Good morning, all, and welcome to Radius Care's Full-Year Results Presentation for the year to 31 March. My name is Andrew Peskett. I'm the Chief Executive Officer, and I'll be co-presenting with Jeremy and Brien this morning. We are also joined by several significant shareholders, directors of Radius Care, and employees. Welcome, all, and we will move to page three, please. Today I will present the overview of the FY 2025 performance in Section 1. I will then hand to my left, to Jeremy, to present the analysis of the result, Section 2. Brien, our founder and Executive Chair, will present Section 3, the growth strategy. I will finish the presentation off with a couple of slides, including our outlook statements. Moving to overview of the performance for the year, as we always do, we like to start with our people.
It's our 1,900 people who come to work every day to provide exceptional care to our residents that have contributed to this result, and it's their result, really. What do we need to confirm about our people? We have an excellent group of leaders in our 23 care homes. I like to call them the 23 CEOs of the care homes who are autonomous, focused on continuous improvement, and eager to learn and do better every day. I think that bears fruit in the results. Decisions are made at care homes, but with support from us and with decisions through regional areas as well mean that we get really, really good autonomous teams working well with our care homes, as overseen by executive team members who, as you'll see in the presentation, regularly visit our care homes to check in.
As a result, our turnover has now tracked slightly below 17%, which is an excellent indication that our people are engaged and enjoy working for Radius Care. An opportunity to say thank you to all of our 1,900 people for their work every day in looking after and caring for our residents. Our next slide is the business highlights for the year. There is a lot of highlights up here. I would just like to call out a few. Firstly, our EBITDA per bed at $28,000 is a new record that has improved from just under $20,000 a few years ago and continues to increase year on year up to $28,000 per bed, which is more than every other operator in New Zealand. We are very proud of that and continuing to grow that. Our 20% growth in underlying EBITDA is also worth calling out. Another very strong financial result.
That's the number that we tend to look at in line with how the business is performing and in line with net profit before and after tax, both which increased significantly. We've had an improved mix of higher revenue hospital and specialist care residents, so ACC, psychogeriatric, dementia, and hospital residents, which means our revenue per bed per day is higher and continuing to increase, certainly higher than competitors and continuing to increase year on year at Radius Care. We've declared a record dividend, which is up 14% on FY 2024's dividend. $0.008 per share fully imputed will be paid in July. The last point on the business highlights on this slide is the growth. We'll talk a little bit later. The St. Allisa acquisition of 109 beds in Christchurch from Arvida settles next week, and we're very excited to welcome those people at the St.
Allisa care home and to integrate that into our business so that that will be earnings accretive through the year. As we've talked previously, we completed the acquisition of 51% of Cibus during the year. In terms of financial highlights, we've touched on some on the previous page. Another couple to point out on this page, accommodation supplements. We've had a focus on accommodation supplements, and that $1 million or just over $1 million increase reflects both more beds being charged to accommodation supplements and at a higher rate. Year on year, strong growth on accommodation supplements continuing into FY 2025 and beyond. Operating cash flow is a metric we look at fairly closely. A 42% increase in operating cash flow for the year is significant and a very pleasing result. FO up 18% on last year, supporting strong dividend payouts, which we've talked about.
Both the drawn debt and the net debt, so both drawn debt and net debt reduced by approximately $6 million from the last financial year, which is again good, with interest costs going down both at an aggregate number on the amount of debt and the interest rate falling. That is a good result. My final slide before I hand over to Jeremy is a very significant slide, and I would just like to emphasize the importance of four-year certification. When you have your care home certified every year or when they are due to be audited, you either get a one, a two, a three, or a four-year certification. Pleasingly, we currently have 16 of our 23 care homes with four-year certification. That standard is getting harder to attain, and several other care homes are falling away to two or three years within Radius Care.
As you can see, we've increased from we had five care homes in FY 2021 four years ago at four-year certification. We've now got 16. Of course, looking to build on that as we've got more certification audits during the year. I think it's a critical metric in that families of residents will look at whether the care home they're looking for, their parents or relatives, has a four-year certification or not. Quite often, if it doesn't, they won't have their family stay there. It's a very important lead indicator to our stronger occupancy, which we have talked about and we'll talk about more in the future currently, and a lead indicator to satisfaction and the exceptional care that we deliver. That's me on the first section. I'll now hand over to Jeremy, our Chief Financial Officer, for a more in-depth analysis of the result.
