Interim Results

Primary Health Properties PLC 19 March 2001 19 March 2001 PRIMARY HEALTH PROPERTIES PLC Modern accommodation for the Provision of Primary Health Care Services Interim Results for the year ended 31 December 2000 Group Financial Highlights * Interim dividend increased 10% to 3.75p (31 December 1999: 3.4p) * Portfolio increased to £54.4 m (30 June 2000: £ 51.8m) * Earnings per share per share increased by 17% to 4.1p (31 December 1999: 3.5p) 'The first half of our financial year has seen the continued development of our portfolio of properties leased to the National Health Service. We are optimistic that the introduction of the Primary Care Trusts (PCTs) will give rise to enhanced opportunities for your Company.' Harry Hyman, Managing Director Enquiries: Primary Health Properties PLC Harry Hyman Tel: 01483 306912 Managing Director Mobile: 0973 344768 Bell Pottinger Financial Kate Power Tel: 0207 353 9203 Primary Health Properties PLC Financial Statements for the six months ended 31 December 2000 Chairman's Statement Group profit before tax for the six months to 31 December 2000 totalled £ 720,000 (1999: £603,000) an increase of 19%. Profit after taxation was £648,000 (1999: £542,000) an increase of 20%, yielding basic earnings per share of 4.1p (1999: 3.5p) an increase of 17%. The Group undertakes a full valuation of its portfolio at each year-end. The net assets of the Group at 31 December 2000 were 130.1p (basic) (30 June 2000: 129.7p) after providing for the interim dividend of 3.75p declared by the Board (1999: 3.4p). The interim dividend is payable on 30 April 2001 to shareholders on the register at 30 March 2001. The first half of our financial year has seen the continued development of our portfolio of properties leased to the National Health Service. At the period end our paid out portfolio had increased to £54.4 million (£51.9 million of investment properties and £2.5 million of finance leases) with an associated rent roll of £4.5 million representing a running yield of some 9.4% on cost. Of the rent roll 68% was receivable from GPs, 17% from NHS Trusts, 7% from Health Authorities and the residual 8% was largely due from retail pharmacists such as Lloyds Chemists. During the period we have taken delivery of two properties the acquisition costs of which are set out below: Acquisition Cost Property £m Occupational Tenant Bure Park, Bicester, Oxon 0.84 Doctors Sale, Cheshire 1.34 Doctors and Pharmacy £2.18m New commitments entered into during the period totalled £5.1 million representing four new Primary Care centres located at Dundee, Kirkaldy, Penarth and South Cave. Excluding fixed uplifts we have a further £1.1 million of our rent roll where reviews are outstanding in this financial year. On the basis of our initial discussions with our agents, we are optimistic that the increases will be satisfactory. During the period medium term interest rates have decreased considerably with the 5 year swap rate falling to 5.4% at the date of the report. The Group has continued to review its short term funding and alternatives and has benefited from its strategy to delay hedging arrangements. The Group continues to enjoy the benefits of its existing £13 million of swaps that were put in place in 1998. These have a rate of 5.78%. In addition the Group is fully drawn down on its £4 million 7 7/8% convertible loan stock. Our pipeline of transactions is strong. We are optimistic that the introduction of the Primary Care Trusts will give rise to enhanced opportunities for your Company. G A Elliot Chairman 16 March 2001 Consolidated Profit and Loss Account for the six months ended 31 December 2000 Six months Six months ended ended 31 December 31 December 2000 1999 £'000 £'000 Note (unaudited) (unaudited) Turnover 2,208 1,670 Administrative expenses (478) (380) Operating profit 1,730 1,290 Interest receivable 69 25 Interest payable (1,079) (712) Profit on ordinary activities before tax 720 603 Taxation (72) (61) Profit on ordinary activities after tax 648 542 Dividend Interim dividend of 3.75p per share (1999: 3.4p) 4 (589) (534) Retained profit for the period 59 8 Earnings per share - basic 3 4.1p 3.5p - diluted 3 4.0p 3.4p There were no recognised gains and losses other than those passing through the profit and loss account. Consolidated Balance Sheet as at 31 December 2000 At At At 31 30 June 31 December December 2000 2000 1999 £'000 £'000 £'000 Note(unaudited)(audited)(unaudited) Fixed assets Tangible assets 2 51,923 49,328 40,745 Current assets Debtors 192 282 585 VAT recoverable 124 286 417 Net investment in finance leases: amounts falling due in more than one year 2,492 2,498 2,500 Cash at bank and in hand 958 389 740 3,766 3,455 4,242 Creditors: amounts falling due within one year: (3,467) (2,920) (2,045) Net current assets 