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Primary Health Props (PHP)

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Wednesday 19 September, 2001

Primary Health Props

Final Results

Primary Health Properties PLC
19 September 2001

Primary Health Properties PLC
18 September 2001



                        PRIMARY HEALTH PROPERTIES PLC
           Modern accommodation for the Provision of Primary Health
                                Care Services

                    Preliminary Results for the year ended
                                30 June 2001



Group Financial Highlights

*Dividend increased 14.3% to 8.0p (2000: 7.0p)
*NAV increased 17.6% to 152.5p (2000: 129.7p)
*Portfolio increased to £63.5m (2000: £51.8m)
*Total return per share increased to 30.8p (2000: 19.3p)

Harry Hyman, Managing Director

Enquiries:


Primary Health Properties PLC
Harry Hyman
Managing Director
Tel: 01483 306912
Mobile: 0973 344768

Kate Power - Bell Pottinger Financial
020 7427 7200

Chairman's Statement

I am pleased to report another year of significant progress for your Group.
The total return per ordinary share rose from 19.3p to 30.8p.  Group profit
before taxation for the year ended 30 June 2001 totalled £1,582,000 (2000: £
1,240,000), an increase of 27.6%.

The Board has recommended a final dividend of 4.25p per share which, with the
interim dividend, makes a total of 8.0p per share for the year, an increase of
14.3 % over the total dividend of 7.0p per share paid in respect of the
previous year.

The year end valuation carried out on behalf of the Board by Lambert Smith
Hampton has resulted in a revaluation surplus for the year of £3,415,000. The
net asset value per share has risen from 129.7p to 152.5p, an increase of
17.6%.

During the year the Group has successfully concluded the restructuring of its
lease investment at Baldock and completed a review of rent at one of the
properties purchased in London last year. These contributed significantly to
the revaluation surplus. Other rent reviews completed during the period were
satisfactory in terms of the Group's expectation of achieving annual increases
in rent of between 2.5% and 3.0%.

During the year the Group saw its portfolio of investment properties, finance
leases and properties in the course of development increase to £63.5 million
including revaluation surpluses. In addition the Group had further outstanding
contractual commitments to purchase £9.2 million of property at the balance
sheet date.

At the year end the Group's rent roll had increased from £4,261,000 to £
5,014,000, an increase of 17.7%

In order to finance the continuing expansion of our portfolio the Group
continued to draw down on its existing long term bank lines. At the year end
total debt including the convertible loan stock stood at £37.4 million. We
continued to monitor our interest rate exposure carefully and during the year
hedged out a further £10.0 million of liabilities at an average rate of
5.6325%. Of the £37.4 million of borrowings, £27.0 million (72 %) is at fixed
rates.

Although no shares were repurchased during the period the Board wishes to
retain the option to effect repurchases and accordingly a resolution enabling
the Group to do this is included in the Notice for this year's Annual General
Meeting.



As the Group's portfolio matures we are seeing the benefit of a diversified
portfolio. With our established track record and large database of potential
deals we are on track to increase the Group's portfolio to £100 million at
which point a form of relatively cheaper non-recourse financing should become
available.

99% of our current rent roll is derived directly or indirectly from the NHS
and Pharmacy operators.   Notwithstanding the events of the recent week, given
our existing portfolio and our pipeline of future transactions, we remain
confident in our ability to continue to deliver attractive shareholder
returns.

G A Elliot
Chairman
18 September 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30 June 2001
                                                         30 June      30 June 
                                                            2001         2000
                                                           £'000        £'000

Turnover                                                   4,626        3,691
Administrative expenses                                     (972)        (903)

Operating profit                                           3,654        2,788
Interest receivable                                          115           85
Interest payable                                          (2,187)      (1,633)

Profit on ordinary activities before taxation              1,582        1,240

Corporation tax                                             (158)        (124)

Profit on ordinary activities after taxation               1,424        1,116

Interim dividend of 3.75p per share (2000: 3.4p)            (589)        (534)
Final dividend proposed of 4.25p (2000: 3.6p)               (667)        (565)

Profit retained for the year                                 168           17

Net profit after tax and dividends for the year
retained by:
The Company                                                  140            9
Subsidiary undertakings (after declaring dividends            28            8
                                    of £4,405,000)

                                                             168           17

Earnings per share - basic                                   9.1p         7.1p
                     diluted                                 8.7p         7.0p

Dividends per share (net)                                    8.0p         7.0p

Increase in net asset value                                 22.8p        12.3p

Total return per share                                      30.8p        19.3p


All activities are continuing.



