Assura ahead but NHS cuts squeeze margins
HEALTHCARE facilities firm Assura saw rents increase last year but NHS cuts have squeezed margins in its pharmacy business.
The Warrington-based firm owns and manages 165 GP surgeries and community hospitals with a value of £460m and also runs a chain of pharmacies. It employs 300 people at pharmacies and further 60 managing the portfolio.
In a pre-close update the company said trading is ahead on last year and rent reviews at 49 sites led to an annualised increase of 5.6%, worth £480,000.
The pharmacy division has performed well, said Assura, with revenues expected to be up 6% to £33m in the 12 months to March 31. But price cuts introduced by the NHS in September have affected margins, an impact the firm is hoping to mitigate with efficiency savings and continued growth.
In February Assura concluded the £28m takeover of rival AH Medical Properties (AHMP). The deal brought together its 113 medical centres with 52 owned by Plus-listed AHMP. Assura has a further five development sites in progress and under the terms of the deal it took on three from AHMP’s property partner Ashley House.
Today the firm said it had integrated the AHMP portfolio and had a strong pipeline with eight developments in progress – three of which came from AHMP.
At the same time as the deal the company also raised £23m through a firm placing and an open offer which it said had significantly increased its cash position, enabling it to fund the pipeline of opportunities and provide headroom for further developments.
The company’s bank facility with National Australia Bank has been reduced to £126m and will be refinanced “well ahead” of the repayment date of March 2013.
Chairman Rodney Baker-Bates said: “Over the last year Assura has made significant progress including the sale of its 75% stake in Assura Medical to Virgin, the substantial overhead reductions achieved and the important acquisition of AHMP.
“As a result, Assura is a more focused, leaner and financially stronger business capable of paying dividends and well positioned for further growth.”
The company expects to announce full-year figures on June 21.
