Assura resumes divi after beating expectations
HEALTHCARE property firm Assura Group has more than doubled half-year operating profits, beating management expectations.
The Warrington company, which develops healthcare facilities and runs a chain of 30 pharmacies, said it will reinstate its dividend, paying 1p a share on January 7.
In the six months to September 30 revenue rose 16.3% to £30.7m. It made an operating profit of £16.6m, up from £7.5m, but finance charges reduced this figure to £9.5m.
After taking into account unrealised liabilities of £20.8m on revalued interest rate swaps with three banks Assura was left with a half-year pre-tax loss of £11.3m.
In its property division the rent roll increased by 4% to £23.4m and rental growth continued to increase with the company conducting 27 rent reviews producing an annualised increase of 5.49%, or an additional £245,000 a year. Assura also completed two medical centre developments in the period with a value of £10.9m.
The pharmacy division had a “strong” half with an operating profit of £1.4m on sales of £16.8m.
Chief executive Nigel Rawlings said: “This has been a significant period for Assura in which it has delivered a strong increase in both revenues and operating profits. The company has been restructured and streamlined into a more focused business delivering growing revenues and sustainable dividends. We are confident of future growth prospects and pleased to be able to resume dividend payments.”
At September 30 the group had cash of £35.3m, up from £24.6m in March. Net indebtedness increased from £231.2m to £234.2m although gearing reduced from 57% to 55% during the period.
