TIDMAGR
RNS Number : 6793W
Assura PLC
16 November 2017
Assura plc
Accelerated investment and strong financial performance
16 November 2017
Assura plc ("Assura"), the leading primary care property
investor and developer, announces its half year results for the six
months to 30 September 2017.
Continued growth of portfolio
-- 76% increase in profit before tax to GBP73.4 million (2016: GBP41.7 million)
-- 8.3% increase in EPRA EPS to 1.3 pence (2016: 1.2 pence)
-- 16.0% increase in investment property to GBP1.6 billion (March 2017: GBP1.3 billion)
-- 7.7% growth in diluted EPRA NAV per share to 53.1 pence (March 2017: 49.3 pence)
-- 11.7% increase in rent roll to GBP83.1 million (March 2017: GBP74.4 million)
Strong balance sheet enabling reduction in cost of debt
-- GBP98 million, gross of expenses, raised from equity placing in June 2017
-- Unsecured revolving credit facility increased to GBP250 million at initial margin of 150bps
-- Weighted average cost of debt reduced by 28bps to 3.78% (March 2017: 4.06%)
-- Further facilities secured post period end
Sector leader in a market that is in significant need of
investment
-- Consensus that primary care must play a bigger role in health provision
-- Significant underinvestment in primary care space, many GP
premises not currently fit for purpose
-- The Naylor report released earlier this year highlighted a
need for significant investment in the NHS estate with support from
the private sector
Well positioned to help alleviate the pressures on primary care
infrastructure
-- Strong pipeline with GBP209 million of acquisitions and developments
-- Current LTV of 36%
-- Scalable, internally managed operating model, with in-house development model
-- Group operates in a highly fragmented market: portfolio of
475 medical centres compares with a total UK market of
approximately 9,000 surgery buildings
Jonathan Murphy, CEO, said: "Our unique business model and
strong, diversified funding structure has allowed us to accelerate
investment, grow our property portfolio and deliver a strong
financial performance with growth in profit before tax, EPRA NAV
and dividends. Primary care remains at the heart of the NHS agenda
and this, together with our acquisitions and development pipeline,
means Assura is well placed to continue improving and providing the
primary health care estate of the future."
For further information, please contact:
Assura plc: Tel: 01925
Jonathan Murphy 420660
Jayne Cottam
Orla Ball
Edelman: Tel: 0203
John Kiely 047 2546
Mav Wynn
Rob Yates
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
Presentation and webcast:
A presentation will be held for analysts and investors on 16
November at 11am London time, with a webcast available from our
website or via the following link:
http://webcasting.brrmedia.co.uk/broadcast/59e8b29d2019c2348e0e7801
Notes to Editors
Assura plc, a constituent of the FTSE 250 and the EPRA* indices,
is a UK REIT and long-term investor in and developer of primary
care property. The company, headquartered in Warrington, works with
GPs, health professionals and the NHS to create innovative property
solutions in order to facilitate delivery of high quality patient
care in the community. At 30 September 2017, Assura's property
portfolio was valued at GBP1,560 million.
Further information is available at www.assuraplc.com
*EPRA is a registered trademark of the European Public Real
Estate Association.
CEO's statement
In the first half of the year, we have continued to grow our
portfolio and improve profitability. During the period, the value
of our investment property increased by 16% to GBP1.6 billion and
we completed GBP164 million of property additions, acquiring and
developing assets in excess of our plan for the year to date.
We have continued to strengthen our financial position. In May,
we increased our revolving credit facility to GBP250 million. The
Group also completed an equity issuance for GBP98 million, which
was significantly oversubscribed, and has been fully deployed to
fund the accelerated growth of our portfolio in the first half of
the year.
Since the period end we have secured a further GBP150 million in
the UK private placement market by issuing eight and 10 year notes
at a blended rate of 3.04% along with a further increase of our
revolving credit facility by GBP50 million to GBP300 million. This
expansion of unsecured facilities gives us the operational
flexibility to fund our pipeline of opportunities as well as
securing further funds at very competitive rates as we look to
bring our weighted average cost of debt down.
Gearing continues to be below our medium term loan-to-value
range of 40% to 50%, thus enabling us to take advantage of the
strong pipeline of investment opportunities. Our robust financial
position means we are able to maintain our progressive dividend
policy.
Financial highlights
Net rental income increased 16% to GBP38.3 million in the period
and profit before tax increased 76% to GBP73.4 million. EPRA EPS
increased 8% to 1.3 pence per share and diluted EPRA net asset
value grew 8% to 53.1 pence per share at the period-end. This
growth in EPRA EPS is a reflection of developments and acquisitions
in the period, our ability to manage, carefully, our internal
costs, further reducing the EPRA Cost Ratio to 11.7% and reductions
in our financing costs following the successful fundraising and
financing initiatives.
This strong financial performance has enabled us to announce an
intended increase of 9% in our dividend from January 2018 to 0.655
pence per share on a quarterly basis, subject to the completion of
the proposed equity raise announced today. A further announcement
formally declaring the January 2018 dividend will be made in due
course.
Market opportunity
In March 2017, Sir Robert Naylor released his detailed review of
the NHS estate, highlighting the essential role for primary care
premises in enabling the policy directives of increasing evening
and weekend access to GP's, encouraging practice networks with
central hubs and therefore increasing the primary care workforce.
The review recommends utilising private sector investment in
supporting GPs and improving the standard of premises.
Assura has an open dialogue with the key stakeholders within the
NHS and Government. We continue to demonstrate our excellent track
record and ability to deliver state of the art primary care
premises within the heart of the community. We are at the forefront
to deliver value for money for the NHS and for the taxpayer as a
third party developer ("3PD"). The ability to deliver these
developments presents limited development risk for Assura with
pre-let arrangements and the opportunity for future rental
growth.
We have continued to both source and complete acquisition
opportunities during the period utilising our proprietary database.
Assura's market share remains modest at approximately 7% and there
are many opportunities for further growth in a highly fragmented,
though specialist, market.
Board appointments
In the past few months we have strengthened our Board and
executive team with two key appointments. Jayne Cottam joined as
CFO and Ed Smith was appointed a Non-Executive Director. Both Jayne
and Ed bring a wealth of experience and fresh perspective to Assura
and I look forward to working with them as we continue to develop
the business and deliver on our strategy.
Outlook
The additional funding provided by the UK private placement and
the increase in the revolving credit facility provides a sound
financial footing for the business. The continued move to unsecured
funding offers a flexible platform for growth.
We have a strong pipeline of GBP126 million of targeted
acquisitions and GBP83 million of development opportunities.
The open market rent review mechanism in our sector provides
income growth whilst recent land and construction cost inflation
provides the potential for future rental growth.
