Transformation to a focused primary healthcare property company completed today with £39.3m disposal of Pharmacy business
21 June 2011, Assura Group Limited (“Assura” or “the Company”), the leading UK listed primary healthcare property company, has substantially improved its financial performance in the financial year ended 31 March 2011, whilst simultaneously creating a platform for further growth by refocusing on, and investing in, its core medical property activity.
Strategic
- Disposal of the pharmacy division for £39.3m announced separately today
- Acquisition and successful integration of AH Medical Properties PLC (“AHMP”)
- Substantially improved financial and operational performance over the last 12 months creating a strong platform for growth by refocusing on its core medical property activity.
- Plans to seek a transfer from the Retail Sector to the Real Estate sector of the London Stock Exchange’s Official List as soon as practicable
Financial
- Dividends reinstated: second interim dividend of 1.25p per share announced on 21 June 2011 making a full year dividend of 2.25p
- Revenue increased 11.3% to £62.1 million (2010: £55.8 million)
- Administrative expenses reduced by 14.4% in the last financial year
- Group operating profit increased 240% to £26.2 million (2010: £7.7 million)
- Net profit from continuing operations increased 185% to £15.1 million (2010: £5.3 million)
- Total property assets increased 43.8% to £519.6 million at 31 March 2011 (2010: £361.3 million as restated)
- Balance sheet strengthened with successful open offer and firm placing of equity which raised £23.4 million in February 2011
Operational
- Three medical centre developments completed in the year, three completed since the year end, and eight currently on site, with an aggregate value of £67 million
- Rent roll has risen 38.2% to £31.1 million at 31 March 2011 (from £22.5 million at 31 March 2010)
- Daresbury head office sub-lease assigned for full term as part of restructuring programme
- One pharmacy opened in the financial year, two relocated directly into medical centres, and a pipeline of seven new stores secured, two of which have opened post year end
Nigel Rawlings, Chief Executive of Assura, said: “Assura has today completed its transformation to a focused primary healthcare property development and investment company. We have built a robust property portfolio with assets worth £520 million, with a weighted average lease length of 16.5 years and 87% of rents reimbursed by the NHS.
“A strong increase in revenues on a much reduced cost base has delivered a quadrupling of profits which has enabled us to resume our dividend. With a more robust financial position, a leaner, more focused business, and a healthy development pipeline Assura now has the platform and resources to build an increasingly valuable business for its shareholders.”