartments).
11
RADIUS CARE FINANCIAL STATEMENTS 2025
2.2. Expenses
For the year ended
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
Buildings3.21,3441,424
Motor vehicles3.2158115
Furniture, fixtures and fittings3.22,9102,704
Information technology3.2714718
Medical equipment3.2262159
AMORTISATION OF INTANGIBLE ASSETS
Customer relationships5.2
90—
5,4785,120
DEPRECIATION OF RIGHT-OF-USE ASSETS
Land and buildings3.4
4,9204,822
4,9204,822
Total depreciation 10,3989,942
FINANCE COSTS
Interest — bank and vendor financing6,2199,675
Interest — lease liabilities3.45,9345,962
Total finance costs12,15315,637
OTHER EXPENSES
Fees paid to Auditors
Audit of consolidated financial statements
1
236296
Tax compliance services2830
Agreed upon procedures engagement
2
10—
Total fees paid to auditor274326
Care home operating expenses
26,06527,885
Operating rental expenses relating to low value and short-term leases3741
Directors' fees981579
Donations and sponsorships2512
Loss/(gain) on sale of property, plant and equipment(4)243
Other expenses (no items of individual significance)13,96610,065
Total other expenses41,34439,151
1. The comparative 2024 year included a review engagement over the consolidated interim financial statements.
2. The 2025 year includes an agreed upon procedures engagement which was performed over the consolidated interim financial statements.
12
RADIUS CARE FINANCIAL STATEMENTS 2025
3. PROPERTY ASSETS
3.1. Investment Properties
Accounting Policy
Investment properties include completed freehold land and buildings, freehold land and buildings under development comprising
retirement villages including common facilities, provided for use by residents under the terms of a Refundable Occupation Right
Agreements (ORA). Investment properties are held for long term yields and to generate rental income.
Investment properties are initially recognised at cost. After initial recognition, investment properties are measured at fair value.
Gains or losses arising from a change in the fair value of investment properties are recognised in profit or loss.
Deferred management fees, are accounted for as described in note 2.1.
As at
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
INVESTMENT PROPERTIES
Opening carrying amount73,52870,143
Net fair value gain3,0882,703
Occupation Right Agreements settled(6,659)(9,158)
Occupation Right Agreements entered6,6599,158
Purchases508682
Closing carrying amount77,12473,528
A reconciliation between the valuation and the amount recognised on the Consolidated Statement of Financial Position as
investment properties is as follows:
Valuation of operator's interest 28,850 25,500
Refundable Occupation Right Agreements3.337,84337,425
Deferred management fees3.37, 3 577,608
Unsold/vacant units1,100750
Residential properties
1,9742,245
77,12473,528
Valuation Process and Key Inputs
The Group’s investment properties are valued on an annual basis. This year the valuations were undertaken by LVC Limited
(LVC), an independent valuer. LVC are registered with the Property Institute of New Zealand, employs registered valuers and has
appropriate recognised professional qualifications and recent experience in the location and category of properties being valued.
The valuation of investment property are adjusted for balances relating to refundable ORA payments and management fees
receivable recognised separately on the Consolidated Balance Sheet and also reflected in the valuation model.
Unsold Units
Any developed but not yet sold units (unsold units) are valued based on recent comparable transactions, adjusted for disposal
costs, holding costs and an allowance for profit and risk. This represents the fair value of the Group’s interest in unsold units at
reporting date.
Key Accounting Estimates and Judgements
As the fair value of investment properties is determined using inputs that are significant and unobservable, the Group has
categorised investment properties as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 Fair Value Measurement.
13
RADIUS CARE FINANCIAL STATEMENTS 2025
Valuation Uncertainty
As at 31 March 2025
The Group’s four investment properties were revalued on 31 March 2025 and did not include a valuation uncertainty clause in their
valuation report.
As at 31 March 2024
Refer to the published consolidated financial statements for the years ended 31 March 2024 for further information on prior year
valuation uncertainty.
Significant Unobservable Inputs
The significant unobservable inputs used in the fair value measurement of the Group’s portfolio of completed investment properties
are the discount rate and the property growth rate.
The following assumptions have been used to determine fair value:
Significant InputDescription
Inter-relationship Between the Key
Inputs and Fair Value Measurement
20252024
Discount
rate
Villas and
serviced
apartments
The pre-tax
discount rate
A significant increase/(decrease)
in the discount rate would result
in a significantly (lower)/higher
fair value measurement.
15.5% -
19.0%
15.5% -
19.0%
Property price growth rate
Villas and
serviced
apartments
Anticipated
annual property
price growth over
the cash flow
period 0 - 4 years
A significant increase/
(decrease) in the property price
growth rate would result in a
significantly higher/(lower) fair
value measurement.
0.5% - 2.5%0% - 2.5%
Villas
Anticipated
annual property
price growth over
the cash flow
period 5+ years
A significant increase/
(decrease) in the property price
growth rate would result in a
significantly higher/(lower) fair
value measurement.
2.50%
2.25% -
2.50%
Serviced
apartments
2.50%2.25%
Sensitivities
Adopted Value of
Operator’s Interest
Discount RateProperty Growth Rates
AS AT 31 MARCH 2025
+0.5%-0.5%+0.25%-0.25%
Valuation $NZ000's28,850
Difference $NZ000's(950)9001,050(1,250)
Difference %(3.3%)3.1%3.6%(4.3%)
AS AT 31 MARCH 2024
+0.5%-0.5%+0.25%-0.25%
Valuation $NZ000's25,500
Difference $NZ000's(800)8501,150(1,000)
Difference %(3.1%)3.3%4.5%(3.9%)
The occupancy period is a significant component of the valuations. LVC consider the demographic profile of the village (age
and gender of residents) and the average occupancy period depending on the type of unit and averages within the industry.
Subsequent changes in residents are then calculated based on the period of occupancy expected for each resident as at the date of
the valuation. An increase in the stabilised departing occupancy period will have a negative impact on the valuation and a decrease
in the stabilised departing occupancy will have a positive impact on the valuation. The valuation calculates the expected cash flows
with stabilised departing occupancy assumptions set out below.
14
RADIUS CARE FINANCIAL STATEMENTS 2025
Significant Input
As at31 March 2025 31 March 2024
Stabilised occupancy period — villas8.0 yrs - 9.0 yrs8.0 yrs - 9.0 yrs
Stabilised occupancy period — serviced apartments3-4 yrs4 yrs
Current ingoing price, for subsequent resales of ORA’s, is a key driver of the LVC valuations. A significant increase/(decrease) in the
ingoing price (as driven by the property growth rates) would result in a significantly higher/(lower) fair value measurement.
3.2. Property, Plant and Equipment
Accounting Policy
Freehold land and buildings are measured at revalued amounts, less any subsequent accumulated depreciation and any
accumulated impairment losses. All other property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses. At each reporting date the carrying amount of each asset is reviewed to ensure that it does not differ materially
from the asset’s fair value at reporting date. Where necessary, independent valuations are performed and the asset is revalued to
reflect its fair value.
CategoryUseful Life Range
Buildings50 years
Motor vehicles5 years
Furniture, fixtures and fittings5 - 10 years
Information technology4 years
Medical equipment 7 years
Assets are assessed for impairment whenever events or circumstances arise that indicate the asset may be impaired. An asset’s
carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated
recoverable amount. Impairment losses in respect of individual assets are recognised immediately in profit or loss unless the asset
is measured at a revalued amount, in which case the impairment loss is treated as a revaluation decrease and is recognised in other
comprehensive income to the extent that it does not exceed the amount in the revaluation surplus for the same asset.
Gains and losses on disposals are determined by comparing the net disposal proceeds with the carrying amount of the asset. These
are included in the profit or loss.
15
RADIUS CARE FINANCIAL STATEMENTS 2025
Carrying Value of Assets at Historical Cost
The carrying amount at which both land and buildings would have been carried had the assets been measured under historical costs
is as follows:
As at
In thousands of New Zealand dollars
31 March
2025
31 March
2024
Land and buildings 91,322 91,322
Accumulated Depreciation (3,972) (2,785)
Total 87,350 88,537
Reconciliation of Carrying Amount
In thousands of
New Zealand dollars
Land and
Buildings
Motor
Vehicles
Furniture,
Fixtures and
Fittings
Information
Technology
Medical
Equipment
Work in
ProgressTotal
YEAR ENDED 31 MARCH 2025
Opening net book value97,64634710,7991,1237186,677117,310
Additions—803,4625126011,1805,835
Business combination—167309———476
Reclassification(286)—286————
Transfers——148517—(665)—
Disposals——(10)(9)——(19)
Depreciation(1,344)(158)(2,910)(714)(262)—(5,388)
Closing net book value 96,016 436 12,084 1,429 1,057 7,1 92 118,214
AS AT 31 MARCH 2025
Cost98,6911,80242,9217,5772,0577,1 9 2160,240
Accumulated Depreciation(2,675)(1,366)(30,837)(6,148)(1,000)—(42,026)
Net book value96,01643612,0841,4291,0577,1 9 2118,214
In thousands of
New Zealand dollars
Land and
Buildings
Motor
Vehicles
Furniture,
Fixtures and
Fittings
Information
Technology
Medical
Equipment
Work in
ProgressTotal
YEAR ENDED 31 MARCH 2024
Opening net book value112,51035612,8061,7464506,002133,870
Additions—1131,8182024528683,453
Revaluation———————
Transfers168—25——(193)—
Disposals
1
(13,608)(7)(1,146)(107)(25)—(14,893)
Depreciation(1,424)(115)(2,704)(718)(159)—(5,120)
Closing net book value97,646 347 10,799 1,123 718 6,677 117,310
AS AT 31 MARCH 2024
Cost99,0041,47938,3066,5851,4566,677153,507
Accumulated Depreciation(1,358)(1,132)(27,507)(5,462)(738)—(36,197)
Net book value97,64634710,7991,1237186,677117,310
1. On 16 January 2024, the Group disposed of one property for consideration of $19m. The funds from the transaction were subsequently used to repay bank borrowings.