We believe that Assura will continue to provide stable long term
returns and our confidence is reflected in our intention to
increase the quarterly dividend from January 2018.
Jonathan Murphy
CEO
15 November 2017
Business review
For the six months ended 30 September 2017
Portfolio as at 30 September 2017 GBP1,560.0 million (31 March
2017: GBP1,344.9 million)
Our business is based on our investment portfolio of 475
properties. This has a passing rent roll of GBP83.1 million (March
2017: GBP74.4 million), 86% of which is underpinned by the NHS. The
WAULT is 12.8 years and 74% of the rent roll will still be
contracted in 2027.
At 30 September 2017 our portfolio of completed investment
properties was valued at a total of GBP1,527.2 million, including
investment properties held for sale of GBP3.8 million (March 2017:
GBP1,315.3 million and GBPnil), which produced a net initial yield
("NIY") of 4.93% (March 2017: 5.10%). Taking account of potential
lettings of unoccupied space and any uplift to current market rents
on review, our valuers assess the net equivalent yield to be 5.09%
(March 2017: 5.29%). Adjusting this Royal Institution of Chartered
Surveyors standard measure to reflect the advanced payment of
rents, the true equivalent yield is 5.26% (March 2017: 5.47%).
Our EPRA NIY, based on our passing rent roll and latest annual
direct property costs, was 4.96% (March 2017: 5.05%).
Six months Six months
ended ended
30 September 30 September
2017 2016
GBPm GBPm
---------------------- ------------- -------------
Net rental income 38.3 32.9
Valuation movement 50.4 23.4
---------------------- ------------- -------------
Total Property Return 88.7 56.3
---------------------- ------------- -------------
Expressed as a percentage of opening investment property plus
additions, Total Property Return for the six months was 5.9%
compared with 4.7% in 2016.
Our annualised Total Return over the five years to 31 December
2016 as calculated by IPD was 8.9% compared with the IPD All
Healthcare Benchmark of 7.0% over the same period.
The net valuation gain in the six months of GBP50.4 million
represents a 4.29% uplift on a like-for-like basis and movements
relating to properties acquired in the period. The uplift has
arisen due to the downward pressure on yields with increased demand
for assets in the sector. Despite the downward pressure, the NIY on
our assets continues to represent a substantial premium over the
15-year UK gilt which traded at 1.67% at 30 September 2017.
Investment and development activity
We have invested substantially during the period, with this
expenditure split between investments in completed properties,
developments, forward funding projects, extensions and fit-out
costs enabling vacant space to be let as follows:
Six months
ended 30
September
2017
GBPm
------------------------------------------ ----------
Acquisition of completed medical
centres 152.8
Developments/forward funding arrangements 14.7
Like-for-like portfolio (improvements) 1.8
------------------------------------------ ----------
Total capital expenditure 169.3
------------------------------------------ ----------
The bulk of the growth in our investment portfolio has come from
the acquisition of 75 properties for GBP152.8 million during the
period.
Despite the continued delay in NHS approval of new developments,
we have completed three developments during the period (all under
forward funding agreements) with a total development cost of GBP9.5
million. This has added GBP0.5 million to our annual rent roll and
generated a 5.8% yield on cost.
During this period we recorded a revaluation gain of GBP4.2
million in respect of investment property under construction (2016:
net deficit of GBP0.3 million).
Development gains are recorded based on the stage of completion
whilst there has also been uplift reflecting an element of yield
shift, as with the existing portfolio.
As at 30 September 2017, we had five developments on site under
forward funding agreements, with a total committed investment value
of GBP34 million, and a further 12 which we would hope to be on
site shortly (estimated cost of GBP49 million).
Live developments and forward funding arrangements
Estimated
completion Development Costs
date costs to date Size
-------------- ----------- ----------- --------- ---------
Darley Dale Sep-18 GBP2.3m GBP0.6m 772 sq.m
2,069
Durham Apr-18 GBP10.2m GBP6.5m sq.m
4,389
Middlesbrough Jan-18 GBP18.3m GBP12.3m sq.m
Swansea Jan-18 GBP2.0m GBP1.2m 979 sq.m
Wivenhoe Oct-17 GBP1.5m GBP1.1m 628 sq.m
-------------- ----------- ----------- --------- ---------
Portfolio management
We have continued to deliver rental growth and have successfully
concluded 88 rent reviews during the six months to generate a
weighted average annual rent increase of 1.81% (year to March 2017:
1.57%) on those properties. Our portfolio benefits from a 27%
weighting in fixed, Retail Price Index ("RPI") and other uplifts
which generated an average uplift of 2.84% during the period. The
majority of our portfolio is subject to open market reviews and
these have generated an average uplift of 0.83% during the
period.
We have secured nine new tenancies with an annual rent roll of
GBP0.2 million, in addition to four lease regears (rent of GBP0.2
million) and three extensions to existing buildings (rent of GBP0.3
million). Our EPRA Vacancy Rate was 2.1% (March 2017: 2.1%).
Administrative expenses
The Group analyses cost performance by reference to our EPRA
Cost Ratios (including and excluding direct vacancy costs) which
were 11.7% and 11.5% respectively (2016: 13.5% and 12.3%).
We also measure our operating efficiency as the proportion of
administrative costs to the average gross investment property
value. This ratio during the period was 0.25% (2016: 0.29%) and
administrative costs stood at GBP3.6 million (2016: GBP3.4
million).
Financing
In May 2017, we extended the revolving credit facility to GBP250
million. The terms were unchanged, being unsecured and at an
initial margin of 150 basis points above LIBOR, subject to
leverage. In October 2017, this was further extended to GBP300
million.
In June 2017, we completed a GBP98.4 million, gross of expenses,
equity raise via a placing of approximately 164 million shares.
In October 2017, we announced the issuance of GBP150 million of
privately placed notes in two tranches with maturities of eight and
10 years.
The weighted average coupon is 3.04% and the notes are
unsecured.
At 30 September 2017, we had undrawn facilities and cash of
GBP101.9 million.
Financing statistics 30/09/2017 31/03/2017
-------------------------------- ---------- ----------
Net debt GBP569.1m GBP499.6m
Weighted average debt maturity 7.9 years 8.7 years
Weighted average interest rate 3.78% 4.06%
% of debt at fixed/capped rates 71% 81%
Interest cover(1) 308% 296%
LTV 36% 37%
-------------------------------- ---------- ----------
1. Interest cover is the number of times net interest payable is
covered by EPRA earnings before net interest.
