TIDMAGR
RNS Number : 7554P
Assura PLC
22 November 2016
Assura plc
Continued growth driving income returns
22 November 2016
Assura plc ("Assura"), the leading primary care property
investor and developer, announces its half year results for the six
months ended 30 September 2016:
Continued growth of portfolio, rents and profit
-- 75.2% increase in underlying profit[1] before tax to GBP19.8
million (2015: GBP11.3 million)
-- 10.6% increase in investment property, to GBP1.2 billion (March 2016: GBP1.1 billion)
-- 3.1% growth in diluted EPRA NAV per share to 47.2 pence (March 2016: 45.8 pence)
-- 9.9% increase in rent roll to GBP70.1 million (March 2016: GBP63.8 million)
-- GBP41.7 million profit before tax (2015: GBP35.4 million)
Strong balance sheet and cost of debt reducing
-- GBP200 million new unsecured revolving credit facility signed at initial margin of 150bps
-- Weighted average cost of debt reduced by 56bps to 4.28% (March 2016: 4.84%)
-- Post period end, GBP100 million notes US private placement
agreed at 2.65% fixed for 10 years
Sector leader in a market that is in critical need of
investment
-- Growing consensus that primary care must play a bigger role in health provision
-- Significant historical underinvestment in primary care space,
many GP premises not currently fit for purpose
-- NHS England's "General Practice Forward View", announced in
April 2016, further emphasises need for appropriate primary care
infrastructure and premises
Well positioned to help alleviate the pressures on primary care
infrastructure
-- Strong pipeline with GBP131 million of acquisitions and developments
-- Current LTV of 34% provides GBP235 million of investment
capacity before reaching the mid-point of our LTV range of 40%-50%,
allowing Assura to move quickly as the right investment
opportunities arise
-- Scalable, internally managed operating model, with in-house development capability
-- Group operates in fragmented market: portfolio of 363 medical
centres compares to a total UK market of close to 9,000
buildings
Dividend
-- 9% increase in quarterly dividend from January 2017 to 0.60 pence per share
Jonathan Murphy, Interim CEO, said:
"Assura has grown significantly in the first half of the year,
reflecting the benefit of completed developments and acquisitions.
The Group is well positioned as a sector leader in a market that is
in critical need of investment. There is a growing consensus that
primary care must play a bigger role in health provision and the
Group is ideally placed with the expertise, scale and financial
flexibility to help the NHS develop our nation's primary care
infrastructure."
For further information, please contact:
Assura plc: Tel: 01925
Jonathan Murphy 420660
Orla Ball
Finsbury: Tel: 0207
Gordon Simpson 251 3801
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 22
November 2016 at 11am London time, with a webcast available from
our website or via the following link:
http://webcasting.brrmedia.co.uk/broadcast/57eccfec9b1c50d15e423a37
Interim CEO's statement
This has been a further period of significant growth for Assura.
The value of our investment property is now GBP1.2 billion, after
an increase of GBP118 million since 31 March 2016. In the six
months to 30 September 2016, we completed GBP95 million of property
additions, acquiring and developing assets in line with the plan
outlined at the time of our equity fundraising a year ago.
We have also continued to strengthen our financial position,
reducing our financing costs and improving the financial structure
to make it more appropriate to support our business. In May, we
negotiated a new GBP200 million unsecured revolving credit
facility, with a lower initial margin than that of the facility it
replaced. Since the period end we have issued unsecured ten-year
notes, at a fixed rate of 2.65%, for a total of GBP100 million;
this was our first issue in the US private placement market. The
unsecured funding increases operational flexibility and reduces
transaction costs associated with financing properties.
With gearing still below our medium-term loan-to-value range of
40% to 50%, our strong financial position together with the
longevity and security of our property cash flows underpins our
progressive dividend policy and leaves us well placed to take
advantage of our good pipeline of further investment
opportunities.
Highlights
Net rental income increased 17% to GBP32.9 million in the
period, underlying profits increased 75% to GBP19.8 million and
diluted EPRA net asset value grew 3% to 47.2 pence per share at the
period-end. The growth in underlying profits reflects the benefit
of completed developments and acquisitions, reduced financing costs
and efficiencies from our internally managed model driving down our
EPRA Cost Ratio.