16
RADIUS CARE FINANCIAL STATEMENTS 2025
Valuations
The Group’s twelve properties included in land and buildings were
revalued on 31 March 2023. Management assessed that these
freehold land and buildings have not experienced any significant
and volatile changes in fair value necessitating a revaluation as at
31 March 2025 or 31 March 2024. This assessment was informed
by advice provided by the Group’s land and buildings Valuer, LVC
Limited (LVC) (who provides valuation services to the Group) who
provided a valuation update report confirming that the carrying
amounts of these freehold land and buildings did not differ
materially from that which would be determined using fair value as
at 31 March 2023.
The comparison was made against the carrying amounts
subsequent to depreciation of the buildings component for
the financial years ended 31 March 2024 and 31 March 2025, in
accordance with the Group’s depreciation policy.
Valuation Uncertainty
As at 31 March 2025
As at 31 March 2025, the valuer of all twelve properties
has not included a valuation uncertainty clause in their
desktop valuation report.
As at 31 March 2024 and 31 March 2023
Refer to the published consolidated financial statements
for the years ended 31 March 2024 and 31 March 2023 for
information on prior year valuation uncertainty.
Key Accounting Estimates and Judgements
Property measurements are categorised as Level 3
(2024: Level 3) of the fair value measurement hierarchy
as the fair value is determined using inputs that
are unobservable.
Significant Unobservable Inputs
The significant unobservable input used in the fair value measurement of the Group’s land and buildings is the capitalisation
rate applied to rentals. A significant decrease/(increase) in the capitalisation rate would result in significantly higher/(lower) fair
value measurement.
Sensitivities
As at 31 March 2023Adopted Value Capitalisation Rate
Valuation $NZ000's112,510
+0.5%-0.5%
Difference $NZ000's(7,900)9,200
Difference %(7.1%)8.2%
17
RADIUS CARE FINANCIAL STATEMENTS 2025
3.3. Refundable Occupation Right Agreements
Accounting Policy
Occupation Right Agreements (ORAs) confer the right to occupy a retirement unit and are considered leases under
NZ IFRS 16 Leases.
A new resident is charged a refundable security deposit, on being issued the right to occupy one of the Group’s units, which is
refunded to the resident subject to a new ORA for the unit being issued to an incoming resident, net of any amount owing to the
Group. The Group has a legal right to set off any amounts owing to the Group by a resident against that resident’s security deposit.
Such amounts include management fees, rest home and hospital fees, service fees and village fees. As the refundable occupation
right is repayable to the resident upon vacating the unit (subject to a new ORA for the unit being issued to an incoming resident),
the fair value is equal to the face value, being the amount that can be refunded.
The right of residents to occupy the investment properties of the Group is protected by the Statutory Supervisor restricting the
ability of the Group to fully control these assets without undergoing a consultation process with all affected parties.
A resident is charged a village contribution fee in consideration for the right to occupy one of the Group’s units to a maximum of
30% of the entry payment.
Some residents may be charged an administration fee for the right to occupy one of the Group’s units of between 3.45% and 4.0%
of the entry payment.
The village contribution is payable by the resident on termination of the ORA. Village contribution is recognised as deferred
management fees, note 2.1. The management fee receivable is recognised in accordance with the terms of the resident’s ORA.
The deferred management fee represents the difference between the management fees receivable under the ORA and the portion
of the management fee accrued which is recognised on a straight-line basis over the longer of the term specified in a resident’s
ORA or the average expected occupancy for the relevant accommodation i.e. eight years for villas and three to four years for
serviced apartments (2024: Eight years for villas and three to four years for serviced apartments).
The management fee recognised in the Consolidated Statement of Comprehensive Income represents income earned in line with
the average expected occupancy.
As a refundable occupation license payment is repayable to the resident upon termination (subject to a new ORA being issued to
an incoming resident), the fair value is equal to the face value, being the amount that can be demanded.
The expected maturity of the refundable obligations to residents is beyond 12 months.
As at
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
REFUNDABLE OCCUPATION RIGHT AGREEMENTS
Refundable occupation right agreements 53,418 52,572
Less: Management fee receivable (per contract)(15,575)(15,147)
Refundable Occupation Right Agreements 37,843 37,425
RECONCILIATION OF MANAGEMENT FEES RECOGNISED UNDER
NZ IFRS AND PER ORA
Management fee receivable (per contract)(15,575)(15,147)
Deferred management fees2.1 7, 3 57 7,608
Management fee receivable (per NZ IFRS)(8,218)(7,539)
COMPRISING OF
Current deferred management fees2,0381,918
Non-current deferred management fees5,3195,690
Deferred management fees7, 3 577,608
18
RADIUS CARE FINANCIAL STATEMENTS 2025
3.4. Leases
Right-of-use Assets
Right-of-use assets are measured at cost (adjusted for any
remeasurement of the associated lease liability), less accumulated
depreciation and any accumulated impairment loss.
Right-of-use assets are depreciated over the shorter of the
lease term and the estimated useful life of the underlying asset,
consistent with the estimated consumption of the economic
benefits embodied in the underlying asset.
Lease Liabilities
Lease liabilities are initially recognised at the present value of the
future lease payments (i.e., the lease payments that are unpaid
at the commencement date of the lease). These lease payments
are discounted using the interest rate implicit in the lease, if that
rate can be readily determined, or otherwise using the Group’s
incremental borrowing rate.
Subsequent to initial recognition, the lease liability is
measured at amortised cost using the effective interest
rate method. Interest expense on lease liabilities is
recognised in profit or loss (as a component of finance
costs). Lease liabilities are remeasured to reflect changes
to lease terms, changes to lease payments and any lease
modifications not accounted for as separate leases.
Variable lease payments not included in the measurement
of lease liabilities are recognised as an expense
when incurred.
Leases of 12 Months or Less and Leases of Low
Value Assets
Lease payments made in relation to leases of 12-months
or less and leases of low value assets (for which a lease
asset and a lease liability has not been recognised) are
recognised as an expense on a straight line basis over the
lease term.
19
RADIUS CARE FINANCIAL STATEMENTS 2025
Key Accounting Estimates and Judgements
Extension and termination options are included in a number of leases across the Group. These terms are used to maximise the
operational flexibility of contracts. The majority of extension and termination options are exercisable only by the Group and not by
the respective lessor. All extension options have been assumed for the calculations of the Group’s lease liabilities.
The weighted average incremental borrowing rates applied by the Group is 5% (2024: 5%). No new leases were entered into during
the year (2024: None) and no leases were cancelled or modified during the year (2024: None).
As at
In thousands of New Zealand dollars
31 March 2025 31 March 2024
(A) RIGHT-OF-USE ASSETS
Land and buildings under lease137,359132,816
Accumulated depreciation(27,830)(22,910)
Total carrying amount of right-of-use assets109,529109,906
RECONCILIATIONS
Reconciliation of the carrying amount of right-of-use assets at the beginning and end of the financial year:
Land and buildings
Opening carrying amount109,906112,464
Depreciation(4,920)(4,822)
Remeasurements4,5432,264
Closing carrying amount109,529109,906
(B) LEASE LIABILITIES
Current land and buildings 2,8682,670
Non-current land and buildings 119,829118,416
Total122,697121,086
For the year ended
In thousands of New Zealand dollars
31 March 2025 31 March 2024
(C) LEASE EXPENSES AND CASH FLOWS
Interest expense on lease liabilities 5,934 5,962
Depreciation expense on right-of-use assets 4,920 4,822
Cash outflow in relation to leases8,8658,671
(D) MATURITY ANALYSIS — CONTRACTUAL UNDISCOUNTED CASH FLOWS
Not later than 1 year8,9928,702
Later than 1 year and not later than 5 years35,83234,340
Later than 5 years178,413181,677
Total223,237224,719
20
RADIUS CARE FINANCIAL STATEMENTS 2025
4. SHAREHOLDER EQUITY AND FUNDING
4.1. Shareholder Equity and Reserves
20252024
Shares$000Shares$000
SHARE CAPITAL
Authorised, issued and fully paid up capital284,737,25356,794 284,876,74256,820
Total contributed equity284,737,25356,794284,876,74256,820
MOVEMENTS
Opening balance of ordinary shares issued284,876,74256,820284,848,64456,813
Shares issued to employees 57,864 12 28,098 7
Share buyback scheme(197,353) (38) ——
Closing balance of ordinary shares issued284,737,25356,794284,876,74256,820
All ordinary shares are authorised and rank equally with one vote attached to each fully paid ordinary share. The shares have no par
value. The Group incurred no transaction costs issuing shares during the year (2024:Nil).
During the year ended 31 March 2025, 197,353 were repurchased on market as part of the Group’s on-market share buyback
programme to purchase up to 0.7% if its ordinary shares from 23 December 2024 for a period of 12 months.