Our loan to value ("LTV") ratio currently stands at 36%, which
is lower than our target range of 40%-50% and will increase as we
invest in our pipeline in the short to medium term (where this is
funded by debt facilities). 71% of the debt facilities are fixed
with a weighted average debt maturity of 7.9 years compared with a
WAULT of 12.8 years, which highlights the security of the cash
flows of the business.
Details of the facilities and their covenants are set out in
Note 11 to the accounts.
Net finance costs presented through EPRA earnings in the
six-month period amounted to GBP11.2 million (2016: GBP9.7
million).
Alternative Performance Measures ("APMs")
The financial performance for the period is reported including a
number of APMs (financial measures not defined under IFRS). We
believe that including these alongside IFRS measures provides
additional information to help understand the financial performance
for the period and calculations with reconciliations back to
reported IFRS measures are included where possible.
Profit before tax
Profit before tax for the period was GBP73.4 million (2016:
GBP41.7 million). The increase can primarily be attributed to the
increased valuation gain on investment property and the higher net
rental income following additions to the portfolio.
EPRA earnings
Six months Six months
ended 30 ended
September 30 September
2017 2016
GBPm GBPm
---------------------------------- ---------- -------------
Net rental income 38.3 32.9
Administrative expenses (3.6) (3.4)
Net finance costs (11.2) (9.7)
Share-based payments and taxation (0.2) -
---------------------------------- ---------- -------------
EPRA earnings 23.3 19.8
---------------------------------- ---------- -------------
The movement in EPRA earnings can be summarised as follows:
GBPm
----------------------------------- -----
Six months ended 30 September 2016 19.8
Net rental income 5.4
Administrative expenses (0.2)
Net finance costs (1.5)
Share-based payments and taxation (0.2)
----------------------------------- -----
Six months ended 30 September 2017 23.3
----------------------------------- -----
EPRA earnings has grown 18% to GBP23.3 million in the six months
to 30 September 2017 reflecting the property acquisitions completed
and the reduced finance costs from reducing our LTV and the average
cost of borrowings.
Earnings per share
The basic earnings per share ("EPS") on profit for the period
was 4.2 pence (2016: 2.5 pence).
EPRA EPS, which excludes the net impact of valuation movements
and gains on disposal, was 1.3 pence (2016: 1.2 pence).
Based on calculations completed in accordance with IAS 33,
share-based payment schemes are currently expected to be dilutive
to EPS, with 0.2 million new shares expected to be issued. The
dilution is not material as illustrated in the table below:
EPS measure Basic Diluted
----------------------- ----- -------
Profit for six months 4.2p 4.2p
EPRA 1.3p 1.3p
----------------------- ----- -------
Dividends
Total dividends settled in the six months to 30 September 2017
were GBP19.9 million or 1.2 pence per share (2016: 1.1 pence per
share). GBP3.3 million of this was satisfied through the issuance
of shares via scrip.
As a REIT with requirement to distribute 90% of taxable profits
(Property Income Distribution, "PID"), the Group expects to pay out
as dividends at least 90% of recurring cash profits. Both dividends
paid in the first half of the year were normal dividends (non-PID)
with an associated tax credit, as a result of brought forward tax
losses and available capital allowances. The October 2017 dividend
has subsequently been paid as a PID and future dividends will be a
mix of PID and normal dividends as required.
The table below illustrates our cash flows over the period:
Six months Six months
ended ended
30 September 30 September
2017 2016
GBPm GBPm
---------------------------------- ------------- -------------
Opening cash 23.5 44.3
Net cash flow from operations 20.3 15.6
Dividends paid (16.5) (15.8)
Investment:
Property acquisitions (155.3) (82.7)
Development expenditure (14.8) (10.5)
Sale of properties 1.1 1.1
Other - (0.4)
Financing:
Net proceeds from equity issuance 96.1 -
Net borrowings movement 67.5 76.1
---------------------------------- ------------- -------------
Closing cash 21.9 27.7
---------------------------------- ------------- -------------
Net cash flow from operations differs from EPRA earnings due to
movements in working capital balances.
Net assets
Diluted EPRA NAV movement
Pence per
GBPm share
---------------------------------- ------ ---------
Diluted EPRA NAV at 31 March 2017 817.5 49.3
EPRA earnings 23.3 1.3
Capital (revaluations and capital
gains) 50.1 2.9
Dividends (19.9) (1.2)
Shares issued 99.5 0.8
Other 0.2 -
---------------------------------- ------ ---------
Diluted EPRA NAV at 30 September
2017 970.7 53.1
---------------------------------- ------ ---------
Our Total Accounting Return per share for the six months ended
30 September 2017 is 9.9% of which 1.20 pence per share (2.4%) has
been distributed to shareholders and 3.7 pence per share (7.5%) is
the movement on EPRA NAV.
Portfolio analysis by capital value
Total Total
Number value value
of properties GBPm %
--------- -------------- ------- ------
>GBP10m 25 372.0 24
GBP5-10m 55 370.3 24
GBP1-5m 284 711.7 47
<GBP1m 111 73.2 5
--------- -------------- ------- ------
475 1,527.2 100
--------- -------------- ------- ------
Portfolio analysis by region
Total Total
Number value value
of properties GBPm %
--------- -------------- ------- ------
North 166 616.3 40
South 158 459.2 30
Midlands 82 301.8 20
Scotland 22 47.7 3
Wales 47 102.2 7
--------- -------------- ------- ------
475 1,527.2 100
--------- -------------- ------- ------
Portfolio analysis by tenant covenant
Total Total
rent rent
roll roll
GBPm %
--------- ----- -----
GPs 57.0 69
NHS body 14.2 17
Pharmacy 6.7 8
Other 5.2 6
--------- ----- -----
83.1 100
--------- ----- -----
EPRA performance measures
The European Public Real Estate Association ("EPRA") has
published Best Practices Recommendations with the aim of improving
the transparency, comparability and relevance of financial
reporting with the real estate sector across Europe. This section
details the rationale for each performance measure as well as our
performance against each measure.
Summary table
Six months Six months
ended ended
30 September 30 September
2017 2016
---------------------------------- ------------- -------------
EPRA EPS (p) 1.3 1.2
EPRA Cost Ratio (including direct
vacancy costs) (%) 11.7 13.5
EPRA Cost Ratio (excluding direct
vacancy costs) (%) 11.5 12.3
---------------------------------- ------------- -------------
30/09/2017 31/03/2017
------------------------- ---------- ----------
EPRA NAV (p) 53.1 49.3
EPRA NNNAV (p) 49.5 44.7
EPRA NIY (%) 4.96 5.05
EPRA "topped-up" NIY (%) 4.96 5.05
EPRA Vacancy Rate (%) 2.1 2.1
------------------------- ---------- ----------
EPRA EPS
six months ended 30 September 2017: 1.3p
Six months ended 30 September 2016: 1.2p
Diluted EPRA EPS (p)
six months ended 30 September 2017: 1.3p
Six months ended 30 September 2016: 1.2p
Definition
Earnings from operational activities.
