Assura posts significant uptick in underlying numbers

Primary care property investor and developer Assura posted a significant uptick in underlying earnings on Wednesday, with underlying profit before tax improving 78% to £28.3m in its preliminary results.

The FTSE 250 firm said that in the year to 31 March, it saw its investment property grow 19.9% in value to more than £1.1bn, with its diluted EPRA net asset value per share growing 3.9% to 45.8p.

Assura’s rent roll grew 14.7% during the year to £63.8m.

Its profit before tax was down, however, to £28.8m from £36.6m, after early debt repayment costs of £34.1m.

Its transformation programme was ongoing during the year, with a £300m equity raise in October to fund acquisitions and lower the group gearing.

Assura said it has a £134m pipeline of further acquisitions and developments following significant conversion of the pipeline into completed acquisitions.

It reported a loan-to-value ratio of 30% which the board said emphasised balance sheet strength, providing scope to grow the portfolio further within the company’s target gearing range.

It repaid £181m of Aviva loans during the year, and agreed a £200m new unsecured revolving credit facility.

“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,” said Assura executive chairman Simon Laffin.

“We need more GPs, to use them more effectively and with more diagnostic and specialist medical staff around them,” he added.

Laffin said patients prefer being cared for by their local GPs, and that it is much cheaper for the NHS than patients going into A&E, with larger and better quality premises crucial to house these enhanced primary care 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,” he explained.

Assura retains a strong balance sheet, Laffin stated, along with in-house expertise and the right relationships with GPs and the wider health service.

“We stand ready to help the government deliver a stronger vibrant primary care service.”