Dividends
Dividend distributions to shareholders are recognised as a liability in the period in which dividends are declared. On 22 April 2024 a
final cash dividend of 0.70 cents per share (fully imputed) was declared in relation to the year ended 31 March 2024 and was paid on
16 May 2024. On 25 November 2024 a cash interim dividend of 0.65 cents per share (fully imputed) was declared in relation to the
year ended 31 March 2025 and paid on 19 December 2024.
On 21 May 2025 a final cash dividend of 0.80 cents per share (fully imputed) was declared and will be paid on 19 June 2025.
20252024
Cents per
share
Total $000
Cents per
share
Total $000
RECOGNISED AMOUNTS:
Prior year final dividend0.701,994——
Interim dividend
0.651,852——
1.35 3,846 ——
Final dividend declared0.80 2,278 0.701,994
Other Reserves
Asset Revaluation Reserve
The asset revaluation reserve is used to record the revaluation of freehold land and buildings.
Share Based Payments Reserve
Share based payments reserve is used to record the reserves arising in relation to share based payments by the Group.
Cash Flow Hedge Reserve
The cash flow hedge reserve is used to record the effective portion of gains or losses on hedging instruments that are designated
and qualify as cash flow hedges. Amounts are reclassified to profit or loss when the hedged forecast transactions affect profit or loss.
21
RADIUS CARE FINANCIAL STATEMENTS 2025
Put Option Reserve
The Put Option Reserve records the initial debit to equity arising from the Group’s recognition of a financial liability in respect of
the written put option over the remaining 49% non-controlling interest in Cibus Catering Limited. Under the Group’s accounting
policy (refer Note 5.6), which applies the present-access method, this reserve also captures any subsequent remeasurements of the
liability. In accordance with NZ IAS 32 and consistent with IFRIC guidance, changes in the liability are recognised directly in equity,
rather than through profit or loss.
As at
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
Asset revaluation reserve9,4969,496
Share based payments reserve13082
Cash flow hedge reserve4.4(282)—
Put option reserve5.6(1,127)—
Total8,2179,578
4.2. Earnings per share
Basic and Diluted
Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted average number of ordinary
shares outstanding during the year. As at 31 March 2025, there were no shares with a dilutive effect (31 March 2024: None) and
therefore basic and diluted earnings per share were the same.
For the year ended
In thousands of New Zealand dollars
31 March 202531 March 2024
Profit/(Loss) after tax7,399(8,488)
Weighted average number of ordinary shares outstanding ('000s)284,874284,871
Cents per share 2.60 (2.98)
4.3. Borrowings
Borrowings are initially recognised at fair value, including transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the
Statement of Comprehensive Income over the period of the borrowings, using the effective interest method.
As at
In thousands of New Zealand dollars
31 March 202531 March 2024
SECURED LIABILITIES
Current
Bank loans——
Other loans
1
132—
Non-current
Bank loans70,16975,869
70,30175,869
1. Other loans represent equipment and vehicle finance loans held by Cibus Catering Limited with Westpac New Zealand Limited ($64k) and UDC Finance ($68k). These are
secured by way of equipment and vehicles themselves, and the Westpac loans also include a general security agreement over the assets and all present and after-acquired
property of Cibus Catering Limited.
22
RADIUS CARE FINANCIAL STATEMENTS 2025
Terms and Conditions and Assets Pledged as Security
Current
$000
Non-
current
$000
Facility
Limit
$000
Effective
Interest
Rate
%
Expiry Date
31 MARCH 2025
ASB Facility - A — 11,700 20,000 7.291 November 2026
ASB Facility - B — 9,694 9,700 6.781 November 2026
ASB Facility - C — 14,500 14,500 6.561 November 2026
ASB Facility - D — 23,675 23,675 7. 9 56 May 2027
ASB Facility - F — 10,600 10,600 8.1528 March 2027
Other loans 132 — 132
132 70,169 78,607
31 MARCH 2024
ASB Facility - A — 16,500 20,000 7.801 November 2026
ASB Facility - B — 9,694 9,700 7.331 November 2026
ASB Facility - C — 14,500 14,500 7.301 November 2026
ASB Facility - D — 23,675 23,675 8.806 May 2027
ASB Facility - F — 11,500 11,500 8.6928 March 2027
— 75,869 79,375
ASB Bank Limited Loans
Security
The ASB Bank Limited bank committed money market loans of the Group are guaranteed by certain Group entities and secured by
mortgages over the Group’s care centre freehold land and buildings and rank second behind the Statutory Supervisors when the
land and buildings are classified as investment property and investment property under development.
As at 31 March 2025 the balance of the bank loans over which the properties are held as security is $70.2m (31 March 2024:
$75.9m), the total commitment as at 31 March 2025 is $78.6m (31 March 2024: $79.4).
Other
As at 31 March 2025, the Group has a Corporate Banking Overdraft Facility Agreement with ASB Bank Limited for $2m (31 March
2024: $2m). This facility bears interest at an effective interest rate of 7.60% (31 March 2024: 8.82%) and is secured over the assets of
the Group and guaranteed by certain Group entities. At 31 March 2025 no balance was drawn down (31 March 2024: Nil).
Covenants
As at 31 March 2025, the Group classified its secured borrowings of $70.2 million (31 March 2024: $75.9 million) as non-current
liabilities. These borrowings are subject to financial covenants under the Group’s financing arrangements with ASB Bank Limited,
which are tested and reported quarterly. The ASB Bank have set predetermined ratios within the financing arrangements for each of
the following covenants:
• Fixed Charge Cover ratio;
• Leverage ratio; and
• Equity ratio.
For covenant purposes, Adjusted EBITDA and Net Interest are calculated based on accounting policies applied prior to the
adoption of NZ IFRS 16 Leases, excluding the impact of right-of-use assets and lease liabilities.
The Group complied with all covenant requirements during the reporting period and as at 31 March 2025. Based on management’s
forecast and assessment, continued compliance is expected for at least the next 12 months, and there is no material risk that the
non-current borrowings will become repayable within that period.
23
RADIUS CARE FINANCIAL STATEMENTS 2025
4.4. Interest Rate Swaps
The Group uses interest rate swaps to manage its risk associated with interest rate fluctuations. Interest rate swaps are initially
recognised at fair value on the date a contract is entered into and are subsequently measured at fair value on each reporting date.
The fair values of the interest rate swaps are determined based on cash flows discounted to present value using current market
interest rates. The non-current portion of interest rate swaps comprised of $0.3 million in liabilities (2024: Nil). The Group has 43%
(2024: Nil) of interest-bearing borrowings covered by fixed interest rate swap agreements.
Cash Flow Hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to its floating rate debt. These interest
rate swaps qualify for cash flow hedge accounting. When interest rate swaps meet the criteria for cash flow hedge accounting, the
effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income, while the ineffective
portion is recognised in the income statement. Amounts taken to reserves are transferred out of reserves and included in the
measurement of the hedged transaction when the forecast transaction occurs. When interest rate swaps do not meet the criteria
for cash flow hedge accounting, all movements in fair value of the hedging instrument are recognised in the income statement.
Under the interest rate swap agreements that qualify for cash flow hedge accounting, the Group has a right to receive interest
at variable rates and to pay interest at fixed rates (“payer interest rate swap agreements”). These agreements effectively change
the Group’s interest exposure on the principal covered by the interest rate swaps from a floating rate to fixed rates, which range
between 3.71% and 4.31% (2024: Nil). At 31 March 2025, the Group had interest rate swap agreements in place with a total notional
principal amount of $30 million. Of the swaps in place, at 31 March 2025, all were active.
The fair value of these agreements at 31 March 2025 is a $0.3 million liability. The agreements cover notional amounts for terms of
up to three years. The notional principal amounts and the period of expiry of the cash flow hedge interest rate swap contracts are
as follows:
As at
In thousands of New Zealand dollars
31 March 202531 March 2024
Less than 1 year——
Between 1 and 2 years 10,000 —
Between 2 and 3 years 20,000 —
Total 30,000 —
24
RADIUS CARE FINANCIAL STATEMENTS 2025
5. OTHER DISCLOSURES
5.1. Income Tax
Key Accounting Estimates and Judgements
Deferred Tax on Investment Property
Deferred tax on investment property is assessed on the basis that the asset value will be realised through use (“Held for Use”).
An initial recognition exemption has been applied to newly developed village sites in accordance with NZ IAS 12 Income Taxes.
The Group’s ORAs comprise two distinct cash flows (being an ORA deposit upon entering the unit and the refund of this deposit
upon exit). In determining the tax base of investment property, the Group considered whether taxable cash flows are received at
the end of the ORA period (i.e. upon refund of the ORA deposit by way of set off on exit by a resident) or at the beginning of the
ORA period (i.e. at time of the receipt of the ORA deposit). The Group has carefully evaluated all the available information and
considers it appropriate to recognise and measure the tax base and associated deferred tax based on the taxable cash flows being
receivable at the end of the ORA period as this best represents the Group’s contractual entitlement.
In calculating deferred tax under the Held for Use methodology, the Group has made significant judgements to determine taxable
temporary differences. The carrying value of the Group’s investment property is determined on a discounted cash flow basis
and includes cash flows that are both taxable and non-taxable in the future. The Group has recognised deferred tax on the cash
flows with a future tax consequence being DMF as provided by LVC, to the extent that it arises from depreciable components (i.e.
buildings) of the investment property. The Group uses the valuers valuations to estimate the apportionment of cash flows arising
from the depreciable (i.e. buildings) and non-depreciable components (i.e. land).
