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AH Medical Properties Plc (AHMP)


Tuesday 23 March, 2010

AH Medical Properties Plc

9 month interim results to 31 January 2010

                           AH Medical Properties plc                           

              Interim results for the 9 months to 31 January 2010              

AH Medical Properties plc (PLUS: AHMP, the `Group', or the `Company'), the
primary care property investment company, today announces its results for the 9
months to 31 January 2010.

• Adjusted Net Asset Value per share increased 68% to 45.9p (31 January 2009:

• Net Asset Value per share has increased 67% to 40.8p (31 January 2009: 24.4p)

• Rental revenue increased by 13.5% to £5.0 million (9 months to January 2009:
£4.4 million)

• Revenue surplus increased by 120% to £0.83 million (9 months to January 2009:
£0.38 million)

• Earnings per share from revenue activities increased by 62.5% to 1.3p per
share (January 2009:0.8p)

• Loan to value at 31 January 2010 of 73% (31 January 2009: 82%).

Commenting on the results, Giles Weaver, Chairman of AH Medical Properties plc,
said: "The performance of the portfolio has been extremely robust during one of
the worst periods for commercial property and should benefit from increased
investor appetite for the secure long term income from our high quality purpose
built portfolio. The Board is confident in the future growth potential of the

                                   - Ends -                                    

For further information, please contact:

AH Medical Properties plc                                                 
Bruce Walker, Chief Executive                    Tel: +44 (0) 20 3170 0826
Execution Noble & Company Limited                                         
John Llewellyn-Lloyd                             Tel: +44 (0) 20 7456 9191
Peter Tracey                                                              
Media enquiries:                                                          
Citigate Dewe Rogerson                                                    
Ged Brumby/Kevin Smith                           Tel: +44 (0) 20 7638 9571

AH Medical Properties plc

Interim Accounts for the Nine Month Period to 31 January 2010

Chairman's Statement

At a key time for the Group and its shareholders, in order to ensure that all
shareholders are informed of the most up to date position, the Board has
decided to publish its audited results for the 9 month period ended
31 January 2010. These figures reflect the recent acquisition of the portfolio
of properties from Sapphire Primary Care Developments as well as two other
recent new additions. The strong growth in gross and net assets is a testament
to both the strengthening valuations for our secure long term income as well as
the management team's ability to deliver portfolio growth through both
acquisition and via the strategic relationship with Ashley House plc.
Crucially, there has been a significant improvement in the adjusted net asset
value per share a key measure for such a property company to 45.9p. The trading
earnings per share has also moved ahead to 1.3p for the 9 month period.

The valuation carried out by our portfolio valuers DTZ Debenham Tie Leung
reflects a net initial yield across the portfolio of 5.81% which is some 50
basis points better than the low point for valuations reached in October 2008.
At the current level, the yield is still some 60-80 basis points away from the
high point where some transactions were undertaken by others in our sector in
2006/2007 and therefore this valuation is still some way from the previous
market peak. The Directors believe that AHMP has performed very favourably in
terms of NAV per share when compared with its direct peer companies and the
wider commercial property market over both the medium and the shorter term.


The portfolio value grew by 33% to £114.9m (Oct 09: £95.2m, Jan 09: £86.3m)
whilst net assets per share grew by 67% to 40.8p (Oct 09: 32.6p, Jan 09: 24.4p)
and adjusted net assets per share increased 68% to 45.9p per share (Oct 09:
37.5p, Jan 09: 27.4p). Rents increased by 13.5% to £5.0m (9 months to Jan 09:£
4.4m), trading profit before tax increased 46% to £829k (9 months to Jan 09: £
568k excluding non-recurring finance costs). The earnings from revenue
activities of 1.3p per share grew 62.5% (9months to 31 Jan 09: 0.8p excluding
non-recurring refinance costs).

Whilst there are no loan to value covenants in our debt facilities, the loan to
value has decreased to 73% as at 31 January 2010 from 82% January 2009.


As announced on 26 February 2010, whilst the Board has been working towards a
listing on the Official List of the London Stock Exchange and conversion to
REIT status however has additionally received an approach which may or may not
lead to an offer for the Company. The Board will communicate with shareholders
if an offer is forthcoming.

At present the Board is evaluating whether this approach is likely to lead to a
bid at a sufficiently attractive level to reflect not only the value of the
portfolio now but the growth potential from the pipeline of schemes available
under the asset management agreement first look option with Ashley House plc.