Purpose
A key measure of a company's underlying operating results and an
indication of the extent to which current dividend payments are
supported by earnings.
The calculation of EPRA EPS and diluted EPRA EPS are shown in
Note 7 to the accounts.
EPRA NAV
30/09/2017: 53.1p
31/03/2017: 49.3p
Definition
NAV adjusted to include properties and other investment
interests at fair value and to exclude certain items not expected
to crystallise in a long-term investment property business.
Presented on a diluted basis.
Purpose
Makes adjustments to IFRS NAV to provide stakeholders with the
most relevant information on the fair value of the assets and
liabilities with a true real estate investment company with a
long-term investment strategy.
The calculation of EPRA NAV is shown in Note 8 to the
accounts.
EPRA NNNAV
30/09/2017: 49.5p
31/03/2017: 44.7p
Definition
EPRA NAV adjusted to include the fair values of (i) financial
instruments, (ii) debt and (iii) deferred taxes.
Purpose
Makes adjustments to EPRA NAV to provide stakeholders with the
most relevant information on the current fair value of all the
assets and liabilities within a real estate company.
The calculation of EPRA NNNAV is shown in Note 8 to the
accounts.
EPRA NIY
30/09/2017: 4.96%
31/03/2017: 5.05%
EPRA "topped-up" NIY
30/09/2017: 4.96%
31/03/2017: 5.05%
Definition - EPRA NIY
Annualised rental income based on the cash rents passing at the
balance sheet date, less non-recoverable property operating
expenses, divided by the market value of the property, increased
with (estimated) purchasers' costs.
Definition - EPRA "topped-up" NIY
This measure incorporates an adjustment to the EPRA NIY in
respect of the expiration of rent-free periods (or other unexpired
lease incentives such as discounted rent periods and step
rents).
Purpose
A comparable measure for portfolio valuations, this measure
should make it easier for investors to judge for themselves how the
valuation compares with that of portfolios in other listed
companies.
30/09/2017 31/03/2017
GBPm GBPm
---------------------------------------- ---------- ----------
Investment property 1,560.0 1,344.9
Less developments (27.1) (20.2)
---------------------------------------- ---------- ----------
Completed investment property portfolio 1,532.9 1,324.7
Allowance for estimated purchasers'
costs 99.0 85.4
---------------------------------------- ---------- ----------
Gross up completed investment property
- B 1,631.9 1,410.1
---------------------------------------- ---------- ----------
Annualised cash passing rental
income 83.1 74.4
Annualised property outgoings (2.2) (3.2)
---------------------------------------- ---------- ----------
Annualised net rents - A 80.9 71.2
Notional rent expiration of rent-free
periods or other incentives - -
---------------------------------------- ---------- ----------
Topped-up annualised rent - C 80.9 71.2
---------------------------------------- ---------- ----------
EPRA NIY - A/B (%) 4.96 5.05
EPRA "topped-up" NIY - C/B (%) 4.96 5.05
---------------------------------------- ---------- ----------
EPRA Vacancy Rate
30/09/2017: 2.1%
31/03/2017: 2.1%
Definition
Estimated rental value ("ERV") of vacant space divided by ERV of
the whole portfolio.
Purpose
A "pure" (%) measure of investment property space that is
vacant, based on ERV.
30/09/2017 31/03/2017
------------------------------------ ---------- ----------
ERV of vacant space (GBPm) 1.8 1.6
ERV of completed property portfolio
(GBPm) 85.7 76.7
EPRA Vacancy Rate (%) 2.1 2.1
------------------------------------ ---------- ----------
EPRA Cost Ratios (including direct vacancy costs)
Six months ended 30 September 2017: 11.7%
Six months ended 30 September 2016: 13.5%
EPRA Cost Ratios (excluding direct vacancy costs)
Six months ended 30 September 2017: 11.5%
Six months ended 30 September 2016: 12.3%
Definition
Administrative and operating costs (including and excluding
direct vacancy costs) divided by gross rental income.
Purpose
A key measure to enable meaningful measurement of the changes in
a company's operating costs.
Six months Six months
ended 30 ended 30
September September
2017 2016
GBPm GBPm
------------------------------------- ---------- ----------
Direct property costs 1.1 1.5
Administrative expenses 3.6 3.4
Share-based payment costs 0.2 -
Net service charge costs/fees (0.1) (0.1)
Exclude:
Ground rent costs (0.2) (0.2)
------------------------------------- ---------- ----------
EPRA Costs (including direct vacancy
costs) - A 4.6 4.6
Direct vacancy costs (0.1) (0.4)
------------------------------------- ---------- ----------
EPRA Costs (excluding direct vacancy
costs) - B 4.5 4.2
------------------------------------- ---------- ----------
Gross rental income less ground
rent costs (per IFRS) 39.2 34.2
------------------------------------- ---------- ----------
Gross rental income - C 39.2 34.2
------------------------------------- ---------- ----------
EPRA Cost Ratio (including direct
vacancy costs) - A/C 11.7 13.5
EPRA Cost Ratio (excluding direct
vacancy costs) - B/C 11.5 12.3
------------------------------------- ---------- ----------
Interim condensed consolidated income statement
For the six months ended 30 September 2017
Six months ended Six months ended
30 September 2017 30 September 2016
Unaudited Unaudited
Capital
Capital and
EPRA and other Total EPRA other Total
Note GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ---- ------- ----------- ------- ------ -------- -------
Gross rental
and related
income 39.4 - 39.4 34.4 - 34.4
Property operating
expenses (1.1) - (1.1) (1.5) - (1.5)
-------------------- ---- ------- ----------- ------- ------ -------- -------
Net rental
income 38.3 - 38.3 32.9 - 32.9
Administrative
expenses (3.6) - (3.6) (3.4) - (3.4)
Revaluation
gains 9 - 50.4 50.4 - 23.4 23.4
Share-based
payment charge (0.2) - (0.2) - - -
Loss on sale
of property - (0.3) (0.3) - - -
Finance revenue - - - 0.1 - 0.1
Finance costs 5 (11.2) - (11.2) (9.8) (1.5) (11.3)
-------------------- ---- ------- ----------- ------- ------ -------- -------
Profit before
taxation 23.3 50.1 73.4 19.8 21.9 41.7
-------------------- ---- ------- ----------- ------- ------ -------- -------
Taxation 6 - - - - - -
-------------------- ---- ------- ----------- ------- ------ -------- -------
Profit for
the period
attributable
to equity
holders of
the parent 23.3 50.1 73.4 19.8 21.9 41.7
-------------------- ---- ------- ----------- ------- ------ -------- -------
Earnings per
share
EPS - basic
& diluted 7 4.2p 2.5p
EPRA EPS -
basic & diluted 7 1.3p 1.2p
-------------------- ---- ------- ----------- ------- ------ -------- -------
There were no items of other comprehensive income or expense and
therefore the profit for the period also represents the Group's
total comprehensive income. All income derives from continuing
operations.