Thank you, Andrew. I'll cover a very brief overview of our most important indicators of financial performance for the year. Starting with our most important financial metrics, which are underlying EBITDA and underlying EBITDA per care bed. In both of these critical metrics, we've shown very strong growth against the previous year, which in itself saw growth on the year before that. Now, both of these metrics delivered growth as a result of our improved occupancy, which strengthened during the year, improved MIPS, which Andrew referred to earlier, and a team that across the board really has shares of focus on tight cost management. Underlying EBITDA was also assisted by the acquisition partway through the year of Cibus, which made a meaningful contribution to the second half.
Overall, we're particularly pleased with our EBITDA per care bed, which at $28,000 continues an industry-leading profile for us. On the top line, we also saw revenue growth. Revenue was driven by our improved occupancy, which on average for the year was 92.8%, up 1% on the previous year. That strengthened in the second half, and our final week of March was 93.9%. We start the year with increasing momentum in occupancy. Accommodation supplements also saw continued growth. We're pleased with the 11% growth there in an area where we attract an additional charge for our premium rooms. That performance is ultimately reflected in an increased dividend that we're able to pay to shareholders. The final dividend is $0.008 per share, which is 14% growth on last year's $0.007 per share.
That'll be paid in a few weeks on the 19th of June. As a profitable company that pays tax, we're very pleased that we can attach imputation credits to our dividends. With both the fully imputed interim dividend and the final dividend, it's a cash dividend of $0.0145 for the year, but with imputation credits, it represents an attractive gross yield at the current share price. That also allows cash to be retained for our exciting growth plans. We've paid out only 47% of FO, which means that a significant amount of cash has been retained both to pay down debt and to be held for future growth. I'll hand over to Brien, who's going to talk about an update on our growth strategy.
Thanks, Jeremy. Moving on to, I suppose, the future. Our execution of our capital-light growth strategy, we have three main pillars here. The first is to grow scale. We've talked about this many times. We'll continue to do that through leased care opportunities, targeted M&A, brownfield and greenfield developments. Our second pillar is through diversifying revenue. We've made significant inroads into this strategy. We've acquired Cibus Catering, and we intend to grow that now as a standalone business. We're growing RConnect, which is our nursing bureau, and that provides temporary staff to the broader aged care and home care service. We're expanding the Radius Care Shop. That's our online shop. We are expanding into other health services beyond core aged care. The third pillar is RadPro. We're developing RadPro as a fully integrated operating platform for aged care and home care services.
I'll expand on each one of these in the next three or next two slides. Growing scale. Pillar one, this is about our capacity to expand. We're aware that at a high occupancy, we need to keep growing our core aged care business. Andrew touched on this being the most recent acquisition of St. Allisa in Christchurch, which will settle at the end of this month. That's a property that we will lease. We've acquired the total property and then on-sold the land and buildings to an independent landlord. This will deliver material EBITDA growth from FY 2026 forward, really. We'll continue to add large care facilities as we come across them. There's not a huge number of them in the country, but it is our area of expertise. As they do come up, we'll look to acquire those.
The second area is greenfield and brownfield development. We've talked about this development before. It's due to kick off this year. It is a 4.3-hectare site in Christchurch. It'll have 80 villas and a 100-bed care facility. We're going to build and sell the land and buildings on that facility and take a head lease across the care facility. We'll own the village and we'll own the business of the care facility, which again is reinforcing our capital-light future. Additionally to that, we've got a project underway to build and lease back new care facilities. We've signed our first heads of agreement. We have a landlord in the Waikato who is in the process of getting building consent and resource consent to build our first property. Christchurch at Belfast will be our second.
We have a number of discussions underway with different landlords to build and lease care facilities to us. On the next slide, our second pillar is to diversify revenue. Cibus Catering, we've talked about. That's going very well. The second pillar is to broaden our health services. We're doing that through home support. Radius Care has recently been accredited as an ACC home care provider, not something that should be taken lightly. It was an extremely difficult process. Took us over a year to achieve that. We're now onboarding our first ACC clients in their own homes. Additionally to that, we have our own general home care business, which is starting to roll out using our care facilities as bases for home care. We're also growing RConnect. I mentioned that, which is our full-service nursing bureau.