Deferred Tax on Buildings
The impact of the removal of tax depreciation on commercial buildings, which reduced the tax base to nil, created a significant
taxable temporary difference for all of the Group’s care home buildings classified as Property, Plant and Equipment, irrespective of
their date of acquisition. The recognition of this temporary difference as a deferred tax liability depends on whether the buildings
were acquired through business combination or whether the initial recognition exception (IRE) in NZ IAS 12 was previously applied.
For the year ended
In thousands of New Zealand dollars
31 March 2025 31 March 2024
(A) COMPONENTS OF TAX EXPENSE
Current tax 1,618 1,635
Deferred tax 1,457 10,452
Total tax expense 3,075 12,087
(B) INCOME TAX RECONCILIATION
The prima facie tax payable on profit before tax is reconciled to the income tax expense
as follows:
Prima facie income tax payable on profit before tax at 28.0% 2,933 1,008
Permanent differences(269) (264)
(Over)/Under provision for income tax in prior year(396) 85
Deferred tax impact from reversal of depreciation on buildings 824 11,339
Other(17) (81)
Income tax expense attributable to profit 3,075 12,087
25
RADIUS CARE FINANCIAL STATEMENTS 2025
As at
In thousands of New Zealand dollars
31 March 2025 31 March 2024
(C) DEFERRED TAX
Deferred tax assets
Lease liabilities 34,355 33,903
Provisions 3,231 2,696
Deferred management fee income 74 1,126
Tax losses—604
Total deferred tax asset 37,660 38,329
Deferred tax liabilities
Property, plant and equipment 2,779 2,898
Customer relationships 228 —
Right-of-use assets 30,668 30,774
Deferred tax impact from reversal of depreciation on buildings 12,124 11,339
Total deferred tax liability 45,799 45,011
Net deferred tax assets/(liabilities)(8,139)(6,682)
For the year ended
In thousands of New Zealand dollars
31 March 202531 March 2024
(D) DEFERRED INCOME TAX REVENUE COMPRISES:
Through profit included in income tax expense
Decrease/(Increase) in deferred tax assets 669 (390)
Decrease in deferred tax liabilities 535 10,842
Increase in deferred tax liabilities as a result of acquisition
253 —
1,457 10,452
Through other comprehensive income
Increase in deferred tax liabilities
——
——
Deferred tax assets are recognised for deductible temporary differences as Management considers that it is probable that future
taxable profits will be available to utilise those temporary differences.
For the year ended
In thousands of New Zealand dollars
31 March 202531 March 2024
(E) IMPUTATION CREDITS AVAILABLE FOR USE IN SUBSEQUENT PERIODS
Balance at the beginning of the year7,0 2 86,016
Dividends paid(1,496)—
New Zealand tax payments, net of refunds 2,601 1,012
Balance at the end of the year 8,133 7,0 2 8
26
RADIUS CARE FINANCIAL STATEMENTS 2025
5.2. Intangible Assets
Goodwill
As at
In thousands of New Zealand dollars
31 March 202531 March 2024
Goodwill at cost17,25516,063
Customer relationships813—
Total18,06816,063
Goodwill by CGU
Care16,06316,063
Catering business1,192—
Total17,25516,063
Key Accounting Estimates and Judgements
Goodwill is allocated to twenty one (2024: Twenty) individual CGUs within the Group (which are various individual residential care,
village and a catering businesses acquired by the Group (refer to note 5.6) during the year as part of the acquisition of a 51% interest
in Cibus Catering Limited on 1 October 2024), the Group recognised an intangible asset of $0.9 million attributable to goodwill.
Corporate office cash flows incurred by the Group is allocated to each CGU based on bed numbers.
Care CGUs Recoverable Amount
The recoverable amount of CGUs as at reporting date has been determined based on its fair value less costs of disposal, determined
using discounted cash flows that includes Management’s estimates based on past performance and its expectation for the future
performance for up to five years. These estimates are based on budgeted projections of occupancy levels, sales growth and changes
to cost structures. Cash flows from performance thereafter are estimated using a standard growth rate deemed to be reasonable
by Management.
The key assumptions used for discounted cash flows calculations are as follows:
• The year one through five of the forecast cash flows are based on Management forecasts approved by the Board of Directors.
• The cash flow period used in the calculations was five years (2024: Five years).
• The post-tax discount rate applied in the calculations was between 10.5% and 12.0% (2024: Post-tax between 11.0% and 12.6%). The
pre-tax discount rate applied in the calculations was between 13.6% and 15.7% (2024: Pre-tax between 14.3% and 16.6%).
• The terminal growth rate applied in the calculations was 2.0% (2024: 2.0%)
• Occupancy projections vary between CGU based on actual and expected occupancy rates.
Management believes that no reasonably possible changes in any of the above key assumptions would cause the carrying value of the
goodwill to be materially lower than its recoverable amount.
The recoverable amount of the individual care sites as at 31 March 2025 has been determined based on fair value less costs of
disposal, determined using discounted cash flows. As the recoverable amount of individual care sites was determined using inputs
that are significant and unobservable, the Group has categorised these inputs as Level 3 under the fair value hierarchy in accordance
with NZ IFRS 13 Fair Value Measurement. The significant unobservable inputs used in the fair value measurement of the recoverable
amount of the Group’s individual care sites were as described above, year one to five forecast cash flows, a pre-tax discount rate, a
terminal growth rate and occupancy projections based on actual and expected occupancy rates.
• A significant increase/(decrease) in the forecast cash flows, terminal growth rate, and occupancy projections and rates,
assumptions would result in a significantly higher/(lower) fair value measurement.
• A significant increase/(decrease) in the pre-tax discount rate would result in a significantly (lower)/higher fair value measurement.
27
RADIUS CARE FINANCIAL STATEMENTS 2025
Catering business CGU Recoverable Amount
The recoverable amount of the Cibus Catering business CGU has been determined as at reporting date using the Value in Use
(VIU) method. The VIU calculation is based on a five-year discounted cash flow model, prepared using Board-approved forecasts,
with a terminal growth rate applied thereafter. The model includes only third-party revenue and actual gross profit margins
achieved in FY25.
The key assumptions used for the discounted cash flows are as follows:
• The year one through five of the forecast cash flows are based on Management forecasts approved by the Board of Directors.
• The cash flow period used in the calculations was five years.
• The post-tax discount rate applied in the calculations was between 10.5% and 12.0% The pre-tax discount rate applied in the
calculations was between 13.6% and 15.7%.
• The terminal growth rate applied in the calculations was 2.0%.
• Management fee allocations reflect actual Cibus structure.
Management believes that no reasonably possible changes in any of the above key assumptions would cause the carrying value of
the goodwill to be materially lower than its recoverable amount.
Customer Relationships
As at
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
CUSTOMER RELATIONSHIPS
Opening balance——
Additions5.6903—
Amortisation(90)—
Closing net book value813—
The Group recognised an intangible asset of $0.9 million attributable to customer relationships. The asset reflects the present
value of expected future gross profit from contracts with external customers over the 12-month period ending 31 March 2026 and
is amortised over a five year’s. Significant judgement was applied in determining the appropriate valuation approach. Management
considered and ultimately did not apply a long-term forecast model, as Cibus’ customer contracts are generally short-term and
cancellable with three months’ notice. The business operates in the aged care catering sector, which is characterised by competitive
tender processes, high customer turnover, and limited long-term contractual lock-in. As a result, a valuation based on the expected
gross profit from existing external customer contracts over a one-year period was deemed more appropriate than longer-term
models reliant on renewal rates or customer retention forecasts. Internal customers within the Group were excluded from the
valuation. Management used contract-level data and gross profit history to calculate the present value of the forecast earnings and
considered this to be the best available estimate of the asset’s fair value at the date of acquisition. No indicators of impairment were
identified at 31 March 2025.
5.3. Trade and Other Receivables
Trade receivables are amounts due from residents and Government agencies in the ordinary course of business and are recognised
initially at fair value being the transaction price plus any transaction costs. Subsequent to initial recognition, receivables from
contracts with customers are measured at amortised cost using the effective interest method less impairment.
As at
In thousands of New Zealand dollars
31 March 2025 31 March 2024
CURRENT
Trade receivables11,51512,335
Allowance for credit losses(672)(522)
10,84311,813
NZX listing bond 75 75
Prepayments1,9042,816
Accrued Income663298
2,6423,189
13,48515,002
28
RADIUS CARE FINANCIAL STATEMENTS 2025
Recognition, Measurement and Judgements in Applying Accounting Policies
When measuring expected credit losses (‘ECL’) the Group uses reasonable and supportable forward looking information, which is
based on assumptions for future movement of different economic drivers and how these drivers will affect each other.
The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of
the debtors and an analysis of the debtors’ current financial positions, adjusted for factors that are specific to the debtors, general
economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast
direction of conditions at the reporting date.
The Group has the following financial assets subject to the application of the expected credit loss model:
• Trade receivables from care operations for the provision of care fees revenue for rest home and hospital fees. These are split
between private amounts owed by residents and amounts due from agencies such as the Ministry of Health and Accident
Compensation Corporation.
• Trade receivables from village operations for the provision of weekly service fees and occupation licence payment receivables.
These are receivable from residents.
The following table provides information about the risk profile of trade receivables from contracts with residents and Government
agencies using a provision matrix. The information in the below table does not distinguish between resident or product types as the
Group’s historical credit loss experience does not show different patterns for different resident or product types.