This financial performance has enabled us to announce an
increase of 9% in our dividend from January 2017, to 0.60 pence per
share on a quarterly basis.
Market opportunity
The policy announcement from the NHS in April 2016, entitled
General Practice Forward View, acknowledged that there remains
considerable underinvestment in primary care infrastructure in the
UK. We have also seen a number of area Sustainability and
Transformation Plans ("STPs") published, which are supportive of
the shift in service provision from the acute hospital sector into
the community.
The NHS has announced funds totalling GBP900 million over four
years to support the investment in primary care infrastructure that
this shift in service provision will require, through the Estates
and Technology Transformation Fund ("ETTF"). The first schemes to
be selected for this funding have now been published and we are
working with a large number of the GP practices identified. The
scale of the required investment is significantly more than the
announced funding and so the full implementation of this investment
plan remains subject to uncertainty. We continue to make the case
for further funding being made available to secure the future
savings for the NHS that could be achieved through the greater
provision of services from the more cost effective and convenient
primary care setting.
Our established track record in providing state of the art
primary care premises, adapted to each local community in which
they operate, means we are well placed to serve these changing
needs, subject to the funding and NHS approvals being forthcoming.
In addition to developments, we retain a strategy to target
completed buildings for acquisition. The market remains highly
fragmented and so we continue to see many opportunities available
to us.
Outlook
The recent US private placement has strengthened our financial
position and improved our flexibility through the further use of
unsecured funding. This leaves us well placed to take advantage of
the GBP83 million of targeted acquisition opportunities currently
in solicitors' hands and to secure development opportunities,
beyond the eight schemes in the immediate pipeline, as they become
available. The underlying business continues to provide a very
stable and long-term income return and our confidence in the
business is reflected in the announced 9% increase in the quarterly
dividend from January 2017.
Jonathan Murphy
Interim CEO
21 November 2016
Business review
For the six months ended 30 September 2016
Portfolio as at 30 September 2016 GBP1,207.7 million (31 March
2016: GBP1,088.0 million)
Our business is based on our investment portfolio of 363
properties. This has a passing rent roll of GBP70.1 million (March
2016: GBP63.8 million), 86% of which is underpinned by the NHS. The
WAULT is 13.5 years and 84% of the rent roll will still be
contracted in 2026.
At 30 September 2016 our portfolio of completed investment
properties was valued at a total of GBP1,207.7 million (see Note 9,
March 2016: GBP1,088.0 million), which produced a net initial yield
("NIY") of 5.22% (March 2016: 5.29%). 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 5.42%
(March 2016: 5.52%). Adjusting this Royal Institution of Chartered
Surveyors standard measure to reflect the advanced payment of
rents, the true equivalent yield is 5.61% (March 2016: 5.72%).
Six months Six months
ended ended
30 September 30 September
2016 2015
GBPm GBPm
---------------------- ------------- -------------
Net rental income 32.9 28.1
Valuation movement 23.4 25.7
---------------------- ------------- -------------
Total Property Return 56.3 53.8
---------------------- ------------- -------------
Expressed as a percentage of opening investment property plus
additions, Total Property Return for the six months was 4.7%
compared with 5.4% in 2015.
Our annualised Total Return over the five years to 31 December
2015 as calculated by IPD was 8.8% compared with the IPD All
Healthcare Benchmark of 6.9% over the same period.
The valuation gain in the six months of GBP23.4 million
represents a 2.56% 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 gilt which traded at 1.16% at 30 September 2016.
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
2016
GBPm
------------------------------------------ -------------
Acquisition of completed medical centres 81.2
Developments/forward funding arrangements 11.5
Like-for-like portfolio (improvements) 1.4
------------------------------------------ -------------
Total capital expenditure 94.1
------------------------------------------ -------------
The bulk of the growth in our investment portfolio has come from
the acquisition of 41 properties, seeing us invest GBP81.2 million
during the period.
Despite the continued delay in NHS approval of new developments,
we have completed two developments during the period (both under
forward funding agreements) with a total development cost of
GBP13.8 million. This has added GBP0.7 million to our annual rent
roll and generated a 5.0% yield on cost.