The performance of the portfolio has been extremely robust during one of the
worst periods for commercial property and should benefit from increased
investor appetite for the secure long term income from the high quality purpose
built portfolio. The Board is therefore confident in the future growth
potential of the business.

Giles Weaver


AH Medical Properties plc

23rd March 2010

Independent auditor's report to the members of AH Medical Properties Plc

We have audited the consolidated financial information of AH Medical Properties
Plc for the period ended 31 January 2010 which comprise the consolidated
statement of comprehensive income, the consolidated balance sheet, the
consolidated statement of changes in equity, the consolidated cash flow
statement, the principal accounting policies and the related notes. The
financial reporting framework that has been applied in the preparation of the
consolidated financial information is International Financial Reporting
Standards (IFRSs) as adopted by the European Union.

The purpose for which the consolidated financial information has been prepared
is set out in the basis of preparation section of the principal accounting

This report is made solely to the company's members, as a body. Our audit work
has been undertaken so that we might state to the company's members those
matters we are required to state to them in an auditor's report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company's
members as a body, for our audit work, for this report, or for the opinions we
have formed.

Respective responsibilities of directors and auditors

The directors are responsible for the preparation of the consolidated financial
information and for being satisfied that the consolidated financial information
gives a true and fair view. Our responsibility is to audit the consolidated
financial information in accordance with International Standards on Auditing
(UK and Ireland). Those standards require us to comply with the Auditing
Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the consolidated financial information

An audit involves obtaining evidence about the amounts and disclosures in the
consolidated financial information sufficient to give reasonable assurance that
the consolidated financial information is free from material misstatement,
whether caused by fraud or error. This includes an assessment of: whether the
principal accounting policies are appropriate to the group's circumstances and
have been consistently applied and adequately disclosed; the reasonableness of
significant accounting estimates made by the directors; and the overall
presentation of the consolidated financial information.

Opinion on consolidated financial information

In our opinion the consolidated financial information:

  * gives a true and fair view of the state of the group's affairs as at 31
    January 2010 and of its profit for the period then ended; and
  * have been properly prepared in accordance with IFRS as adopted by the
    European Union.

Grant Thornton UK LLP
Registered Auditor
Chartered Accountants

Consolidated statement of comprehensive income                                 
Historical Financial information for the nine months ended 31 January 2010     
                       Note 9 months to 31 January       9 months to 31 January  
                                        2010                         2009           
                              £000     £000     £000     £000     £000     £000    
                           Revenue  Capital    Total  Revenue  Capital    Total
Revenue                      5,049        -    5,049    4,448        -    4,448
Valuation surplus/               -   12,232   12,232        -  (9,480)  (9,480)
(deficit) on                                                                   
Administrative               (945)    (905)  (1,850)    (835)        -    (835)
Operating profit/            4,104   11,327   15,431    3,613  (9,480)  (5,867)
Finance income                   3        -        3      185        -      185
Non-recurring                    -        -        -    (191)        -    (191)
finance costs                                                                  
Finance costs              (3,278)        -  (3,278)  (3,230)        -  (3,230)
Profit/(loss) before           829   11,327   12,156      377  (9,480)  (9,103)
Income tax expense               -  (1,398)  (1,398)        -       36       36
Profit/(loss) after            829    9,929   10,758      377  (9,444)  (9,067)
tax and total                                                                  
comprehensive income                                                           
and expense for the                                                            
period attributable                                                            
to shareholders                                                                
Basic earnings/       3       1.3p    15.2p    16.5p     0.6p  (14.7)p  (14.1)p
(loss) per share                                                               
Diluted earnings/     3       1.2p    15.1p    16.2p     0.6p  (14.7)p  (14.1)p
(loss) per share                                                               