Interim condensed consolidated balance sheet
As at 30 September 2017
30 September 31 March
2017 Unaudited 2017 Audited
Note GBPm GBPm
---------------------------------------------------------- ---- --------------- -------------
Non-current assets
Investment property 9 1,560.0 1,344.9
Property, plant and equipment 0.4 0.4
Deferred tax asset 0.5 0.5
---------------------------------------------------------- ---- --------------- -------------
1,560.9 1,345.8
---------------------------------------------------------- ---- --------------- -------------
Current assets
Cash, cash equivalents and restricted
cash 21.9 23.5
Trade and other receivables 13.7 9.4
Property assets held for sale 9 4.8 0.9
---------------------------------------------------------- ---- --------------- -------------
40.4 33.8
---------------------------------------------------------- ---- --------------- -------------
Total assets 1,601.3 1,379.6
---------------------------------------------------------- ---- --------------- -------------
Current liabilities
Trade and other payables 15.3 16.4
Borrowings 11 4.4 4.3
Deferred revenue 10 17.9 16.3
---------------------------------------------------------- ---- --------------- -------------
37.6 37.0
---------------------------------------------------------- ---- --------------- -------------
Non-current liabilities
Borrowings 11 583.6 515.8
Obligations due under finance
leases 3.0 3.0
Deferred revenue 10 5.9 5.8
---------------------------------------------------------- ---- --------------- -------------
592.5 524.6
---------------------------------------------------------- ---- --------------- -------------
Total liabilities 630.1 561.6
---------------------------------------------------------- ---- --------------- -------------
Net assets 971.2 818.0
---------------------------------------------------------- ---- --------------- -------------
Capital and reserves
Share capital 12 182.8 165.5
Share premium 328.6 246.1
Merger reserve 231.2 231.2
Reserves 228.6 175.2
---------------------------------------------------------- ---- --------------- -------------
Total equity 971.2 818.0
---------------------------------------------------------- ---- --------------- -------------
NAV per Ordinary Share - basic 8 53.1p 49.4p
- diluted 8 53.1p 49.3p
EPRA NAV per Ordinary Share -
basic 8 53.1p 49.4p
- diluted 8 53.1p 49.3p
---------------------------------------------------------- ---- --------------- -------------
The interim condensed consolidated financial statements were
approved at a meeting of the Board of Directors held on 15 November
2017 and signed on its behalf by:
Jonathan Murphy Jayne Cottam
CEO CFO
Interim condensed consolidated statement of changes in
equity
For the six months ended 30 September 2017
Share Own shares Share Merger Total
capital held premium reserve Reserves equity
Note GBPm GBPm GBPm GBPm GBPm GBPm
--------------------- ---- -------- ---------- -------- -------- -------- -------
1 April 2016 163.8 (0.6) 241.9 231.2 118.0 754.3
-------- ---------- -------- -------- -------- -------
Profit attributable
to equity
holders - - - - 41.7 41.7
-------- ---------- -------- -------- -------- -------
Total comprehensive
income - - - - 41.7 41.7
Dividend 14 0.4 - 1.8 - (18.0) (15.8)
Employee
share-based
incentives 0.8 0.6 - - (1.1) 0.3
--------------------- ---- -------- ---------- -------- -------- -------- -------
30 September
2016 165.0 - 243.7 231.2 140.6 780.5
--------------------- ---- -------- ---------- -------- -------- -------- -------
Profit attributable
to equity
holders - - - - 53.6 53.6
-------- ---------- -------- -------- -------- -------
Total comprehensive
income - - - - 53.6 53.6
Dividend 14 0.5 - 2.4 - (19.0) (16.1)
--------------------- ---- -------- ---------- -------- -------- -------- -------
31 March
2017 165.5 - 246.1 231.2 175.2 818.0
--------------------- ---- -------- ---------- -------- -------- -------- -------
Profit attributable
to equity
holders - - - - 73.4 73.4
-------- ---------- -------- -------- -------- -------
Total comprehensive
income - - - - 73.4 73.4
Issue of
Ordinary
Shares 16.4 - 82.0 - - 98.4
Issue costs - - (2.3) - - (2.3)
Dividend 14 0.6 - 2.8 - (19.9) (16.5)
Employee
share-based
incentives 0.3 - - - (0.1) 0.2
--------------------- ---- -------- ---------- -------- -------- -------- -------
30 September
2017 182.8 - 328.6 231.2 228.6 971.2
--------------------- ---- -------- ---------- -------- -------- -------- -------
Interim condensed consolidated statement of cash flow
For the six months ended 30 September 2017
Six months Six months
ended ended
30 September 30 September
2017 2016
Unaudited Unaudited
GBPm GBPm
--------------------------------------- ------------- -------------
Operating activities
Rent received 36.4 33.2
Interest paid and similar charges (11.1) (9.6)
Fees received 0.4 0.4
Interest received - 0.1
Cash paid to suppliers and employees (5.4) (8.5)
--------------------------------------- ------------- -------------
Net cash inflow from operating
activities 20.3 15.6
--------------------------------------- ------------- -------------
Investing activities
Purchase of investment property (155.3) (82.7)
Development spend (14.8) (10.5)
Investment in property, plant
and equipment - (0.4)
Proceeds from sale of property 1.1 1.1
--------------------------------------- ------------- -------------
Net cash outflow from investing
activities (169.0) (92.5)
--------------------------------------- ------------- -------------
Financing activities
Issue of Ordinary Shares 98.4 -
Issue costs paid on issuance
of Ordinary Shares (2.3) -
Dividends paid (16.5) (15.8)
Repayment of loan (2.1) (57.0)
Long-term loans drawn down 70.0 135.0
Loan issue costs (0.4) (1.9)
--------------------------------------- ------------- -------------
Net cash inflow from financing
activities 147.1 60.3
--------------------------------------- ------------- -------------
Decrease in cash and cash equivalents (1.6) (16.6)
--------------------------------------- ------------- -------------
Opening cash and cash equivalents 23.5 44.3
--------------------------------------- ------------- -------------
Closing cash and cash equivalents 21.9 27.7
--------------------------------------- ------------- -------------
Notes to the interim condensed consolidated accounts
For the six months ended 30 September 2017
1. Corporate information
The Interim Condensed Consolidated Accounts of the Group for the
six months ended 30 September 2017 were authorised for issue in
accordance with a resolution of the Directors on 15 November
2017.