During this period we recorded a revaluation gain of GBP0.4
million in respect of investment property under construction and a
deficit of GBP0.7 million in respect of land held for sale. This
resulted in a net deficit of GBP0.3 million (2015: GBP0.5
million).
As at 30 September 2016, we had one development on site under a
forward funding agreement, with a total committed investment value
of GBP3.5 million, and a further eight which we would hope to be on
site shortly (estimated cost of GBP43.9 million).
Live developments and forward funding arrangements
Estimated
completion Development Costs to
date % NHS costs date Size
----------- ----------- ----- ----------- -------- --------
West Gorton July 2017 74 GBP3.5m GBP0.8m 1,191sqm
----------- ----------- ----- ----------- -------- --------
Portfolio management
We have continued to deliver rental growth and have successfully
concluded on 64 rent reviews during the six months to generate a
weighted average annual rent increase of 1.60% (year to March 2016:
1.20%) on those properties. Our portfolio benefits from a 28%
weighting in fixed, Retail Price Index ("RPI") and other uplifts
which generated an average uplift of 2.48% during the period. The
majority of our portfolio is subject to open market reviews and
these have generated an average uplift of 1.11% during the
period.
We have a dedicated team of asset managers who are in regular
communication with our customers and we monitor progress through
regular customer satisfaction surveys.
During the period we have secured seven new tenancies with an
annual rent roll of GBP0.1 million covering 1,021 square metres.
Our EPRA Vacancy Rate was 2.4% (March 2016: 3.0%).
Administrative expenses
The Group measures its operating efficiency as the proportion of
administrative costs to the average gross investment property
value. This ratio during the period was 0.29% (2015: 0.31%) and
administrative costs stood at GBP3.4 million (2015: GBP3.0
million).
We also analyse cost performance by reference to our EPRA Cost
Ratios (including and excluding direct vacancy costs) which were
13.5% and 12.3% respectively (2015: 19.2% and 18.2%).
Financing
In May 2016, we replaced our existing GBP120 million revolving
credit facility with a new five-year GBP200 million facility on an
unsecured basis. The initial interest rate is 150 basis points
above LIBOR, subject to leverage.
On 3 October 2016, we announced that the Group had signed
agreements in the US private placement market for new unsecured,
ten-year notes totalling GBP100 million. These have a fixed
interest rate of 2.65% and were drawn in full on 13 October
2016.
At 30 September 2016, we had undrawn facilities and cash of
GBP102.7 million, before taking into account the new GBP100 million
notes.
Financing statistics 30/09/2016 31/03/2016
-------------------------------- ---------- ----------
Net debt GBP422.4m GBP327.9m
Weighted average debt maturity 8.7 years 10.2 years
Weighted average interest rate 4.28% 4.84%
% of debt at fixed/capped rates 72% 88%
Interest cover(2) 304% 218%
Loan to value 34% 30%
-------------------------------- ---------- ----------
(2) Interest cover is the number of times net interest payable
is covered by underlying profit before net interest.
Our loan to value ("LTV") ratio currently stands at 34%, which
is lower than our target range of 40%-50% and will increase as we
invest in our pipeline in the short term. 72% of the debt
facilities are fixed with a weighted average debt maturity of 8.7
years compared with a WAULT of 13.5 years, which highlights the
security of the cash flows of the business. Upon drawing the new
GBP100 million notes on 13 October 2016, the weighted average debt
maturity increased to 10.1 years.
Details of the facilities and their covenants are set out in
Note 11 to the accounts.
Net finance costs presented through underlying profit in the
six-month period amounted to GBP9.7 million (2015: GBP13.8
million). In addition, GBP1.5 million of loan issue costs were
written off following the change in revolving credit facility.