Consolidated balance sheet                                                     
                                                                At           At          
                                                                31           31          
                                                           January      January     
                                                              2010         2009        
                                                     Note     £000         £000        
Non-current assets                                                             
Investment property                                     4  114,885       86,274
Assets under construction                               4    7,992        3,550
Deferred tax asset                                             109          194
                                                           122,986       90,018
Current assets                                                                 
Work in progress                                             2,428        1,875
Trade and other receivables                                  1,030          728
Cash and cash equivalents                                    2,445        7,661
                                                             5,903       10,264
Current liabilities                                                            
Trade and other payables                                   (6,323)      (2,509)
Net current (liabilities) / assets                           (420)        7,755
Total assets less current liabilities                      122,566       97,773
Non-current liabilities                                                        
Borrowings                                                (92,309)     (79,970)
Deferred tax liabilities                                   (3,483)      (2,085)
Net assets                                                  26,774       15,718
Called up share capital                                          7            6
Share premium account                                       18,579       18,579
Share based payment reserve                                    109          194
Retained earnings                                            8,079      (3,061)
Total equity                                                26,774       15,718
Net asset value:                                                               
Basic net asset value per share                              40.8p        24.4p
* Adjusted net asset value per share                      45.9p    27.4p       

* This shows the effect of removing the deferred tax assets and liabilities

Consolidated statement of changes in equity                                    
                          Share       Share       Share     Retained  Total    
                          capital     premium     based     earnings           
                          £000        £000        £000      £000      £000     
At 30 April 2009          6           18,579      109       (2,221)   16,473   
Issue of share capital    1           -           -         -         1        
Dividends paid            -           -           -         (458)     (458)    
Transactions with owners  7           18,579      109       (2,679)   16,016   
Profit for the period     -           -           -         10,758    10,758   
Total comprehensive       -           -           -         10,758    10,758   
income for the period                                                          
At 31 January 2010        7           18,579      109       8,079     26,774   

                       Share       Share       Share based Retained    Total      
                       capital     premium     payment     earnings               
                       (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
                       £000        £000        £000        £000        £000       
At 30 April 2008       6           18,579      194         6,650       25,429     
Dividends paid         -           -           -           (644)       (644)      
Transactions with      6           18,579      194         6,006       24,785     
Loss for the period    -           -           -           (9,067)     (9,067)    
Total comprehensive    -           -                       (9,067)                
income for the period                          -                       (9,067)    
At 31 January 2009     6           18,579      194         (3,061)     15,718     

Consolidated cash flow statement                                               
                                                         9 months   9 months to
                                                         to         31 January 
                                                         31 January 2009       
                                                         £000       £000       
Profit/(loss) before tax                                 12,156     (9,103)    
Adjustments for:                                                               
Net valuation (surplus)/deficit on property              (12,232)   9,480      
Finance expense                                          3,278      3,230      
Interest income                                          (3)        (185)      
Operating cash flows before movements in working         3,199      3,422      
(Increase)/decrease in trade and other                   (536)      93         
Increase/(decrease) in trade and other payables          2,364      (2,155)    
Cash generated by operations                             5,027      1,360      
Interest paid                                            (3,607)    (3,230)    
Net cash used in operating activities                    1,420      (1,870)    
Investing activities                                                           
Interest received                                        3          185        
Purchase of investment property & work in                (6,100)    (5,760)    
Purchase of subsidiaries not classified as               (12,650)   -          
business combinations                                                          
Net cash used in investing activities                    (18,747)   (5,575)    
Financing activities                                                           
Repayment of borrowings                                  (371)      (819)      
Proceeds from long-term borrowings                       13,898     8,900      
Issue of share capital                                   1          -          
Dividend paid                                            (458)      (644)      
Net cash from financing activities                       13,070     7,437      
Net decrease in cash and cash equivalents                (4,257)    (8)
Cash and cash equivalents at beginning of period         6,702      7,669
Cash and cash equivalents at end of period               2,445      7,661      

 1. Nature of operations and general information
AH Medical Properties plc and subsidiaries' principal activity is property
investment in the United Kingdom. AH Medical Properties plc is the Group's
ultimate parent company. It is incorporated and domiciled in Great Britain. The
address of AH Medical Properties plc's registered office, which is also its
principal place of business, is The Priory, Stomp Road, Burnham,

The Group's financial information consolidates the results, asset and
liabilities of the company and its subsidiaries.

The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in the Group's financial
information, except for the adoption of IAS 1 Presentation of financial
statements (Revised 2007), IFRS 8 operating segments and Improvements to IFRSs.
These are explained further below. The format adopted in the financial
information has been amended from previously published financial statements to
ensure compliance with IAS 1 and IFRS 8.

 2. Basis of preparation
The financial information has been prepared on the going concern basis, under
the historical cost convention, except for the revaluation of investment
property assets, which are carried at fair value.