299 535 2,197 Total assets less current liabilities 52,222 49,863 42,942 Creditors amounts falling due after more than one year: Convertible loan stock 2016 (4,000) (4,000) (4,000) Term loan (27,800) (25,500) (20,500) 31,800 (29,500) (24,500) 20,422 20,363 18,442 Share capital and reserves Called up share capital 7,850 7,850 7,850 Share premium account 5,810 5,810 5,810 Capital reserve 1,618 1,618 1,618 Revaluation reserve 4,872 4,872 2,960 Profit and loss account 272 213 204 Equity shareholders' funds 20,422 20,363 18,442 Consolidated Cash Flow Statement for the six months ended 31 December 2000 Six months ended Year Six months ended ended ended 31 December 30 June 31 December 2000 2000 1999 £'000 £'000 £'000 (unaudited) (audited) (unaudited) Net cash inflow from operating activities 1,968 3,037 890 Returns on investments and servicing of finance Interest received 39 27 21 Interest paid (743) (1,545) (634) (704) (1,518) (613) Taxation UK corporation tax paid (7) (9) - Capital expenditure and financial investment Payments to acquire tangible fixed assets (2,423) (10,254) (4,204) Equity dividends paid (565) (1,068) (534) (1,731) (9,812) (4,461) Financing Term bank loan 2008 2,300 10,000 4,500 Revolving 364 day facility - - 500 2,300 10,000 5,000 Increase in cash 569 188 539 Notes to the Interim Financial Statements 1. The interim financial information has been prepared on the basis of the accounting policies set out in the Group's 2000 Statutory Accounts. The taxation charge is calculated by applying the Directors' best estimate of the annual tax rate to the profits for the period, together with refinements of estimations for prior years. 2. The freehold properties are included at valuation as at 30 June 2000 plus additions at cost since that date. 3. The calculation of basic earnings per share is based on earnings of £ 648,000 (1999: £542,000) and 15,700,000 Ordinary shares (1999: 15,700,000). Diluted earnings per share has been calculated in accordance with Financial Reporting Standard No. 14: Earnings per Share. It is based on earnings of £ 788,000 (1999: £542,000 - no adjustment made in respect of loan stock conversion) and 19,463,707 Ordinary shares (1999: 15,859,486) being the weighted average number of Ordinary shares in issue during the period. Earnings: Weighted Average Number of Ordinary Shares: £ Number Profit on ordinary 648,000 Issued share capital 15,700,000 activities after tax Dilutive effect of options 285,446 Interest saved on Dilutive effect of conversion of loan stock convertible loan stock 3,478,261 (including adjustment for 140,000 tax) 788,000 19,463,000 The dilutive effect of options Under an agreement dated 14 March 1996 between the Company, Nexus Management Services (NMS) and J O Hambro Capital Management Limited (JOHCM), NMS and JOHCM have been granted options to subscribe for a total of 1.6 million shares in the proportion of 960,000 shares to NMS and 640,000 shares to JOHCM at a subscription price of £1 per share. These options are exercisable at any time after publication of the audited accounts of the Company for the financial year ended 30 June in the year immediately preceding the proposed date of exercise provided that, on the basis of those accounts, the net asset value per share (adding back all gross dividends paid on each share) has increased since the date of admission at a rate in excess of the equivalent compound growth rate of 10%, and subject to the Managers remaining advisors at the date of exercise. As at 30 June 2000 these conditions had been met. The dilutive effect of Convertible Loan Stock The Convertible Loan Stock 2016 was issued in units of £250,000. The loan stock units are redeemable at par on 31 March 2016, unless previously converted at the option of the holder. The loan stock is convertible into ordinary shares of 50p each at the rate of one 50p ordinary share for every unit of £1.15 in nominal value of stock tendered for conversion. For the half year to 31 December 2000 the fair value of the units, if converted, exceeded their par value. 4. The interim dividend of £589,000 has been calculated on the issued share capital of 15,700,000 Ordinary shares at 3.75p net per share. 5. The financial information herein does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The financial information for the year 30 June 2000 is based on the statutory accounts for that year. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. Copies of the Interim Report will be posted to shareholders and those on the mailing list as soon as practicable after printing and will also be available on request from the Company's registered office at Ground Floor, Ryder Court, 14 Ryder Street, London SW1Y 6QB.

Companies

Primary Health Properties (PHP)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today