First full year of acquired aged-care lifts revenue to $19.0m

Reported revenue therefore rose to $19.0m from $6.1m (+213.6%), but this is an acquisition-lap effect rather than organic expansion.

Below the revenue line, EBITDAF reached $4.5m (no prior comparable disclosed on the same basis), profit before tax swung to $1.9m from –$0.3m (+862.4%), and NPAT moved to $2.0m from $0.1m (+1,900.0%). Operating cash flow was $4.8m versus $0.6m. The balance sheet contracted: total assets fell 13.0% to $51.5m and total liabilities fell 22.8% to $33.0m, with gross borrowings broadly stable at $17.2m and cash up to $2.4m.

• Both the current and comparable periods carry acquisition and discontinued-operation overlays, and the FY21 result included roughly half a year of the aged-care platform. The +213.6% revenue print and +1,900.0% NPAT print therefore measure scope expansion, not trading momentum. Without a normalised FY21 baseline, the investor read on underlying growth is unsupported by the data here.
• First measurable leverage anchor sits at 3.3x. With EBITDAF of $4.5m and net debt of $14.7m, net debt to EBITDAF is approximately 3.3x. Gross borrowings barely moved, so the improvement versus prior is essentially the first full year of earnings against a debt stack assembled at acquisition. This matters because debt capacity, not earnings growth, is likely the binding constraint on the stated villa-expansion strategy.
• Cash conversion is strong and working capital released. OCF/EBITDAF of 107.1% and FCF/NPAT of 212.5% reflect both a working-capital release (debtor days from 44.9 to 20.1) and capex stepping down 90% to $0.5m after the prior-year acquisition spend. The cash result is therefore more reassuring than the P&L percentages suggest, but the receivables normalisation is a one-time benefit that will not repeat.

The interim context shows HY22 revenue of $8.8m (46.1% of the full year) and an HY22 net loss of $0.1m, so essentially all FY22 NPAT was generated in the second half. That second-half skew is consistent with operational ramp-up post-acquisition rather than underlying seasonality, which means FY23 needs to demonstrate that the H2 run rate is the base rather than the peak.

Forward commentary points to 45 additional beds in FY23, continued dual-purpose hospital/dementia conversion, and ORA sales from new villa builds. None of these are quantified in the release, so the bridge from FY22's $4.5m EBITDAF to any stated FY23 outcome cannot be assessed.

The capex step-down from $4.9m to $0.5m is the main reason FCF turned positive, and that capex line will rise again as the 45-bed expansion and villa builds progress, so this year's FCF should not be treated as the maintainable level.

The earnings side is mixed. The effective tax rate of 3.3% (versus 110.2% prior) flatters NPAT, so PBT growth of +862.4% is the cleaner operating read, but it is still distorted by the acquisition lap. EBITDAF of $4.5m is the first usable margin anchor: at 23.5% of revenue, it is the first datapoint against which future periods can be judged. Working capital contributed materially to operating cash flow as debtor days more than halved, and that release will not recur. Discontinued operations contributed only $19k after tax and do not move the read.

This briefing cannot assess underlying organic growth or normalised margin, because the supplied FY21 comparable does not represent a full year of the acquired aged-care business.