The Board regularly review the Group's resources to ensure they are sufficient
to continue trading for the foreseeable future. It is therefore considered
appropriate to use the going concern basis to compile the financial

The Group has long term fixed committed debt and no overdraft facility.
Operating cash flow is positive with a healthy running surplus. With £2.4m cash
at bank at 31 January 2010 and further debt commitments to fund future
investments, the Board has a high degree of comfort as to the Group's ability
to continue to operate.

The financial information is presented in pounds sterling because that is the
functional currency of the parent and the presentational currency of the Group.

The adoption of IAS 1 (Revised 2007) does not affect the financial position or
profits of the Group but gives rise to additional disclosures. The measurement
and recognition of the Group's assets, liabilities, income and expenses is
unchanged. IAS 1 (Revised 2007) affects the presentation of owner changes in
equity and introduces a "Statement of comprehensive income". IAS 1 (Revised
2007) also requires presentation of a comparative balance sheet as at the
beginning of the first comparative period, in some circumstances.

The adoption of IFRS 8 has not changed the segments that are disclosed in the
financial information as the segmental information previously disclosed
complies with IFRS 8. Under IFRS 8 the accounting policy for identifying
segments is now based on the internal management reporting information that is
regularly reviewed by the chief operating decision maker.

The adoption of Improvements to IFRSs (effective 1 January 2009) requires the
entity to include investment properties under construction at fair value. Due
to the arms length transaction basis for acquisition from the principle
supplier, Ashley House plc, the directors consider that investment properties
under construction are held at fair value and, as a result, the adoption of
this improvement has not had a material effect on the financial statements. Any
fair value movements between the purchase date of investment properties under
construction and the period end date are considered to be negligible due to the
short time frame in which properties are completed. The standard has been
applied prospectively for the current financial period but, given the above,
would have no material effect had it been applied retrospectively.

 3. Earnings/(Loss) per ordinary share
The calculation of the basic earnings/ (loss) per share is based on the profit/
(loss) attributable to ordinary shareholders divided by the weighted average
number of shares in issue during the period. The options and warrants are
considered anti-dilutive for 2009 as they would decrease the loss per share.

                       9 months to 31 January 2010   9 months to 31 January 2009
                       Profit   Weighted    Per      Loss    Weighted   Per     
                                average     share            average    share   
                       £000     number of   amount   £000    number of  amount  
                                shares      pence            shares     pence   
Basic earnings/(loss)                                                           
per share                                                                       
Profit/(loss)          10,758   65,240,240  16.4     (9,067) 64,406,544 (14.1)  
attributable to                                                                 
ordinary shareholders                                                           
Dilutive effect of                                                              
Options                         945,384      (0.2)       -          -        -
Warrants                        179,125      (0.0)       -          -        -
Diluted earnings/      10,758   666,364,749  16.2     (9,067) 64,406,544 (14.1)
(loss) per share                                                                

 4. Non-current tangible assets
                                 Investment properties Assets under            
                                                               £000        £000       
Valuation and net book amount                                                  
At 1 May 2009                                                88,700       2,914
Additions                                                    12,720       6,318
Transfers from Assets in the course of Construction           1,233     (1,233)
Disposals                                                         -         (7)
Surplus on revaluation                                       12,232           -
At 31 January 2010                                          114,885       7,992

                                                        Investment Assets under
                                                        properties construction
                                                       (unaudited)  (unaudited) 
                                                              £000         £000        
Valuation and net book amount                                                  
At 1 May 2008                                               88,572        4,972
Additions                                                    2,663        3,097
Transfers                                                    4,519      (4,519)
Deficit on revaluation                                     (9,480)            -
At 31 January 2009                                          86,274        3,550

All of the investment properties were income generating during the period.

A valuation of the investment properties, which were all held by the Group at
that time, was performed in January 2010 by DTZ Debenham Tie Leung, in
accordance with accounting policies.

 5. Dividends
Subsequent to the 30 April 2009 year end but prior to the approval of the
financial information, the Directors recommended the payment of a final
dividend of 0.7 pence per share, totalling £451,000. This was paid on 7
September 2009. No dividends have been proposed in connection with the 31
January 2010 period end; however an interim dividend relating to the 6 months
to 31 October 2009 of 0.75 pence per share was paid on 5 February 2010.


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