Underlying profit
Six months Six months
ended ended
30 September 30 September
2016 2015
GBPm GBPm
------------------------ ------------- -------------
Net rental income 32.9 28.1
Administrative expenses (3.4) (3.0)
Net finance costs (9.7) (13.8)
------------------------ ------------- -------------
Underlying profit 19.8 11.3
------------------------ ------------- -------------
The movement in underlying profit can be summarised as
follows:
GBPm
----------------------------------- -----
Six months ended 30 September 2015 11.3
Net rental income 4.8
Administrative expenses (0.4)
Net finance costs 4.1
----------------------------------- -----
Six months ended 30 September 2016 19.8
----------------------------------- -----
Underlying profit has grown 75.2% to GBP19.8 million in the six
months to 30 September 2016 reflecting the property acquisitions
completed and the reduced finance costs from reducing our LTV.
Earnings per share
The basic earnings per share ("EPS") on profit for the period
was 2.5 pence (2015: 3.5 pence).
EPRA EPS, which excludes the net impact of valuation movements
and gains on disposal, was 1.2 pence (2015: 0.9 pence).
Underlying profit per share omits accounting adjustments and
certain exceptional items as referenced earlier and has increased
to 1.2 pence (2015: 1.1 pence).
Based on calculations completed in accordance with IAS 33,
share-based payment schemes are currently expected to be dilutive
to EPS, with 3.3 million new shares expected to be issued. The
dilution is not material as illustrated by the table below:
EPS measure Basic Diluted
---------------------- ----- -------
Profit for six months 2.5p 2.5p
EPRA 1.2p 1.2p
Underlying 1.2p 1.2p
---------------------- ----- -------
Dividends
Total dividends paid in the six months to 30 September 2016 were
GBP18.0 million or 1.1 pence per share (2015: 1.0 pence per share).
GBP2.2 million of this was satisfied through the issuance of shares
via scrip.
As a result of brought forward tax losses all dividends paid
during the year were normal dividends (non-PID) with an associated
tax credit.
The table below illustrates our cash flows over the period:
Six months Six months
ended ended
30 September 30 September
2016 2015
GBPm GBPm
------------------------------ ------------- -------------
Opening cash 44.3 66.5
Net cash flow from operations 15.6 9.5
Dividends paid (15.8) (10.0)
Investment:
Property acquisitions (82.7) (63.1)
Development expenditure (10.5) (7.5)
Sale of properties 1.1 0.6
Other (0.4) -
Financing:
Net borrowings movement 76.1 29.7
------------------------------ ------------- -------------
Closing cash 27.7 25.7
------------------------------ ------------- -------------
Net cash flow from operations differs from underlying profit due
to movements in working capital balances.
Net assets
EPRA NAV movement
Pence per
GBPm share
---------------------------------- ------ ---------
EPRA NAV at 31 March 2016 754.5 46.1
Underlying profit 19.8 1.2
Capital (revaluations and capital
gains) 23.4 1.4
Dividends (18.0) (1.1)
Shares issued 3.0 (0.1)
Other (2.6) (0.2)
---------------------------------- ------ ---------
EPRA NAV at 30 September 2016 780.1 47.3
---------------------------------- ------ ---------
Our Total Accounting Return per share for the six months ended
30 September 2016 is 5.0% of which 1.1 pence per share (2.4%) has
been distributed to shareholders and 1.2 pence per share (2.6%) is
the movement on EPRA NAV.
Portfolio analysis by capital value
Number of Total value Total value
properties GBPm %
--------- ----------- ----------- -----------
>GBP10m 18 269.6 22
GBP5-10m 49 336.6 28
GBP1-5m 220 553.6 46
<GBP1m 76 47.9 4
--------- ----------- ----------- -----------
363 1,207.7 100
--------- ----------- ----------- -----------
Portfolio analysis by region
Number of Total value Total value
properties GBPm %
--------- ----------- ----------- -----------
North 132 495.5 41
South 114 350.0 29
Midlands 73 259.8 22
Scotland 20 42.6 3
Wales 24 59.8 5
--------- ----------- ----------- -----------
363 1,207.7 100
--------- ----------- ----------- -----------
Portfolio analysis by tenant covenant
Total rent Total rent
roll roll
GBPm %
--------- ---------- ----------
GPs 47.2 67
NHS body 13.0 19
Pharmacy 5.2 7
Other 4.7 7
--------- ---------- ----------
70.1 100
--------- ---------- ----------
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
2016 2015
---------------------------------- ------------- -------------
EPRA EPS (p) 1.2 0.9
EPRA Cost Ratio (including direct
vacancy costs) (%) 13.5 19.2
EPRA Cost Ratio (excluding direct
vacancy costs) (%) 12.3 18.2
---------------------------------- ------------- -------------
30/09/2016 31/03/2016
------------------------- ---------- ----------
EPRA NAV (p) 47.3 46.1
EPRA NNNAV (p) 41.6 42.4
EPRA NIY (%) 5.18 5.23
EPRA "topped-up" NIY (%) 5.18 5.23
EPRA Vacancy Rate (%) 2.4 3.0
------------------------- ---------- ----------
EPRA EPS
Six months Six months
ended ended
30 September 30 September
2016 2015
--------------------- ------------- -------------
EPRA EPS (p) 1.2 0.9
Diluted EPRA EPS (p) 1.2 0.9
--------------------- ------------- -------------
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
30/09/2016 31/03/2016
------------- ---------- ----------
EPRA NAV (p) 47.3 46.1
------------- ---------- ----------
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.
