Assura Plc · OTC:ARSSF
Assura — FY2011 Earnings Presentation
19 slides from Assura's earnings presentation, Mar 31, 2011
Slide 1: Assura Group Limited: Final Results Presentation
Assura Group Limited Transformation to the leading, fully focused primary health property company Final Results Presentation
Slide 2: Transformational Year
Transformational Year Assura fundamentally refocused following three key transactions • Pharmacy business sold today for £39.3m to Gorgemead Limited • £26.2m acquisition of AH Medical Properties PLC in February increased focus on medical properties • Disposal of majority holding in Assura Medical to
Slide 3: Enlarged & high quality property portfolio
Enlarged & high quality property portfolio The leading primary healthcare property developer and investor • Total property assets valued at £519.6 million (at 31 March 2011) • 162 completed medical centres with a value of £477.9m (2010: £328.6m) • Weighted average lease length excellent at 16.5 year
Slide 4: Very strong financial turnaround
Very strong financial turnaround • Revenues up 11.3% to £62.1m (2009/10: £55.8m) • Admin costs down 14.4% and falling • Group operating profit up 240% to £26.2m • Net profit up 185% to £15.1 million • NAV per share (adjusted) 59.8p vs share price of 38.5p • £39.0m cash at year end (31 March 2010: £2
Slide 5: Substantially Improved Results
Substantially Improved Results 2011 2010 £m £m Contribution - Operating profit before central costs Property Investment 20.0 16.6 • Group trading profit up 42% Property Development Overhead (1.1) (1.9) Pharmacy 1.6 0.4 • Property investment gains £9.0m LIFT operations 0.5 0.0 Total 21.0 15.1 (2010:
Slide 6: Sound Balance Sheet
Sound Balance Sheet 2011 2010 £m £m • Total property now £519.6m (2010: Investment Property 464.8 315.9 £361.3m) Under Construction 41.7 31.5 Premises/held for sale/WIP 13.1 14.9 • Continued development adding cost Loan to Assura Medical Investments in LIFT 3.1 6.8 5.5 9.5 effectively to the portfol
Slide 7: Property - Strong Growth
Assura id Property - Strong Growth WWW.assuragroup.co.uk 7
Slide 8: Medical Centre Investments Strong Growth
Medical Centre Investments Strong Growth • £477.9m portfolio, £31.1m rent roll (2010: £22.5m) – average net initial yield 6.05% (2010: 6.02%) with an equivalent yield of 6.22% (2010: 6.46%) • 87% of rents from PCT/GMS; 12% RPI linked • Weighted Average Annual increase in rent from 49 reviews settled
Slide 9: Portfolio Summary
Portfolio Summary • Initial Yield 6.05% (2010: 6.02%) • Rent pa £31.1m (2010: £22.5m) • Equivalent Yield (EY) 6.22% (2010: 6.46%) Capital Value No. of Investment Properties Value £m £0 – £1million 39 (36) £23.1 (£16.8) £1m – £5m 99 (60) £229.8 (£139.9) £5m – £10m 18 (12) £135.0 (£96.2) £10m + 6 (5)
Slide 10: Portfolio Summary
Portfolio Summary • 162 investment properties with 331 Income Type (£/pa) demised leases • Average property value: £2.90m 7% 6% • Largest property: 4.2% of portfolio value (North Ormesby £19.61m) 20% Income/Tenant split: 67% • GPs: 67% • PCTs: 20% GMS PCT Pharmacy Other • Pharmacy: 6% • Other (mainl
Slide 11: Sizeable Development Pipeline
Sizeable Development Pipeline • Three completed in the financial year with an end value of £19.2m • Eight on site at 31 March with an end value of around £42m – Three of which have already completed valued at £21.1m • Identified pipeline beyond - £60m across 20 schemes • Development gain £5.4m in ye
Slide 12: Pharmacy Successful Exit
Assura GJ Pharmacy Successful Exit WWW.assuragroup.co. uk 12
Slide 13: Pharmacy: A Successful Exit
Pharmacy: A Successful Exit • 36 predominantly health centre pharmacies • One opened in year and two opened June 11 • Like for like revenue growth 3.7% • Pipeline of five future stores secured • 50% of GP Care acquired for £100k • Normalised profit £1.6 in year (2010: £0.4m before disposal profits)
Slide 14: Overheads Reduced
Assura GJ Overheads Reduced WWW.assuragroup.co. uk 14
Slide 15: Reduced & Competitive Cost Base
Reduced & Competitive Cost Base • Administration costs reduced by 14.4% (in continuing operations) with further savings targeted – Pall Mall vacated and largely sub let; – Daresbury sub let March 2011; – new head office £80,000 pa for 2.3 years with 9 months rent free (Daresbury was £278,000 pa) • L
Slide 16: Effective Debt Structure
Effective Debt Structure • Net debt of £322.8m • Less than £2m current liability • Property LTV 62.1% (2010: 64.0%) • Assura’s debt competitively priced – <4.0% to 6.4%, NAB at 5.24% to 31 December 2011 • SWAP is neutral when the long term rate rises to 4.59% (currently circa 4.0%) • NAB debt being
Slide 17: Resuming Dividend Payments
Resuming Dividend Payments • Group trading profitably and cash positive • Underlying realised profits of £7.0m (2010: £0.4m) - Profit excluding revaluations other than lease premiums received, exceptionals and depreciation and amortisation • Further dividend declared of 1.25p; interim paid of 1p mak
Slide 18: Strategy
Strategy • Continue to grow the investment portfolio through ongoing property development • Continued investment in high quality primary care premises • Pursuing further acquisition opportunities • Active management, shrinking voids and direct property costs and growing rents • Debt cost being activ
Slide 19: Summary & Outlook
Summary & Outlook • Transformation to a fully focused primary healthcare property developer and investor complete • Net Profit increased 185% from £5.3m to £15.1m • Dividends resumed at 2.25p (2010; £Nil) • NAV, unadjusted for swaps 54.0p (2010: 53.1p) • Business benefitting from streamlining and me