DJ Assura PLC Full Year Results
Continued strong growth — 78.0% increase in underlying profit before tax to GBP28.3 million (2015: GBP15.9 million)
— 19.9% growth in investment property, to over GBP1.1 billion (2015: GBP0.9 billion)
— 3.9% growth in diluted EPRA NAV per share to 45.8 pence (2015: 44.0 pence)
— 14.7% increase in rent roll to GBP63.8 million (2015: GBP55.6 million)
— GBP28.8 million profit before tax (2015: GBP36.6 million) after GBP34.1 million debt early repayment costs
Assura transformed
— GBP300 million equity raise in October 2015, net of expenses, to fund acquisitions and lower group gearing
— GBP134 million pipeline of further acquisitions and developments following significant conversion of the pipeline into completed acquisitions
— LTV of 30% emphasises balance sheet strength, providing scope to grow portfolio further within the Company's target gearing range
— GBP181 million repayment of Aviva loans
— GBP200 million new unsecured revolving credit facility agreed
Sector leader in a market that is in critical need of investment
— Growing consensus that primary care must play a bigger role in health provision
— Significant historic underinvestment in primary care space, many GP premises not currently fit for purpose
— The NHS's “General Practice Forward View”, announced in April 2016, further emphasises need for appropriate primary care infrastructure and premises
Well positioned to help alleviate the pressures on primary care infrastructure
— Assura is an established brand and partner of choice to GPs
— Strong balance sheet and capacity to fund more investment
— Efficient, internally managed operating model, with in-house development capability
— Group operates in fragmented market: Portfolio of 321 medical centres compares to a total UK market of close to 9,000 buildings
Further increase in fully covered dividend
— 11% increase in dividend per share paid in the year
— Admitted to FTSE 250
Simon Laffin, Executive Chairman, said:
“The NHS is under great strain at the moment, but there is a growing consensus that more and better primary care is one of the answers to this. We need more GPs, to use them more effectively and with more diagnostic and specialist medical staff around them. We know that patients prefer being cared for by their local GPs and that this is much cheaper for the NHS than those patients going into A&E. Larger, better quality premises are crucial to house these enhanced services. Fortunately the UK has a unique and efficient funding model in the primary care property sector that can deliver substantial additional private capital investment to support this, whilst allowing the Government to control costs.
Assura has a strong balance sheet, the in-house expertise, and excellent relationships with both GPs and the wider health service. We stand ready to help the Government deliver a stronger vibrant primary care service.”
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