Assura plc ("Assura") is incorporated in England and Wales and
the Company's Ordinary Shares are listed on the London Stock
Exchange.
As of 1 April 2013, the Group has elected to be treated as a UK
REIT. See Note 6 for further details.
Copies of this statement are available from the website at
www.assuraplc.com.
2. Basis of preparation
The Interim Condensed Consolidated Accounts for the six months
ended 30 September 2017 have been prepared in accordance with IAS
34 Interim Financial Reporting. These accounts cover the six-month
accounting period from 1 April 2017 to 30 September 2017 with
comparatives for the six-month accounting period from 1 April 2016
to 30 September 2016, or 31 March 2017 for balance sheet
amounts.
The Interim Condensed Consolidated Accounts do not include all
the information and disclosures required in the Annual Report, and
should be read in conjunction with those in the Group's Annual
Report as at 31 March 2017 which are prepared in accordance with
IFRSs as adopted by the European Union.
The accounts are presented in pounds sterling rounded to the
nearest 0.1 million unless specified otherwise.
The accounts are prepared on a going concern basis.
3. Accounts
The results for the six months to 30 September 2017 and to 30
September 2016 are unaudited. The interim accounts do not
constitute statutory accounts. The financial information for the
year ended 31 March 2017 does not constitute the Company's
statutory accounts for that year, but is derived from those
accounts. Statutory accounts have been delivered to the Registrar
of Companies. The auditors reported on those accounts: their report
was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under s498(2) or (3) of
the Companies Act 2006.
4. New standards, interpretations and amendments thereof,
adopted by the Group
The accounting policies adopted in the preparation of the
Interim Condensed Consolidated Accounts are consistent with those
followed in the preparation of the Group's Annual Report for the
year ended 31 March 2017. The Group is not expecting new and
proposed changes in accounting standards endorsed by the EU to have
a material impact on reported numbers in future periods.
5. Finance costs
Six months Six months
ended ended
30 September 30 September
2017 2016
GBPm GBPm
-------------------------------------- ------------- -------------
Interest payable 11.3 9.7
Interest capitalised on developments (0.5) (0.2)
Amortisation of loan issue costs 0.4 0.3
-------------------------------------- ------------- -------------
Finance costs presented through
EPRA earnings 11.2 9.8
Write off of loan issue costs - 1.5
-------------------------------------- ------------- -------------
Total finance costs 11.2 11.3
-------------------------------------- ------------- -------------
6. Taxation on profit on ordinary activities
Six months Six months
ended ended
30 September 30 September
2017 2016
GBPm GBPm
-------------------------------------- ------------- -------------
Tax charged in the income statement
Deferred tax:
Origination and reversal of temporary
differences - -
-------------------------------------- ------------- -------------
Total tax charge - -
-------------------------------------- ------------- -------------
The Group elected to be treated as a UK REIT with effect from 1
April 2013. The UK REIT rules exempt the profits of the Group's
property rental business from corporation tax. Gains on properties
are also exempt from tax, provided they are not held for trading or
sold in the three years post completion of development. The Group
will otherwise be subject to corporation tax at 19%.
Group tax charges relate to its non-property income. As the
Group has sufficient brought forward losses no tax is due in
relation to the current or prior period.
As a REIT, the Group is required to pay Property Income
Distributions ("PIDs") equal to at least 90% of the Group's rental
profit calculated by reference to tax rules rather than accounting
standards. To remain as a UK REIT there are a number of conditions
to be met in respect of the principal company of the Group, the
Group's qualifying activities and the balance of business.
7. Earnings per Ordinary Share
EPRA EPRA
Earnings earnings Earnings earnings
2017 2017 2016 2016
GBPm GBPm GBPm GBPm
----------------------------- -------------- -------------- -------------- --------------
Profit for the period
from continuing operations 73.4 73.4 41.7 41.7
----------------------------- -------------- -------------- -------------- --------------
Revaluation gains (50.4) (23.4)
Loss on sale of property 0.3 -
Write off of loan issue
costs - 1.5
----------------------------- -------------- -------------- -------------- --------------
EPRA earnings 23.3 19.8
----------------------------- -------------- -------------- -------------- --------------
Weighted average number
of shares in issue -
basic 1,748,149,201 1,748,149,201 1,641,793,597 1,641,793,597
Potential dilutive impact
of share options 173,009 173,009 3,243,291 3,243,291
----------------------------- -------------- -------------- -------------- --------------
Weighted average number
of shares in issue -
diluted 1,748,322,210 1,748,322,210 1,645,036,888 1,645,036,888
----------------------------- -------------- -------------- -------------- --------------
EPS/EPRA EPS - basic
& diluted 4.2p 1.3p 2.5p 1.2p
----------------------------- -------------- -------------- -------------- --------------
The current estimated number of shares over which nil-cost
options may be issued to participants is 0.2 million.
8. Net asset value per Ordinary Share
EPRA EPRA
NAV NAV NAV NAV
30/09/2017 30/09/2017 31/03/2017 31/03/2017
GBPm GBPm GBPm GBPm
--------------------------- -------------- -------------- -------------- --------------
Net assets 971.2 971.2 818.0 818.0
--------------------------- -------------- -------------- -------------- --------------
Deferred tax (0.5) (0.5)
--------------------------- -------------- -------------- -------------- --------------
EPRA NAV 970.7 817.5
--------------------------- -------------- -------------- -------------- --------------
Number of shares in
issue 1,827,642,764 1,827,642,764 1,655,040,993 1,655,040,993
Potential dilutive impact
of share options (Note
7) 173,009 173,009 3,243,291 3,243,291
--------------------------- -------------- -------------- -------------- --------------
Diluted number of shares
in issue 1,827,815,773 1,827,815,773 1,658,284,284 1,658,284,284
--------------------------- -------------- -------------- -------------- --------------
NAV per Ordinary Share
- basic 53.1p 53.1p 49.4p 49.4p
NAV per Ordinary Share
- diluted 53.1p 53.1p 49.3p 49.3p
--------------------------- -------------- -------------- -------------- --------------
EPRA EPRA
NNNAV NNNAV
30/09/2017 31/03/2017
GBPm GBPm
--------------------------------------- ----------- -----------
EPRA NAV 970.7 817.5
Mark to market of fixed rate debt (65.5) (77.7)
--------------------------------------- ----------- -----------
EPRA NNNAV 905.2 739.8
--------------------------------------- ----------- -----------
EPRA NNNAV per Ordinary Share - basic 49.5p 44.7p
--------------------------------------- ----------- -----------
The EPRA measures set out above are in accordance with the Best
Practices Recommendations of the European Property Real Estate
Association dated November 2016.