Expected Credit Losses
Days Past Due
Not Past Due31-6061-9091 & OverTotal
AS AT 31 MARCH 2025
Estimated total gross carrying amount ($000)7,6168273222,75011,515
Expected credit loss rate (%)0.2%0.4%1.9%23.5%5.8%
Expected credit loss rate ($000) 15 3 6 648 672
AS AT 31 MARCH 2024
Estimated total gross carrying amount ($000)7,8781,1127292,61612,335
Expected credit loss rate (%)0.2%0.3%1.8%23.0%4.4%
Expected credit loss rate ($000) 16 3 13 490 522
5.4. Trade and Other Payables and Provisions
The Group’s obligation with respect to employees defined contributions entitlements is limited to its obligation for any unpaid The Group’s obligation with respect to employees defined contributions entitlements is limited to its obligation for any unpaid
superannuation guarantee entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end superannuation guarantee entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end
of the reporting period.of the reporting period.
As at
In thousands of New Zealand dollars
31 March 2025 31 March 2024
CURRENT
Unsecured trade and other payables
Trade creditors5,2734,312
GST payable1,4141,184
Other payables32131
Accrued expenses2,2282,251
Provisions
Annual leave7,4906,400
Other employee entitlements6,1345,812
22,86019,990
29
RADIUS CARE FINANCIAL STATEMENTS 2025
5.5. Related Party Transactions
The following are the Group’s subsidiaries and are incorporated in New Zealand and have a balance date of 31 March.
Name of EntityPrincipal Activities
Ownership
Interests and
Voting Rights
Class of
Shares20252024
Radius Arran Court Limited1
Previously dormant, amalgamated into Radius
Residential Care Limited during the year.
0%100%Ordinary
Cibus Catering Limited2
Residential Catering – aged care and boarding
schools
51%0%Ordinary
Clare House Retirement
Village Limited
Operating entity for Clare House Retirement
Village and property owning entity for the Clare
House care home
100%100%Ordinary
Clare House Care Limited1
Previously operating entity for Clare House care
home, amalgamated into Radius Residential Care
Limited during the year.
0%100%Ordinary
Elloughton Grange
Village Limited
Operating entity for Elloughton Retirement Village100%100%Ordinary
Radius Care Holdings Limited
Property owning entity for St Helenas, Thornleigh
Park, Lexham Park, Elloughton Gardens, Heatherlea,
Windsor Court, Taupaki Gables, Peppertree, St
Joans and Fulton care homes
100%100%Ordinary
Radius Care
Limited (non-trading)
Dormant100%100%Ordinary
R Connect Limited
Staff placement company providing short term
staffing solutions
100%100%Ordinary
Radius SPV Limited
Property owning entity for
Matamata Country Lodge and Matamata
Retirement Village
100%100%Ordinary
Radius Matamata Retirement
Village Limited
Operating entity for Matamata Retirement Village100%100%Ordinary
Windsor Lifestyle Estate
Limited
Operating entity for Windsor Retirement Village100%100%Ordinary
1. On 2 September 2024, Radius Arran Court Limited and Clare House Care Limited were amalgamated into Radius Residential Care Limited.
2. On 1 October 2024, the Group acquired 51% of available shares in Cibus Catering Limited (refer Note 5.6).
30
RADIUS CARE FINANCIAL STATEMENTS 2025
Key Management Personnel Compensation and Other Related Parties
Key management personnel are all executives and Directors with the authority for the strategic direction and management
of the Group.
Related PartyRelationship
Brien CreeDirector and Ultimate Shareholder (via Wave Rider Holdings Limited)
Bret JacksonDirector and Ultimate Shareholder (via Takatimu Investments Limited)
Duncan CookDirector and Shareholder
Hamish StevensDirector and Shareholder
Mary GardinerDirector
Tom WilsonDirector and Shareholder
Cibus Catering LimitedCommon Director (Brien Cree) (up to 30 September 2024)
Main Family TrustShareholder
Neil FosterShareholder
Providence TrustTrustee (Brien Cree)
Takatimu Investments LimitedShareholder
Time Capital NZ Limited Common Shareholder (Tom Wilson)
Valhalla Capital LimitedCommon Director (Brien Cree)
Warehouse Storage LimitedCommon Shareholder (Neil Foster)
Wave Rider Holdings LimitedShareholder
31
RADIUS CARE FINANCIAL STATEMENTS 2025
Key Management Personnel Compensation
For the year ended
In thousands of New Zealand dollars
31 March 2025 31 March 2024
Directors' remuneration and expenses
1
981579
Dividends to Director related entities1,384—
Key management personnel salaries and other short term employee benefits3,5543,132
Key management personnel dividends2—
Total Director and key management payments 5,9213,711
1. Included within Directors remuneration and expenses were fees relating to additional services provided in regards to strategic projects.
OTHER RELATED PARTIES
Catering services
Cibus Catering Limited (up to 30 September 2024)4,4428,332
Consulting fees
Duncan Cook
2
250237
Time Capital NZ Limited—10
Rent paid
Warehouse Storage Limited 1,1231,078
Rent received and utility recharges
Cibus Catering Limited (up to 30 September 2024)3584
Personal guarantee fee
Brien Cree170171
Business acquisition
Valhalla Capital Ltd
3
465—
Vendor loan interest
Main Family Trust—1,312
Related party loan interest
Providence Trust—109
As at
In thousands of New Zealand dollars
31 March 2025 31 March 2024
Trade creditors
Cibus Catering Limited—703
Trade debtors
Cibus Catering Limited—5
2. Predominately relates to services provided as General Counsel (2024: Predominately relates to services provided as General Counsel).
3. Related to the consideration for the purchase of the Cibus Catering business acquisition during the 2025 financial year (refer note 5.6). Valhalla Capital Limited previously
held a 24% shareholding in Cibus Catering Limited. This shareholding, together with an additional 26% acquired from two other shareholders unrelated to the Group, was
purchased by Radius Residential Care Limited.
Assignment of an Agreement for the Purchase of Land From a Director
Brien Cree (Director) and the Group are party to an agreement (“the Assignment Agreement”), whereby, Mr Cree has agreed to
assign to the Group his rights under an agreement for sale and purchase of real estate (“Land SPA”), to acquire a circa 4.3 hectare
development property at Main North Road, Belfast, Christchurch (‘the development property’) from an unrelated third party.
The balance of the purchase price under the land sale and purchase agreement amounting to $5.5m is payable to the third party
vendor on settlement, which will be completed when the title of the property is issued. It is currently expected that title will be
issued in mid 2025.
32
RADIUS CARE FINANCIAL STATEMENTS 2025
5.6. Business Combinations
Summary of Acquisition
On 1 October 2024 the Company acquired 51% of the assets and liabilities of Cibus Catering Limited, a provider of catering serviced
to the aged care sector.
Details of the purchase consideration, the net assets acquired and goodwill are as follows:
As at
In thousands of New Zealand dollars
1 October 2024
Fair Values
Purchase consideration
Cash paid 1,938
Total 1,938
The assets and liabilities recognised as a result of the acquisition are as follows:
Property, plant and equipment 468
Cash and cash equivalents999
Intangible assets — customer relationships 903
Trade and other receivables398
Inventory98
Trade and other payables(1,694)
Current tax liabilities(120)
Borrowings(177)
Deferred tax liability(253)
Put option to purchase the non-controlling interest’s share of Cibus Catering Limited.(1,127)
Put option reserve1,127
Net assets and liabilities recognised 622
NCI, based on their proportionate interest in the amounts recognised of assets and liabilities of
Cibus Catering Limited
124
Goodwill on acquisition1,192
The goodwill is attributable primarily to the expected synergies from integrating Cibus’ catering operations with the Group’s
existing aged care and healthcare network, as well as the skills and industry-specific experience of Cibus’ workforce. None of the
goodwill recognised is expected to be deductible for tax purposes.
Put Option to Purchase the Non-Controlling interest’s Share of Cibus Catering Limited.
The acquisition is structured through a put/call option mechanism, enabling either party to facilitate the purchase/sale of the
remaining 49% of the shares on the fifth anniversary of the initial transaction.
The option agreement allows the Group to buy the remaining shares from the non-controlling interest (NCI) at a specified multiple.
The put option also enables NCI shareholders to require the Group to purchase their shares at the agreed pricing. This financial
liability is recognised initially at the present value of the redemption amount and is remeasured in equity.
The transaction valuation employs an EV/EBITDA multiple, an appropriate valuation technique under NZ IFRS 13 Fair Value
Measurement, leveraging market-based data to determine fair value. The option is accounted for using the present-access method,
whereby a non-controlling interest in the company continues to be recognised in equity as the non-controlling shareholders
maintain their current access to returns from their ownership interests.
The financial liability was recognised at acquisition on 1 October 2024 at $1.12 million, being the present value of the expected future
redemption amount payable at the end of year five. This measurement required significant judgement, particularly in concluding
that the structure of the agreement reflects a forward purchase arrangement, and therefore no option pricing model (e.g. Black-
Scholes) was applied.
The Group has adopted a policy of remeasuring the liability through equity (as a Put option reserve), consistent with the nature of
the instrument and its treatment at initial recognition.
As at 31 March 2025, there has been no change in the inputs or assumptions affecting the valuation of the put liability. Accordingly,
no remeasurement adjustment has been recognised during the year.