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
30/09/2016 31/03/2016
--------------- ---------- ----------
EPRA NNNAV (p) 41.6 42.4
--------------- ---------- ----------
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 and EPRA "topped-up" NIY
30/09/2016 31/03/2016
------------------------- ---------- ----------
EPRA NIY (%) 5.18 5.23
EPRA "topped-up" NIY (%) 5.18 5.23
------------------------- ---------- ----------
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.
30/09/2016 31/03/2016
GBPm GBPm
--------------------------------------- ---------- ----------
Investment property 1,226.8 1,109.4
Less developments (9.5) (11.5)
Completed investment property
portfolio 1,217.3 1,097.9
Allowance for estimated purchasers'
costs 78.4 71.7
--------------------------------------- ---------- ----------
Gross up completed investment
property - B 1,295.7 1,169.6
--------------------------------------- ---------- ----------
Annualised cash passing rental
income 70.1 63.8
Property outgoings (3.0) (2.6)
--------------------------------------- ---------- ----------
Annualised net rents - A 67.1 61.2
--------------------------------------- ---------- ----------
Notional rent expiration of
rent-free periods or other incentives - -
--------------------------------------- ---------- ----------
Topped-up annualised rent -
C 67.1 61.2
--------------------------------------- ---------- ----------
EPRA NIY - A/B (%) 5.18 5.23
EPRA "topped-up" NIY - C/B (%) 5.18 5.23
--------------------------------------- ---------- ----------
EPRA Vacancy Rate
30/09/2016 31/03/2016
---------------------- ---------- ----------
EPRA Vacancy Rate (%) 2.4 3.0
---------------------- ---------- ----------
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.
30/09/2016 31/03/2016
------------------------------------ ---------- ----------
ERV of vacant space (GBPm) 1.7 2.0
ERV of completed property portfolio
(GBPm) 72.2 66.5
EPRA Vacancy Rate (%) 2.4 3.0
------------------------------------ ---------- ----------
EPRA Cost Ratios
Six months Six months
ended ended
30 September 30 September
2016 2015
----------------------------- ------------- -------------
EPRA Costs (including direct
vacancy costs) (%) 13.5 19.2
EPRA Costs (excluding direct
vacancy costs) (%) 12.3 18.2
----------------------------- ------------- -------------
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 ended
30 September 30 September
2016 2015
GBPm GBPm
---------------------------------- ------------- -------------
Direct property costs 1.5 1.3
Administrative expenses 3.4 3.0
Share-based payment costs - 1.6
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 5.6
Direct vacancy costs (0.4) (0.3)
---------------------------------- ------------- -------------
EPRA Costs (excluding direct
vacancy costs) - B 4.2 5.3
---------------------------------- ------------- -------------
Gross rental income less ground
rent costs (per IFRS) 34.2 29.2
---------------------------------- ------------- -------------
Gross rental income - C 34.2 29.2
---------------------------------- ------------- -------------
EPRA Cost Ratio (including direct
vacancy costs) - A/C 13.5 19.2
EPRA Cost Ratio (excluding direct
vacancy costs) - B/C 12.3 18.2
---------------------------------- ------------- -------------
Interim condensed consolidated income statement
For the six months ended 30 September 2016
Six months ended Six months ended
30 September 30 September
2016 2015
Unaudited Unaudited
---------------------------------------------------------------- ---- --------------------------- ---------------------------
Capital Capital
and and
Underlying other Total Underlying other Total
Note GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
Gross rental and
related income 34.4 - 34.4 29.4 - 29.4
Property operating
expenses (1.5) - (1.5) (1.3) - (1.3)
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
Net rental income 32.9 - 32.9 28.1 - 28.1
