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
Outlook for 2011/12
The Group currently has a development pipeline (beyond those developments on site) of 20 sites with an estimated end value of £60 million, in a sector that is expected to provide further opportunities for development and consolidation. The focus on running a cost effective business will continue, as the Group targets property management costs to fall below 2.5% of rent roll, (£1.1 million in the year ended 31 March 2011 equating to 3.5% of current rent roll) and to maintain central overhead and corporate costs below 0.5% of gross assets (£2.1 million in the year ended 31 March 2011 equating to 0.37% of gross assets at 31 March 2011). The sale agreed of Assura Pharmacy and the proposed sale of Assura’s LIFT consultancy business will enable the Group to focus solely on increasing returns and shareholder value from its high quality and growing medical centre property portfolio.
