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Primary Health Props (PHP)

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Monday 19 March, 2001

Primary Health Props

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

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:


Property                            £m       Occupational Tenant

Bure Park, Bicester, Oxon         0.84       Doctors
Sale, Cheshire                    1.34       Doctors and Pharmacy


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

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


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

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                1999
                                                      £'000    £'000      £'000
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)
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)

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

                                     £                                   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

                               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.

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