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 30 June 2001
                                                  30 June 2001    30 June 2000
                                                         £'000           £'000

Profit for the financial year                            1,424           1,116
Unrealised surplus on revaluation of properties          3,415           1,912

Total gains relating to the year                         4,839           3,028



CONSOLIDATED BALANCE SHEET
as at 30 June 2001
                                                             At 30        At 30
                                                             June     June 2000
                                                             2001
                                                               £'000     £'000

Fixed Assets
Tangible assets                                               61,028    49,318
Investments: development loans                                    31        10

                                                              61,059    49,328
Current assets
Debtors                                                          539       568
Net investment in finance leases: amounts falling due in       2,490     2,498
more than one year (due within one year: 2001:£265,000;
2000:£259,000)
Cash at bank                                                     338       389

                                                               3,367     3,455

Creditors: amounts falling due within one year                (3,105)   (2,920)

Net current assets                                               262       535

Total assets less current liabilities                         61,321    49,863

Creditors: amounts falling due after
more than one year
Term loan                                                    (33,375)  (25,500)
Convertible loan stock 2016                                   (4,000)   (4,000)

                                                             (37,375)  (29,500)

                                                              23,946    20,363


Capital and reserves
Called up share capital                                        7,850     7,850
Share premium account                                          5,810     5,810
Capital reserve                                                1,618     1,618
Revaluation reserve                                            8,287     4,872
Revenue reserve                                                  381       213

Equity shareholders' funds                                    23,946    20,363

Net asset value per share                                     152.52p   129.70p



CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 June 2001
                                                    30 June 2001  30 June 2000
                                                           £'000         £'000

Net cash inflow from operating activities                  3,828         3,037

Returns on investments and servicing of finance
Interest received                                             43            27
Interest paid                                             (1,845)       (1,545)

                                                          (1,802)       (1,518)

Taxation
UK corporation tax paid                                       (9)           (9)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets                 (8,789)      (10,254)

Equity dividends paid                                     (1,154)       (1,068)

Net cash outflow before financing                         (7,926)       (9,812)

Financing
Term bank loan 2008                                        7,875        10,000

(Decrease)/increase in cash                                 (51)           188

Reconciliation of net cash flow to movement in net
debt

(Decrease)/increase in cash in the period                    (51)          188
Cash inflow from loans                                    (7,875)      (10,000)

Movement in net debt in period                            (7,926)       (9,812)

Net debt at 1 July                                       (29,111)      (19,299)

Net debt at 30 June                                      (37,037)      (29,111)


NOTES:

The above results for the year to 30 June 2001 are audited.

1. Earnings per share
   The calculation of earnings per share is based on the following:
                                                                             
                 As at 30 June 2001                    As at 30 June 2000
                                                                                
                                                       Net profit
             Net profit attributable                 attributable
             to ordinary shareholders   Ordinary      to ordinary     Ordinary
                                          shares      shareholders      shares
                £'000                     number         £'000          number

Basic           1,424                 15,700,000 *       1,116      15,700,000 *
earnings
per share
Option              -                    395,951             -         182,140
conversion**
Convertible       279                  3,478,261             -               -
Loan stock
conversion***

Diluted          1,703                19,574,212         1,116      15,882,140
earnings
per share


  * Weighted average number of Ordinary shares in issue during the year.

**Excess of the total number of potential shares on option exercise over the
number that could be issued at fair value as calculated in accordance with
Financial Reporting Standard No. 14: Earnings per share.

*** Excess of the total number of potential shares on conversion of the loan
stock over the number that could be issued at fair value as calculated in 
accordance with Financial Reporting Standard No. 14: Earnings per share.

2. Notes to the statement of cash flow

    Reconciliation of operating profit to net cash inflow from operating
activities


                                                                2001     2000
                                                               £'000    £'000

Operating profit                                               3,654    2,788
Increase/(decrease) in operating debtors and prepayments          28     (101)
Increase in operating creditors and accruals                     146      350

Net cash inflow from operating activities                      3,828    3,037


3. At the Annual General Meeting, a resolution to declare a final dividend of
4.25p per share will be put to the members and will be paid on 30 November 2001 
to holders registered at close of business on 2 November 2001.

4. The statutory accounts for the year ended 30 June 2001 will be finalised on
the basis of the financial information presented by the Directors in this 
preliminary announcement and will be delivered to Registrar of Companies 
following the Company's Annual General Meeting.  Copies will be sent to 
shareholders shortly and will also be available on request from the Company 
Secretary, J O  Hambro Capital Management Limited, Ground Floor, Ryder Court, 14
Ryder Street, London, SW1Y 6QB.  The Annual General Meeting is to be held on 22 
November 2001 at 2.30pm at Ground Floor, Ryder Court, 14 Ryder Street, London, 
SW1Y 6QB.

5. The financial information set out above does not constitute the Company's
statutory financial statements for the years ended 30 June 2001 or 2000 (but is
derived from and has been prepared on the same basis, as those financial 
statements).  Statutory financial statements for 2000 have been delivered to the
Registrar of Companies, and those for 2001 will be delivered following the 
Company's Annual General Meeting.  The auditors have reported on those financial
statements; their reports were unqualified and did not contain statements under 
section 237 (2) or (3) of the Companies Act 1985.

a d v e r t i s e m e n t