Mark to market adjustments represent fair value and have been
provided by the counterparty as appropriate or by reference to the
quoted fair value of financial instruments.
9. Property assets
Investment property and investment property under construction
("IPUC")
Investment properties are stated at fair value, as determined
for the Company by Savills Commercial Limited and Jones Lang
LaSalle as at 30 September 2017. The properties have been valued
individually and on the basis of open market value in accordance
with RICS valuation - Professional Standards 2017 ("the Red
Book").
Initial yields mainly range from 4.25% to 4.75% (March 2017:
4.40% to 5.00%) for prime units, increasing up to 8.00% (March
2017: 8.00%) for older units with shorter unexpired lease terms.
For properties with weaker tenants and poorer units, the yields
range from 6.00% to over 8.00% (March 2017: 6.00% to over 8.00%)
and higher for those very close to lease expiry or those
approaching obsolescence.
A 0.25% shift of valuation yield would have approximately a
GBP81.7 million (March 2017: GBP68.1 million) impact on the
investment property valuation:
Investment IPUC Total Investment IPUC Total
30/09/17 30/09/17 30/09/17 31/03/17 31/03/17 31/03/2017
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------- ---------- --------- --------- ---------- --------- -----------
Opening fair
value 1,321.7 20.2 1,341.9 1,094.9 11.5 1,106.4
Additions:
---------- --------- --------- ---------- --------- -----------
- acquisitions 152.8 - 152.8 155.6 - 155.6
- improvements 1.8 - 1.8 2.4 - 2.4
---------- --------- --------- ---------- --------- -----------
154.6 - 154.6 158.0 - 158.0
Development
costs - 14.7 14.7 - 20.9 20.9
Transfers 11.4 (11.4) - 14.0 (14.0) -
Transfer (to)/from
assets held
for sale (3.8) (0.2) (4.0) - 0.8 0.8
Capitalised
interest - 0.5 0.5 - 0.4 0.4
Disposals (0.2) (0.9) (1.1) (0.9) (0.2) (1.1)
Unrealised
surplus on
revaluation 46.2 4.2 50.4 55.7 0.8 56.5
---------------------- ---------- --------- --------- ---------- --------- -----------
Closing market
value 1,529.9 27.1 1,557.0 1,321.7 20.2 1,341.9
Add finance
lease obligations
recognised
separately 3.0 - 3.0 3.0 - 3.0
---------------------- ---------- --------- --------- ---------- --------- -----------
Closing fair
value of investment
property 1,532.9 27.1 1,560.0 1,324.7 20.2 1,344.9
---------------------- ---------- --------- --------- ---------- --------- -----------
30/09/2017 31/03/2017
GBPm GBPm
------------------------------------------ ---------- ----------
Market value of investment property
as estimated by valuer 1,523.4 1,315.3
Add IPUC 27.1 20.2
Add pharmacy lease premiums 6.5 6.4
Add finance lease obligations recognised
separately 3.0 3.0
------------------------------------------ ---------- ----------
Fair value for financial reporting
purposes 1,560.0 1,344.9
------------------------------------------ ---------- ----------
Assets held for sale 4.8 0.9
------------------------------------------ ---------- ----------
Total property assets 1,564.8 1,345.8
------------------------------------------ ---------- ----------
Six properties and three land sites are held as available for
sale (31 March 2017: two land sites).
10. Deferred revenue
30/09/2017 31/03/2017
GBPm GBPm
----------------------------------------- ---------- ----------
Arising from rental received in advance 17.3 15.7
Arising from pharmacy lease premiums
received in advance 6.5 6.4
----------------------------------------- ---------- ----------
23.8 22.1
----------------------------------------- ---------- ----------
Current 17.9 16.3
Non-current 5.9 5.8
----------------------------------------- ---------- ----------
23.8 22.1
----------------------------------------- ---------- ----------
11. Borrowings
30/09/2017 31/03/2017
GBPm GBPm
---------------------------------- ---------- ----------
At 1 April 520.1 369.2
Amount issued or drawn down in
period/year 70.0 210.0
Amount repaid in period/year (2.1) (59.0)
Loan issue costs (0.4) (2.2)
Amortisation of loan issue costs 0.4 0.7
Write off of loan issue costs - 1.4
---------------------------------- ---------- ----------
At the end of the period/year 588.0 520.1
---------------------------------- ---------- ----------
Due within one year 4.4 4.3
Due after more than one year 583.6 515.8
---------------------------------- ---------- ----------
At the end of the period/year 588.0 520.1
---------------------------------- ---------- ----------
The Group has the following bank facilities:
1. 10-year senior secured bond for GBP110 million at a fixed
interest rate of 4.75% maturing in December 2021. The secured bond
carries a loan to value covenant of 75% (70% at the point of
substitution of an investment property or cash) and an interest
cover requirement of 1.15 times (1.5 times at the point of
substitution). In addition, the bond is subject to a WAULT test of
10 years which, if not met, gives the bondholder the option to
request repayment of GBP5.5 million every six months.
2. Loans from Aviva Commercial Finance with an aggregate balance
of GBP211.7 million at 30 September 2017 (31 March 2017: GBP213.8
million). The Aviva loans are partially amortised by way of
quarterly instalments and partially repaid by way of bullet
repayments falling due between 2024 and 2044 with a weighted
average term of 12.8 years to maturity; GBP4.4 million is due
within a year. These loans are secured by way of charges over
specific medical centre investment properties with
cross-collateralisation between the loans and security. The loans
are subject to fixed all-in interest rates ranging between 4.11%
and 6.66% and have a weighted average of 5.43%. The loans carry a
debt service cover covenant of 1.05 times and an LTV covenant of
70%, calculated across all loans and secured properties.
3. Five-year club revolving credit facility with RBS, HSBC,
Santander and Barclays for GBP250 million on an unsecured basis at
an initial margin of 1.50% above LIBOR, expiring in May 2021. The
margin increases based on the LTV of the subsidiaries to which the
facility relates, up to 2.0% where the LTV is in excess of 50%. The
facility is subject to a historical interest cover requirement of
at least 175%, maximum LTV of 60% and a weighted average lease
length of seven years. As at 30 September 2017, GBP170 million of
this facility was drawn (31 March 2017: GBP100 million). Subsequent
to the period end, the available facility has been increased to
GBP300 million.
4. 10-year notes in the US private placement market for a total
GBP100 million. The notes are unsecured, have a fixed interest rate
of 2.65% and were drawn on 13 October 2016. The facility is subject
to a historical interest cover requirement of at least 175%,
maximum LTV of 60% and a weighted average lease length of seven
years.