33
RADIUS CARE FINANCIAL STATEMENTS 2025
Revenue and Profit Contribution
The acquired business contributed revenues of $3.6 million and profit after tax of $0.4 million to the Group for the period from 1
October 2024 to 31 March 2025.
If the acquisition had occurred on 1 April 2024, the Group estimates the consolidated pro-forma revenue and profit after tax for the
period ended 31 March 2025 would have been $7.3 million and $0.6 million respectively. These amounts have been calculated using
the subsidiaries’ results and adjusting them for any differences in accounting policies between the Group and the subsidiary.
Purchase Consideration — Cash Outflow to Acquire Subsidiary
As at
In thousands of New Zealand dollars
31 March 2025
Fair Values
Cash1,938
Net outflow of cash — investing activities1,938
The business combination resulted in goodwill on acquisition as the purchase price exceeded the fair value of assets acquired and
liabilities assumed.
5.7. Non-Controlling Interests
The following table summarises the information relating to each of the Group’s subsidiaries that has material NCI, before any intra-
group eliminations.
As at
In thousands of New Zealand dollars
Cibus Catering
Limited
ASSETS
Cash and cash equivalents 1,679
Trade and other receivables 445
Inventories 119
Property, plant and equipment 455
Deferred tax asset 113
Total assets 2,811
LIABILITIES
Trade and other payables(1,875)
Current tax liabilities(312)
Borrowings(132)
Total liabilities(2,319)
Net assets 492
Net assets attributable to NCI 241
For the year ended
In thousands of New Zealand dollars
Cibus Catering
Limited
Revenue from contracts with customers 8,038
Profit 744
Other comprehensive income (OCI)—
Total comprehensive income 744
Profit allocated to NCI 365
OCI allocated to NCI—
Cash flows from operating activities 765
Cash flows from investment activities (39)
Cash flows from financing activities(45)
Net (decrease)/ increase in cash and cash equivalents held 681
Net (decrease)/ increase in cash and cash equivalents held allocated to NCI 333
34
RADIUS CARE FINANCIAL STATEMENTS 2025
5.8. Long Term Incentive Plan (LTIP)
On 18 July 2022, the Board approved a Long Term Incentive Plan for its senior executives.
Performance Hurdles
All Performance Share Rights (PSRs) will vest into ordinary shares in Radius if the 10-day Value Weighted Average Price (VWAP),
for the 10 trading days immediately prior to (and not including) 18 July 2025, is equal to or greater than $1.081. This is three times
the 10-day VWAP of 18 July 2022 (“Base Price”).
If the 10-day VWAP is between $1.027 and $1.081 (being 95% and 100% of three times the Base Price), the Radius Board has
discretion to scale the number of a participant’s PSRs that will vest.
Recognition and Measurement
• On 18 July 2022, 4,164,844 share rights were issued for nil consideration and a nil exercise price in relation to the LTIP.
• On 15 August 2022, 1,109,824 share rights were issued for nil consideration and a nil exercise price in relation to
the LTIP.
During the period, no share rights were forfeited. No share rights were exercised or expired during the period. The fair value of the
share rights were determined using the Monte Carlo valuation approach.
5.9. Financial Risk Management
The Group is exposed to the following financial risks in the normal course of business:
a. Credit risk
b. Liquidity risk
c. Interest rate risk
The Board of Directors reviews and agrees on policies for managing each of these risks as summarised below:
As at
In thousands of New Zealand dollars
NOTE
31 March 2025 31 March 2024
AMORTISED COST FINANCIAL ASSETS
Cash and cash equivalents2,5712,350
Trade and other receivables5.310,84311,813
Total assets13,41414,163
AMORTISED COST FINANCIAL LIABILITIES
Trade and other payables5.49,2367,7 7 8
Lease liabilities3.4122,697121,086
Borrowings4.370,30175,869
Refundable Occupation Right Agreements3.337,84337,425
Total liabilities240,077242,158
(a) Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation.
The Group’s exposure to credit risk, or the risk of counterparties defaulting arises mainly from cash at bank, trade and
other receivables.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date, of recognised
financial assets is the carrying amount of those assets, net of any provisions for impairment of those assets, as disclosed in the
consolidated statement of financial position and notes to consolidated financial statements.
The Group has no significant concentrations of credit risk. The Group’s trade receivables represent distinct trading relationships
with each of its residents and various Government agencies. The only large trade receivables relate to residential care subsidies
which are receivable in aggregate from various District Health Boards and Work and Income New Zealand. These entities are not
considered a credit risk.
The Group does not have any material credit risk exposure to any single counterparty or group of counterparties under financial
instruments entered into by the Group.
35
RADIUS CARE FINANCIAL STATEMENTS 2025
Cash Deposits and Other Receivables
Credit risk for cash deposits is managed by holding all cash deposits with high credit rating financial institutions, i.e. major
registered New Zealand banks.
Trade Receivables
Credit risk with respect to trade receivables is limited due to the large number of customers which qualify for Ministry of Health
funding in relation to payment of our services. Amounts owed by the residents are generally unsecured. Credit risk is managed
through the use of admission agreements for all residents, which gives contractual rights to the Group in relation to security and
collection of debts in circumstances where there is no entitlement to Ministry of Health funding. All admissions are reviewed to
ensure a duly completed admission agreement is available. The loss allowance for expected credit losses of trade receivables is
provided in Note 5.3. As the Group undertakes transactions with a large number of customers and regularly monitors payment in
accordance with credit terms, the financial assets that are neither past due nor impaired, are expected to be received in accordance
with the credit risk.
(b) Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
The Group has liquidity risk with respect to its repayment obligations of financial liabilities.
The Group maintains a rolling 90 day forecast of daily cash flows to ensure it will have sufficient liquidity to meet its liabilities as
they fall due. This is linked to a monthly rolling forecast which provides directional liquidity expectations for a minimum of a further
twelve months.
The Group has a bank facility which is subject to certain covenant clauses, whereby it is required to meet certain key performance
indicators. This bank facility is provided by the ASB Bank. Refer to note 4.3 for further information on the Group’s banking facility
and covenant compliance.
The following table outlines the Group’s remaining contractual maturities for non-derivative financial instruments. The amounts
presented in the table are the undiscounted contractual cash flows of the financial liabilities allocated to time bands based on the
earliest date on which the Group can be required to pay.
In thousands of New Zealand dollars
Less than 1
Year
Between 1
and 2 Years
Between 2
and 5 YearsOver 5 Years
AS AT 31 MARCH 2025
Trade and other payables9,236 — — —
Lease liabilities8,9929,00826,824178,413
Borrowings — — 70,169 —
Refundable Occupation Right Agreements
1
37,843 ———
56,0719,00896,993178,413
AS AT 31 MARCH 2024
Trade and other payables 7,7 78 — — —
Lease liabilities8,7028,70325,637181,677
Borrowings — — 75,869 —
Refundable Occupation Right Agreements
1
37,425———
53,9058,703101,506181,677
1. The refundable ORAs are repayable to the resident on vacation of the unit or on the termination of the occupation right agreement and subsequent resale of the unit. The
expected maturity of the refundable ORAs is shown in note 3.3.
36
RADIUS CARE FINANCIAL STATEMENTS 2025
c. Interest Rate Risk
The Group is exposed to interest rate risk in relation to its interest earning cash deposits and its interest bank borrowings. Interest
rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market
interest rates. The Group manages interest rate risk by maintaining a mix of variable rate and fixed rate borrowings, including
interest rate swaps described in note 4.4.
Interest rates on cash at bank are subject to market risk in the event of changes its interest rates. Interest rates on non-current bank
borrowings are generally subject to review annually or at shorter intervals, and interest rates on current borrowings can be reviewed
at the lender’s discretion.
The following table outlines that Group’s exposure to interest rate risk in relation to future cash flows and the effective weighted
average interest rates on classes of financial assets and financial liabilities:
In thousands of New Zealand dollars
Interest
Bearing
Non-interest
Bearing
Total Carrying
Amount
Weighted
Average
Effective
Interest Rate
As at 31 March 2025
FINANCIAL INSTRUMENTS
Financial assets
Cash2,571—2,5710.0% Fixed
Financial liabilities
Bank and other loans(70,301)—(70,301)7.42%
Lease liabilities(122,697)—(122,697)5.0% Fixed
Total(192,998)—(192,998)
As at 31 March 2024
FINANCIAL INSTRUMENTS
Financial assets
Cash2,350—2,3500.0% Fixed
Financial liabilities
Bank and other loans(75,869)—(75,869)7.95%
Lease liabilities(121,086)—(121,086)5.0% Fixed
Total(196,955)—(196,955)
The interest rate on the Group’s bank loans is fixed for a relevant ‘Interest period’ (being either 30, 60, 90 or 180 days) and
comprised of the Base Rate (equal to the BKBM on the first day of the relevant Interest Period), plus a Margin and Line fee in
accordance with the Group’s agreement with the bank. The weighted average interest period term as at 31 March 2025 was 30 days
(2024: 30 days).
No other financial assets or financial liabilities are expected to be exposed to interest rate risk.
Sensitivity
If interest rates were to increase/decrease by 100 basis points from the rates prevailing at the reporting date, assuming all other
variables remain constant, then the impact of profit for the year and equity would be as follows:
For the year ended
In thousands of New Zealand dollars
31 March 2025 31 March 2024
+ / - 100 basis points
Impact on profit after tax(506)(644)
Impact on equity(142)(180)
37
RADIUS CARE FINANCIAL STATEMENTS 2025
5.10. Contingent Liabilities
Lester Heights Business
26 June 2013, the Group entered into an agreement to sell the
Lester Heights business. The sale was settled on 31 August 2013.
