RAD - Radius Healthcare

[Maverick]

This company is only just deserving of "going concern " status.

If (and perhaps only if) it can sell the designated two of its 13 existing trophy freehold properties (we know Arran Court is one but the other is not named) and settle the transactions by end January it may continue to be supported by lenders. That will be a sacrifice most reluctantly conceded but interest costs alone for the half year to 30 Sept increased by $2.5m, a real drain on its minimalist profitability, and liquidity was helped by a $3m sell down of vacant/held for sale units such that only around $700k stock apparently remains in that category at 30 Sept so that success cannot be repeated just now.

Unfortunate that the listed company most involved in the "rest home and beyond" aged care service is itself on life support. No one will wish this entity to fail so I expect waivers and indulgences will be granted and it will sneak by to end FY24 but it really needs the green shoots listed above to be continued during that period.

Not investable in my opinion, even for the optimistic.

love your work and thinking Ronaldson, great synopsis.

RAD , bless their souls , do a vital job for NZ but as for investing….it’s only hope is for interest rates to fall.

It can’t build its way into a better place. I’d liken it to playing monopoly when yourve got properties but no cash to add any hotels.

RAD is really a proxy investment in falling interest rates. That is the only thing that can boost its wafer thin profit from here.

(sorry I can’t give you some rep points for your post, gotta spread it elsewhere. )