The Group has been in compliance with all financial covenants on
all of the above loans as applicable throughout the period.
Subsequent to the period end, the Group has issued GBP150 million
of privately placed notes in two tranches with maturities of eight
and ten years. The weighted average coupon is 3.04%, the notes are
unsecured and covenants match existing unsecured facilities.
12. Share capital
Share Share
Number capital Number capital
of shares 30/09/2017 of shares 31/03/2017
30/09/2017 GBPm 31/03/2017 GBPm
Ordinary Shares of 10
pence each issued and
fully paid
At 1 April 1,655,040,993 165.5 1,637,706,738 163.8
Issued April 2016 - scrip - - 2,291,541 0.2
Issued July 2016 - scrip - - 1,880,037 0.2
Issued August 2016 - - 8,000,000 0.8
Issued October 2016 -
scrip - - 2,130,150 0.2
Issued January 2017 -
scrip - - 3,032,527 0.3
Issued April 2017 - scrip 1,514,247 0.2 - -
Issued June 2017 163,999,820 16.4 - -
Issued July 2017 - scrip 3,861,017 0.4 - -
Issued August 2017 3,226,687 0.3 - -
--------------------------- -------------- ----------- -------------- -----------
Total at 30 September/31
March 1,827,642,764 182.8 1,655,040,993 165.5
Own shares held - - (61,898) -
--------------------------- -------------- ----------- -------------- -----------
Total share capital 1,827,642,764 182.8 1,654,979,095 165.5
--------------------------- -------------- ----------- -------------- -----------
The ordinary shares issued in April 2016, July 2016, October
2016, January 2017, April 2017 and July 2017 were issued to
shareholders who elected to receive Ordinary Shares in lieu of a
cash dividend under the Company scrip dividend alternative.
In June 2017, a total of 163,999,820 new ordinary shares of 10
pence each were placed at a price of 60 pence per share. The
raising resulted in gross proceeds of approximately GBP98.4 million
which has been allocated appropriately between share capital
(GBP16.4 million) and share premium (GBP82.0 million). Issue costs
totalling GBP2.3 million were incurred and have been allocated
against share premium.
In August 2017 and August 2016, 3,226,687 and 8,000,000 Ordinary
Shares were issued following employees exercising nil-cost options
awarded under the VCP.
13. Commitments
At the period end the Group had five forward funding purchases
on site (31 March 2017: seven) with a contracted total expenditure
of GBP34.3 million (31 March 2017: GBP39.7 million) of which
GBP21.7 million (31 March 2017: GBP15.9 million) had been
expended.
14. Dividends paid on Ordinary Shares
Six months Six months
ended ended
Number 30 September 30 September
Pence of Ordinary 2017 2016
Payment date per share Shares GBPm GBPm
--------------- ---------- -------------- ------------- -------------
20 April 2016 0.55 1,637,706,738 - 9.0
27 July 2016 0.55 1,639,998,279 - 9.0
19 April 2017 0.60 1,655,040,993 9.9 -
19 July 2017 0.60 1,656,555,240 10.0 -
--------------- ---------- -------------- ------------- -------------
19.9 18.0
--------------- ---------- -------------- ------------- -------------
A dividend of 0.60 pence per share was paid to shareholders on
18 October 2017.
Directors' responsibilities statement
Principal risks and uncertainties
The factors identified by the Board as having the potential to
affect the Group's operating results, financial control and/or the
trading price of its shares were set out in detail in the Annual
Report for the year ended 31 March 2017.
The Directors have reconsidered the principal risks and
uncertainties facing the Group. Accordingly, the Directors do not
consider that the principal risks and uncertainties have changed
significantly since the publication of the Annual Report for the
year ended 31 March 2017.
Going concern
The Directors continue to adopt the going concern basis of
accounting in preparing the financial statements. The Group's
properties are substantially let with the majority of rent paid or
reimbursed by the NHS and they benefit from a weighted average
lease length on the portfolio of 12.8 years. The Group has
facilities from a variety of lenders with modest annual
amortisation, in addition to the secured bond, and has remained in
compliance with all covenants throughout the period. In making the
assessment, and having considered the continuing economic
uncertainty, the Directors have reviewed the Group's financial
forecasts which cover a period of 18 months beyond the balance
sheet date, showing that borrowing facilities are adequate and the
business can operate within these facilities and meet its
obligations when they fall due for the foreseeable future. There
have been no material changes in assumptions in the forecast from
the basis adopted in making the assessment at the previous year
end.
Directors' responsibilities statement
The Board confirms to the best of their knowledge:
-- that the Interim Condensed Consolidated Accounts for the six
months to 30 September 2017 have been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted by the European
Union; and
-- that the Half Year Management Report comprising the Business
Review and the principal risks and uncertainties includes a fair
review of the information required by sections 4.2.7R and 4.2.8R of
the Disclosure and Transparency Rules.
The above Directors' Responsibilities Statement was approved by
the Board on 15 November 2017.
JONATHAN MURPHY JAYNE COTTAM
CEO CFO
15 November 2017
Independent review report to Assura plc
For the six months ended 30 September 2017
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2017 which comprise the Interim
Condensed Consolidated Income Statement, the Interim Condensed
Consolidated Balance Sheet, the Interim Condensed Consolidated
Statement of Changes in Equity, the Interim Condensed Consolidated
Statement of Cash Flow and the related Notes 1 to 14. We have read
the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
This report is made solely to the Company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. Our work has been undertaken so that we
might state to the Company those matters we are required to state
to it in an independent review 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, for our work, for
this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
As disclosed in Note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2017 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Deloitte LLP - Statutory Auditor
Manchester, UK
15 November 2017
Corporate information
Registered The Brew House
Office: Greenalls Avenue
Warrington
Cheshire
WA4 6HL
---------------- --------------------------------
Company Orla Ball
Secretary:
---------------- --------------------------------
Auditor: Deloitte LLP
2 Hardman Street
Manchester
M3 3HF
---------------- --------------------------------
Legal Advisors: Ernst & Young LLP
2 St Peter's Square
Manchester
M2 3DF
---------------- --------------------------------
Stockbrokers: Stifel Nicolaus Europe Limited
150 Cheapside
London
EC2V 6ET
---------------- --------------------------------
J.P. Morgan Securities plc
25 Bank Street
London
E14 5YP
---------------- --------------------------------
Bankers: Aviva plc
Barclays Bank plc
HSBC Bank plc
Santander UK plc
The Royal Bank of Scotland plc
---------------- --------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BFBFTMBJBMJR
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November 16, 2017 02:01 ET (07:01 GMT)
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