Assura Group Limited
("Assura", "the Group" or "the Company")
Unaudited interim results for the six months ended 30 September 2008
26 November 2008: Assura (LSE: AGR) is a health provider organisation that partners with GPs to deliver high quality patient care in the community, innovative property solutions and consumer responsive pharmacy services.
Operating Highlights1
25 GPCos formed covering a population of 2.6 million patients
30 medical services commissioned
37 pharmacies trading with 13 further pharmacy licences granted
Investment portfolio valued at 30 September 2008 at a nominal equivalent yield of 6.03%
Rental growth continues
New executive management board to replace existing three divisional boards
Restructuring being implemented to reduce overheads and drive efficiency
Roadmap to Success
Revised business strategy to concentrate resources on GPCos
Targeting GPCos covering a population of more than 3 million patients with in excess of 60 services commissioned by 31 March 2009
Mature run rate for first 60 services anticipated to generate future turnover into GPCos of circa £15m per annum
Up to 16 non-core pharmacies and/or licences identified for disposal
Up to 80 non-core property assets identified for disposal to be timed with operating business ramp up
Circa 10 non-core investment properties to be disposed of during 2009
Intention to pay part of the net cash realised from disposals by way of special dividend
Financial Highlights
Turnover during first six months up 60% to £22.3m (H1 2007: £13.9m)
Net cash inflow from operating activities £2.8m (H1 2007: £0.5m net cash outflow)
Group trading loss for first six months £1.9m (H1 2007: £1.5m loss)2
Full year trading loss forecast to be between £4m - £6m2
Investment portfolio, development property and work-in-progress and land bank write downs of £26.0m in aggregate
£30m of new equity raised through Placing of 81,081,080 new Ordinary Shares
Resultant pro-forma NAV per share of 81p based on 30 September 2008 valuation
£320m of existing and new facilities providing term debt for periods ranging from 4.5 to 21 years
Net debt drawn amounting to £231m at 30 September 2008
Commenting on the results today, Richard Burrell, Chief Executive of Assura, said:
"Following the revision to the Company's strategy and the raising of the additional £80m funding package in October, Assura now has sufficient long term financing in place to meet its needs and adequate headroom, along with a non-core asset disposal strategy, to fund the planned future ramp up in its operating business.
"We are confident in our revised strategy to focus our resources on the Company's GPCos, enabling them to become highly effective providers of out-patient and diagnostic services to the community. Strong progress is being made in the formation of GPCos and the rolling out of community-based services. This strategy has the clear support of the Government which is committed to the provision of primary and community care across the country from modern purpose-built facilities and Assura in turn benefits from the long-term leases from its GP tenants and the Government's position as ultimate guarantor of the rent and payor of tariffs for services. As demonstrated in the resilience of our recent property valuation, we believe this provides an attractive profile for investors in a very challenging economic climate and we look forward to continuing the roll-out of our strategy over the coming months."
Enquiries:
Richard Burrell, CEO
Louise Bathersby, Marketing & Investor Relations Director
Assura Group Limited
020 7107 3800
David Yates
Emma Thompson
FD
020 7831 3113
1 As at 25 November 2008.
2 Before notional costs of employee share-based incentives.
To read the CEO statement, or download this document in full, please click here.
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