Assura returns to profit and plans to split group

WARRINGTON healthcare provider Assura Group has reported a strong increase in revenues and a return to profit in its half year results.

The company also said it plans to separate its GP business – where Assura partners with groups of GPs to form joint venture provider organisations – from the rest of the group so it can refocus on its core pharmacy and property businesses.

Assura posted a pre-tax profit of £3.97m for the half year to the end of September 2009, compared with the massive £40.8m loss it suffered a year earlier.

Group revenues were up 20% to £26.8m, from £22.3m a year earlier. Pharmacy revenues were particularly strong – up 25% on the previous year to £15.2m.

Richard Burrell, chief executive of Assura, said: “We are pleased to have increased property and pharmacy revenues by 20% and to have returned to profits at a pre-tax level. Assura has a top performing property portfolio and is continuing to achieve strong rental growth in an increasingly stable property market.

“Both our pharmacy and GP Provider Organisation businesses increased revenues strongly in the period and our pharmacy business is now cash generative.”

He added that since the period all of the group’s businesses are trading ahead of budget and that the plan to split the GP business from the rest of the group would accelerate the return of dividend payments. 

“As this business is expected to be loss making for some time and will consume further cash, the board is in the process of evaluating a number of options to separate the GPCo business from the rest of the group. This review of our future options for this business will be completed in the second half of the year and will be reported on in the full year accounts,” he said.

Net debt amounted to £224m at the end of the period, drawn from total facilities of £272m.