Table of Contents
What changed
Revenue from continuing operations rose 10.8% to $146.3m (FY22: $132.1m), and management-defined Underlying EBITDA lifted 32% to $14.2m. Despite that, reported NPAT swung from a $2.7m profit to a $2.1m loss, a $4.8m deterioration the company attributes to property-related items (the release states the loss is "due to property"). EBITDAR per bed of $19.9k was described as "in line" with the prior year, implying the revenue and underlying EBITDA growth was volume-led rather than margin-led.
On the balance sheet, total assets rose to $356.6m from $290.1m, consistent with continued property investment. FY22 context: gross borrowings of $30.0m against $2.1m cash (net debt ~$27.9m), on equity of $70.1m. Current-period cash, borrowings, equity, operating cash flow and capex were not captured in the extraction, so leverage direction cannot be quantified. No dividend is proposed for FY23.
What matters
- The H1-to-H2 profit shape is sharply negative. HY23 delivered NPAT of $1.7m and Underlying EBITDA of $11.3m; implied H2 NPAT is -$3.8m and implied H2 Underlying EBITDA only $2.9m. H1 generated roughly 80% of full-year Underlying EBITDA on only 47.8% of revenue. That is not a second-half-weighted business skewing favourably — it is second-half profitability falling away materially.
- The gap between Underlying EBITDA (+32%) and reported NPAT (loss) is large and not fully bridged in the extract. Management cites "property" as the driver, but the adjustment detail, the Underlying EBITDA reconciliation, and the AFFO bridge were not disclosed in normalized form. Without them, the quality of the +32% underlying number cannot be independently verified.
- Dividend suspension signals caution. FY22 had dividend activity; FY23 is explicitly "not proposed to pay dividends." Combined with a reported loss and prior-year capex of $38.8m on $9.9m operating cash flow (pre-lease FCF of approximately -$29.0m in FY22), capital discipline rather than distributions appears to be the priority.
Expectations
No stated targets, forward-work metrics, or formal guidance were disclosed. Against the interim read-out, which management described as "strong performance," the full-year outcome is materially softer than HY23 trajectory implied: a straight doubling of H1 NPAT would have produced roughly $3.4m, versus the -$2.1m actually reported — a ~$5.5m shortfall concentrated in H2. The release supports a view that top-line and underlying profitability trends remain positive, but does not support a view that reported earnings have stabilised.
Quality of result
Durability of the underlying improvement is plausible on the revenue (+10.8%) and EBITDAR-per-bed (flat at $19.9k) lines, both of which are operational and volume-consistent. The 32% Underlying EBITDA lift is more difficult to assess: the reconciliation is not in the extracted disclosure, and H2 Underlying EBITDA of approximately $2.9m is a steep drop from the $11.3m H1 run. Cash conversion cannot be evaluated — FY23 operating cash flow was not disclosed — which is itself a gap worth flagging given FY22 already showed OCF of only $9.9m against capex of $38.8m. The reported loss is attributed to a single disclosed driver (property), so the PBT/NPAT swing is not unexplained, but the size of the property adjustment is not quantified here.
Unresolved
- What specifically drove the "property" loss — revaluation, impairment, disposal, or development write-down — and is any part of it expected to recur?
- Why did H2 Underlying EBITDA collapse to ~$2.9m from $11.3m in H1? Cost inflation, occupancy, funding mix, or one-offs?
- FY23 operating cash flow, capex, gross borrowings, cash balance, and equity — none were in the normalized extract, leaving leverage trajectory and cash conversion unquantified.
- The Underlying EBITDA and AFFO reconciliations were referenced but not provided; the bridge from +32% underlying to a reported loss is therefore incomplete.
- Dividend policy going forward, given the FY23 suspension.
This briefing cannot assess FY23 cash flow, leverage movement, or the composition of the property-related loss, because those figures were not present in the extracted data.
Key metrics
| Metric | FY23 | FY22 | Change |
|---|---|---|---|
| Revenue | $146.3m | $132.1m | +10.8% ↑ |
| Net profit after tax | −$2.1m | $2.7m | -178.8% ↓ |
| Net cash inflow from operating activities | — | $9.9m | — |
| Final dividend per share | 4929700.0c | — | — |
| Total assets | $0.4m | $290.1m | -99.9% ↓ |
Reference: annolyse.ai/briefings/rad-fy23
Analytical metrics
| Metric | FY23 | FY22 | Context |
|---|---|---|---|
| Effective tax rate | n/a | 13.2% | — |
| Capex | — | $38.8m | — |
| Trade debtors | — | $8.5m | — |
| Gross borrowings | — | $30.0m | — |
| Payout ratio vs NPAT | 0.0% | — | — |
| HY23 share of FY23 revenue | 47.8% | — | Other half was 52.2% |
| HY23 share of FY23 EBITDA | 79.5% | — | Other half was 20.5% |
| HY23 share of FY23 NPAT | -81.9% | — | Other half was 181.9% |
| Profit from continuing operations | −$2.1m | $2.7m | −$4.8m |
Reference: annolyse.ai/briefings/rad-fy23
This analysis was generated using Annolyse, an AI-powered tool that extracts and analyses NZX company announcements. The underlying data is extracted from official company filings and verified against source documents. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.