One of the conditions of sale is that in the event that the new
business owner defaults on the rental payments, the Group is
required to guarantee the rent. No amounts have been paid to date,
but in the event that a default occurs, the potential cost to the
Group is an annual rent of $286,210 (2024: $286,210) per annum
until 2029. The Group will likely assume operations at this care
home, in the event of a default. At reporting date the Group has
assessed the likelihood of the new business owner defaulting on the
rental payment as not probable (2024: Not probable).
Other
There were no other material contingent liabilities at reporting date
(2024: None).
5.11. Commitments
At 31 March 2025, the Group had capital commitments of $0.07m
(2024: $0.03m).
There are no significant unrecognised contractual obligations
entered into for future repairs and maintenance at balance date.
The Group is also has a $5.5m (2024: $5.5m) commitment to
acquire a 4.3 hectare development property at Main North Road,
Belfast, Christchurch as described in note 5.5. Related Party
Transactions ‘Assignment of an Agreement for the Purchase of Land
From a Director’.
The acquisition of the property is expected to be funded from
available banking facilities and working capital.
5.12. Events Subsequent to Reporting Date
Dividends
On 21 May 2025, the Board declared a final dividend of
0.80 cents per share (fully imputed), that is due to be paid
on 19 June 2025.
Acquisition of a Care Home
On 30 April 2025, the Group entered into an unconditional
agreement to acquire the business and assets of the
St Allisa care home in Christchurch for $14.7 million.
The agreement is conditional only on usual regulatory
approvals. Settlement is expected to take place on Friday
30 May 2025.
The acquisition includes a sale and leaseback of the land
and buildings with Warehouse Storage Limited that would
also be settled on 30 May 2025. The property will be sold
for $13.6 million and leased back to the Group for an initial
term of 30 years with two 10-year rights of renewal. The
balance of the acquisition price of $1.1m will be funded from
working capital.
The Group is yet to complete a purchase price allocation
for the acquisition as at the date of signing of these
consolidated financial statements.
Other
There has been no other matter or circumstance which has
arisen since 31 March 2025 that has significantly affected or
may significantly affect:
a. the operations, in financial years subsequent to 31 March
2025, of the Group; or
b. the results of those operations; or
c. the state of affairs, in financial years subsequent to 31
March 2025, of the Group.
38
RADIUS CARE FINANCIAL STATEMENTS 2025
Level 9, 45 Queen Street, Auckland 1010 T: +64 9 309 0463
PO Box 3899, Auckland 1140 E: auckland@bakertillysr.nz
New Zealand W: www.bakertillysr.nz
38
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Radius Residential Care Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Radius Residential Care Limited and its subsidiaries ('the
Group') on pages 2 to 37, which comprise the consolidated statement of financial position as at 31 March 2025, and
the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated
statement of cash flows for the year then ended, and notes to the consolidated financial statements, including
material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2025, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards ('NZ IFRS') and International Financial Reporting Standards ('IFRS').
Our report is made solely to the Shareholders of the Group. Our audit work has been undertaken so that we might
state to the Shareholders of the Group those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Shareholders of the Group as a body, for our audit work, for our report or for the opinions we have formed.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Group in accordance with
Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor and provider of other assurance services, we carried out an agreed-upon
procedures engagement in accordance with International Standard on Related Services (New Zealand) ISRS (NZ)
4400 (Revised), Agreed-Upon Procedures Engagements, over the 30 September 2024 consolidated interim financial
statements. Our firm also carried out other assignments for Radius Residential Care Limited and its subsidiaries in
the area of taxation compliance services. The provision of these other services has not impaired our independence.
39
RADIUS CARE FINANCIAL STATEMENTS 2025
39
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current year. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter How our audit addressed the key audit matter
Impairment testing of goodwill
As
disclosed in Note 5.2 of the Group’s consolidated
financial statements, the Group has goodwill of $17.3 m
(2024: $16.1m) allocated across 21 (2024: 20) cash-
generating units (‘CGUs’) (relating to various individual
residential care, village and a catering businesses) as at 31
March 2025.
Goodwill was significant to our audit due to the size of the
asset and the subjectivity, complexity and uncertainty
inherent in the measurement of the recoverable amount of
these CGUs for the purpose of the required annual
impairment test. The measurement of a CGUs’ recoverable
amount includes the assessment and calculation of its ‘fair
value less costs of disposal’.
Management has completed the annual impairment test for
all CGUs as at 31 March 2025.
This annual impairment test involves complex and
subjective estimation and judgement by Management on
the future performance of the CGUs, discount rates applied
to the future cash flow forecasts, the terminal growth rates,
costs of disposal and future market and economic
conditions.
Management has also engaged an external valuation expert
to assist in the annual impairment testing.
Our audit procedures, among others, included:
• Understanding and evaluating the Group’s internal controls relevant
to the accounting estimates used to determine the recoverable
value of the Group’s CGUs.
•
Evaluating Management’s determination of the Group’s CGUs
based on our understanding of the nature of the Group’s business
and the economic environment in which the CGUs operate. We also
analysed the internal reporting of the Group to assess how CGUs
are monitored and reported.
• Evaluating the competence, capabilities, objectivity and expertise of
Management's external valuation expert and the appropriateness of
the expert's work as audit evidence for the relevant assertions.
• Challenging Management’s assumptions and estimates used to
determine the recoverable value of the Group’s CGUs, including
those relating to forecasted revenue, costs, capital expenditure,
discount rates, by adjusting for future events and corroborating the
key market-related assumptions to external data.
Procedures included:
o Evaluating the logic of the ‘fair value less costs of disposal’
calculations supporting Management’s annual impairment test
and testing the mathematical accuracy of these calculations;
o Evaluating Management’s process regarding the preparation and
review of forecasts (balance sheet, income statement, and cash
flow statement);
o Comparing forecasts used in the calculations to Board approved
forecasts;
o Evaluating the accuracy of the Group’s forecasting to actual
historical performance;
o Evaluating the forecast growth assumptions;
o Evaluating the inputs to the calculation of the discount rates
applied;
o Engaging our own internal valuation experts to evaluate the logic
of the ‘fair value less costs of disposal’ calculations and the
inputs to the calculations of the discount rates applied;
o Evaluating the forecasts, inputs and any underlying assumptions
with a view to identifying Management bias;
o Evaluating Management’s sensitivity analysis for reasonably
possible changes in key assumptions; and
o Performing sensitivity analysis for reasonably possible changes
in key assumptions, the two main assumptions being: the
discount rate and forecast growth assumptions.
• Evaluating the related disclosures (including the accounting
policies and accounting estimates) about goodwill assets in the
Group’s consolidated financial statements.
40
RADIUS CARE FINANCIAL STATEMENTS 2025
40
Key Audit Matter How our audit addressed the key audit matter
Valuation of investment properties
As disclosed in Note 3.1 of the Group’s consolidated
financial statements, as at 31 March 2025, the Group has
investment properties (operated by the Group as retirement
villages) totalling $77.1m (2024: $73.5 m) (referred to,
together as ‘the investment properties’).
Investment properties were significant to our audit due to
the size of the assets and the subjectivity, complexity and
uncertainty inherent in estimating the fair value of the
investment properties.
Management has engaged an independent external valuer
(‘the Valuer’) to determine the fair value of the Group’s
investment properties as at 31 March 2025. The Valuer
performed their work in accordance with the International
Valuation Standards and the Australia and New Zealand
Valuation and Property Standards, NZ IFRS 13 Fair Value
Measurement and NZ IAS 40 Investment Property. The
Valuer engaged by the Group has appropriate experience in
the sector in which the Group operates.
For each investment property, the Valuer considered
property-specific information such as the income generated
by departures and the re-sale of independent living units.
They then applied assumptions in relation to, the timing of
unit re-sale, the length of occupancy of existing residents,
the price paid by new residents, price movements, type of
Occupancy Right Agreement, discount rate, growth rate and
terminal yield. The Valuer also considered the individual
characteristics of each village, its location, its nature, its
resident profile and the expected future cash flows for that
particular village.
The Group has adopted the assessed values determined by
the Valuer.
Our audit procedures, among others, included:
• Understanding and evaluating the Group’s internal controls
relevant to the accounting estimates used to determine the fair
value of the Group’s investment properties.
• Reading and evaluating the external valuation reports for the
Group’s investment properties as at 31 March 2025.
• Confirming that the valuation approaches for the investment
properties were in accordance with NZ IFRS 13 and NZ IAS 40, and
suitable for determining the fair value of the Group’s investment
properties as at 31 March 2025.
• Evaluating the competence, capabilities, objectivity and expertise
of Management's external valuation expert and the
appropriateness of the expert's work as audit evidence relevant to
the valuation assertion.
• Agreeing property-related data provided by Management to the
Valuer, to the Group’s records.
• Engaging our own external property valuation expert to assist in
understanding and evaluating the following, based on their
specialist knowledge from performing and reviewing valuations of
similar properties, known relevant transactional evidence and
available market data:
o the work and findings of the Group’s external valuation
expert engaged by Management;
o the Group’s valuation methods and assumptions to assist us
in challenging the appropriateness of valuation methods and
assumptions used by Management; and
o the acceptable range of values considered reasonable to
evaluate Management’s adopted valuation estimate.