That provides temporary staffing to aged care and home care companies throughout the broader two sectors. We are also growing the Radius Care online shop, and we are developing our own brands in areas like incontinence products. We are expanding the general product offering of that online shop. Finally, for me, why are we different? This touches a little bit on what we call RadPro. Our culture, we have a number. Basically, the key point to our culture is our focus on care, being our priority. Yes, we are good at cost management. We are good at growing revenue, but care is our key focus. We are also focused on lean commercial habit base within the support office here in Auckland. Portfolio is large sites, quality buildings with diversified revenue streams. Intellectual property is 22 years of experience in specialist care.
The things that we're not, we're not retirement village property developers as our core business. Therefore, we are not dependent on the property market. Secondly, we have no care suites. Perhaps a little bit of a difference to other listed companies, but from a care suite point of view, it doesn't really fit the high acuity model because of the short-term stay of people. We are not heading down a care suite path. RadPro is our Radius unique protocols and operating systems that we've developed over 22 years, and we are now developing that into a full-service suite. That's it from me. Back to Andrew.
Thanks, Brien. Just before we flick on to the next slide, you might see me buried in there amongst our wonderful people at Mata Mata. A couple of—oh, sorry, last week I finished a tour to celebrate the company achieving 95% occupancy. We had a goal a year or two ago to get to 95% occupancy across a week or two, and we achieved that a few weeks ago. I delivered cheesecakes or had delivered cheesecakes to all of our 23 care homes. As you can see, some pretty happy people and pretty invested and engaged people that contributed to that result. Nice to see that slide there. Thanks, Jeremy. Next slide on capital management. I just wanted to call out three parts to our new confirmed capital management framework.
The first, as you can see, we have set a target of net debt to EBITDA of below 2.5 times over the medium term. That is 2.5 times net debt to EBITDA ratio as a new target to make sure our debt is at sensible levels. Point two, we currently own approximately 50% of our care homes, and we want to maintain the ratio of between 25% and 50%, so between a quarter and a half of our care homes to be owned by us. To Brien's point around capital light and leasing, St. Allisa, we are happy to take on more leases because it means more beds. Growing our portfolio and our scale while keeping the cost base minimal is very sensible. The third callout on this slide is the FO range.
We're aiming to pay between 40%-70% of FO, available funds from operations, to dividends. This year, as Jeremy said, we've done that. We're within that range. That's just confirming the range of dividends between 40% and 70% of the FO that we generate every year. There's more detail in the appendix on the slide, but just thought to call out those three key points. Finally, our outlook statement. We are now 50 days into the next financial year, FY 2026. We're well and truly into it. We're pleased to confirm that trading has been strong. As you can see on the slide, the April occupancy was at 94.5% and continues to trade strongly on that front. We also continue to drive higher revenue, occupancy being ACC, hospital, and higher acuity, as Brien was saying.
We're pivoting most of our care homes away from rest home into the future. We have the majority of our care homes, as Brien was saying, full now at 95% or more. That higher acuity, higher revenue admission becomes even more significant across the portfolio. We are expecting in the middle of that slide that all of our key metrics for FY 2026 will be improved on the FY 2025 numbers on the core business. On top of that, on the right-hand side, we have the earnings accretive acquisition of St. Allisa, Cibus, and any other acquisitions that occur during the year. We've hit the ground running in the first 50 days, and we can assure you that we are looking to go hard through the year and maintain that momentum. That is our outlook statements and brings the presentation to a close.
I think if you have questions, we're welcome to take them. If you'd like to raise your hand first, and we'll answer one by one. If you have questions for any of us, I'll direct the answers. So please feel free to ask questions. We don't appear to have any questions. Okay. Give it another couple of 10 seconds. Any opportunity? Thank you for your applause, [Richard]. Okay. No questions. Again, I'd just like to thank you all for joining the call and your support during the year and into the future. Thank you. Have a wonderful team and my co-presenters here, and wish you all a nice day. Thank you.