This involved discussing and corresponding with Management, the
Valuer engaged by the Group and our own external property
valuation expert.
• Evaluating the selection of valuation methods, inputs and
assumptions with a view to identifying Management bias.
• Agreeing the Adopted value of the Operators Interest to the
external valuation reports and checking adjustment made in
relation to Refundable Occupation Right Agreements and Deferred
Management fees recognised separately on the consolidated
statement of financial position.
• Evaluating the disclosures (including the accounting policies and
accounting estimates) related to the investment properties which
are included in the Group’s consolidated financial statements
(including disclosure on the valuation uncertainty clauses included
by Management's external valuation expert in their valuation
reports).
41
RADIUS CARE FINANCIAL STATEMENTS 2025
41
Key Audit Matter How our audit addressed the key audit matter
Valuation of freehold land and buildings
As disclosed in Note 3.2 of the Group’s consolidated
financial statements, as at 31 March 2025, the Group has
freehold land and buildings (operated by the Group for
provision of care services) totalling $96.0m (2024: $97.6m)
(referred to, together as ‘the freehold land and buildings’).
Freehold land and buildings were significant to our audit
due to the size of the assets and the subjectivity,
complexity and uncertainty inherent in estimating the fair
value of the freehold land and buildings.
Under the requirement of NZ IAS 16 Property, Plant and
Equipment, revaluations shall be made with sufficient
regularity to ensure that the carrying amount does not differ
materially from that which would be determined using fair
value at the end of the reporting period. The frequency of
revaluations depends upon the changes in fair values of the
items of property, plant and equipment being revalued.
When the fair value of a revalued asset differs materially
from its carrying amount, a further revaluation is required.
Some items of property, plant and equipment experience
significant and volatile changes in fair value, thus
necessitating annual revaluation. Such frequent
revaluations are unnecessary for items of property, plant
and equipment with only insignificant changes in fair value.
Instead, it may be necessary to revalue the item only every
three or five years.
Management assessed that these freehold land and
buildings had not experienced any significant and volatile
changes in fair value necessitating a revaluation as at 31
March 2025. This assessment was informed by an external
desktop valuation report provided by the Group’s land and
buildings Valuer, who advised that the carrying amounts of
these freehold land and buildings did not differ materially
from that which would be determined using fair value as at
31 March 2023.
For each freehold land and building property, the Valuer
considered property-specific information such as
capitalisation rates and earnings per care bed. The Valuer
also considered the individual characteristics of each
property, its location, and its nature.
Our audit procedures, among others, included:
• Understanding and evaluating the Group’s internal controls
relevant to the accounting estimates used to determine the fair
value of the Group’s freehold land and buildings.
• Reading and evaluating the external desktop valuation reports for
the Group’s freehold land and buildings as at 31 March 2025 and
external valuation reports as at the respective valuation dates.
• Confirming that the valuation approach for the properties is in
accordance with NZ IFRS 13 and NZ IAS 16, and suitable for
determining the fair value of the Group’s freehold land and building
properties as at 31 March 2025.
• Evaluating the competence, capabilities, objectivity and expertise
of Management's external valuation expert and the
appropriateness of the expert's work as audit evidence relevant to
the valuation assertion.
• Agreeing property-related data provided by Management to the
Valuer to the Group’s records.
• Engaging our own external property valuation expert to assist in
understanding and evaluating the following, based on their
specialist knowledge from performing and reviewing valuations of
similar properties, known relevant transactional evidence and
available market data:
o the work and findings of the Group’s external valuation
expert engaged by Management;
o the Group’s valuation methods and assumptions to assist us
in challenging the appropriateness of valuation methods and
assumptions used by Management; and
o the acceptable range of values considered reasonable to
evaluate Management’s adopted valuation estimate.
This involved discussing and corresponding with Management, the
Valuer engaged by the Group and our own external property
valuation expert.
• Evaluating the selection of valuation methods, inputs and
assumptions with a view to identifying Management bias.
• Evaluating the disclosures (including the accounting policies and
accounting estimates) related to the freehold land and buildings
and income tax which are included in the Group’s consolidated
financial statements (including disclosure on the valuation
uncertainty clauses included by Management's external valuation
experts in their valuation reports).
42
RADIUS CARE FINANCIAL STATEMENTS 2025
42
Key Audit Matter How our audit addressed the key audit matter
Valuation and completeness of lease liabilities and right-
of-use assets
As disclosed in Note 3.4 of the Group’s consolidated
financial statements, the Group has lease liabilities of
$122.7m (2024: $121.1m), and, right-of-use assets of
$109.5m (2024: $109.9m) as at 31 March 2025.
Lease liabilities and right-of-use assets were significant to
our audit due to the size of the assets and liabilities and the
subjectivity, complexity and uncertainty inherent in the
application of NZ IFRS 16 Leases and the assumptions
required by Management for the calculations of the lease
balances and interest and depreciation expenses.
Management completed calculations of the lease balances
for all leases for the year ended, and as at, 31 March 2025.
These calculations required estimates regarding the lease
term and the incremental borrowing rates. During the year
ended 31 March 2025, no new leases were entered into.
Management has exercised their judgement in determining
the recoverability of right-of-use assets. No impairment has
been recognised.
Our audit procedures, among others, included:
• Understanding and evaluating the Group’s internal controls
relevant to the accounting estimates used to determine the
expected term of the Group’s leases and applicable incremental
borrowing rates.
• Evaluating Management’s process relating to the identification,
recording, recognition and measurement of leases within the
scope of NZ IFRS 16.
• For all leases:
o Agreeing key inputs in the lease calculation to the underlying
lease agreement(s);
o Recalculating the lease liability and right-of-use assets
based on the key inputs noted above and comparing our
recalculations to the balances recognised by the Group; and
o Checking the appropriateness of the classification of the
lease liability between current and non-current based on the
remaining term of the lease.
• For all existing leases, evaluating Management’s calculations for
the subsequent measurement of the leases, including lease
modifications and rent revisions.
• Evaluating the completeness of identified lease contracts by
checking that all leased facilities were included in the calculation.
• Evaluating Management’s estimates regarding the terms of the
leases and Management’s consideration of options to extend or
terminate the leases.
• Evaluating Management’s assessment of the incremental
borrowing rates applied to individual leases or portfolios of leases.
• Evaluating the inputs and any underlying assumptions with a view
to identifying Management bias.
• Evaluating Management’s assessment of any indicators of
impairment for the right-of-use assets in accordance with NZ IAS
36 Impairment of Assets.
• Evaluating the disclosures (including the accounting policies and
accounting estimates) related to lease liabilities and right-of-use
assets which are included in the Group’s consolidated financial
statements.
43
RADIUS CARE FINANCIAL STATEMENTS 2025
43
Responsibilities of the Directors for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the Directors determine
is necessary to enable the preparation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the consolidated financial statements is located
at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
The engagement partner on the audit resulting in this independent auditor’s report is S N Patel.
BAKER TILLY STAPLES RODWAY AUCKLAND
Auckland, New Zealand
21 May 2025
---
Results announcement
Results for announcement to the market
Name of issuer Radius Residential Care Limited
Reporting Period 12 months to 31 March 2025
Previous Reporting Period 12 months to 31 March 2024
Currency NZ$
Amount (000s) Percentage change
Revenue from continuing
operations
$177,415 3.6%
Total Revenue $180,651 3.8%
Net profit/(loss) from
continuing operations
$7,399 (187.2%)
Total net profit/(loss) $7,399 (187.2%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.00800000
Imputed amount per Quoted
Equity Security
$ 0.01111111
Record Date 5 June 2025
Dividend Payment Date 19 June 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
$0.20 $0.19
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
• Within the net profit amount of $7,399k is $365k which
relates to non-controlling interests of a partially owned
subsidiary.
• Change in net profit is presented as a negative
percentage due to prior year net loss after tax of
$8,488k.
• Please refer to attached documents (consolidated
financial statements, media release and results
presentation) for further information.
Authority for this announcement
Name of person
authorised
to make this announcement
Jeremy Edmonds
Contact person for this
announcement
Jeremy Edmonds
Contact phone number
+64 22 650 9354
Contact email address Jeremy.Edmonds@radiuscare.co.nz
Date of release through MAP
21 May 2025
Audited financial statements accompany this announcement.
---
Distribution Notice
Section 1: Issuer information
Name of issuer Radius Residential Care Limited
Financial product name/description Ordinary shares
NZX ticker code RAD
ISIN (If unknown, check on NZX
website)
NZRADE0005S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 5 June 2025
Ex-Date (one business day before the
Record Date)
4 June 2025
Payment date (and allotment date for
DRP)
19 June 2025
Total monies associated with the
distribution
$2,277,898.02
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZ$
Section 2: Distribution amounts per financial product
Gross distribution $ 0.01111111
Gross taxable amount $ 0.01111111
Total cash distribution $ 0.00800000
Excluded amount (applicable to listed
PIEs)
$ N/A
Supplementary distribution amount $ N/A
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed
Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$ 0.00311111
Resident Withholding Tax per
financial product
$ 0.00055556
Section 4: Authority for this announcement
Name of person
authorised to make
this announcement
Jeremy Edmonds
Contact person for this
announcement
Jeremy Edmonds
Contact phone number
+64 22 650 9354
Contact email address Jeremy.Edmonds@radiuscare.co.nz
Date of release through MAP
21 May 2025
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.