Administrative
expenses (3.4) - (3.4) (3.0) - (3.0)
Revaluation gains 9 - 23.4 23.4 - 25.7 25.7
Share-based payment
charge - - - - (1.6) (1.6)
Finance revenue 0.1 - 0.1 0.1 - 0.1
Finance costs 5 (9.8) (1.5) (11.3) (13.9) - (13.9)
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
Profit before taxation 19.8 21.9 41.7 11.3 24.1 35.4
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
Taxation 6 - (0.2)
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
Profit for the
period attributable
to equity holders
of the parent 41.7 35.2
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
Earnings per share
from underlying
profit - basic 7 1.2p 1.1p
on profit for year
- basic 7 2.5p 3.5p
-
diluted 7 2.5p 3.4p
---------------------------------------------------------------- ---- ---------- ------- ------ ---------- ------- ------
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 2016
30 31
September March
2016 2016
Unaudited Audited
Note GBPm GBPm
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Non-current assets
Investment property 9 1,226.8 1,109.4
Investments 0.4 0.4
Property, plant and equipment 0.5 0.2
Deferred tax asset 0.4 0.4
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
1,228.1 1,110.4
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Current assets
Cash, cash equivalents and restricted
cash 27.7 44.3
Trade and other receivables 8.7 7.5
Property assets held for sale 9 0.9 1.7
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
37.3 53.5
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Total assets 1,265.4 1,163.9
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Current liabilities
Trade and other payables 13.0 16.5
Borrowings 11 4.1 4.0
Deferred revenue 10 15.4 14.2
Provisions 0.2 0.3
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
32.7 35.0
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Non-current liabilities
Borrowings 11 443.0 365.2
Obligations due under finance leases 3.0 3.0
Deferred revenue 10 6.2 6.4
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
452.2 374.6
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Total liabilities 484.9 409.6
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Net assets 780.5 754.3
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Capital and reserves
Share capital 12 165.0 163.8
Own shares held - (0.6)
Share premium 243.7 241.9
Merger reserve 231.2 231.2
Reserves 140.6 118.0
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Total equity 780.5 754.3
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
Net asset value per Ordinary Share
- basic 8 47.3p 46.1p
-
diluted 8 47.2p 45.7p
Adjusted (EPRA) net asset value
per Ordinary Share - basic 8 47.3p 46.1p
-
diluted 8 47.2p 45.8p
------------------------------------------------------------------------------------------------------------------------------------------------------------- ---- --------- -------
The interim condensed consolidated financial statements were
approved at a meeting of the Board of Directors held on 21 November
2016 and signed on its behalf by:
SIMON LAFFIN JONATHAN MURPHY
NON-EXECUTIVE CHAIRMAN INTERIM CEO
Interim condensed consolidated statement of changes in
equity
For the six months ended 30 September 2016
Own
Share shares Share Merger Total
capital held premium reserve Reserves equity
Note GBPm GBPm GBPm GBPm GBPm GBPm
--------------------- ---- -------- ------- -------- -------- -------- -------
1 April 2015 100.7 (1.8) - 231.2 121.8 451.9
-------- ------- -------- -------- -------- -------
Profit attributable
to equity holders - - - - 35.2 35.2
-------- ------- -------- -------- -------- -------
Total comprehensive
income - - - - 35.2 35.2
Dividend 14 - - - - (10.0) (10.0)
Issue of Ordinary
Shares 12 0.4 - 2.1 - - 2.5
Employee share-based
incentives 0.4 1.4 - - (4.7) (2.9)
--------------------- ---- -------- ------- -------- -------- -------- -------
30 September
2015 (Unaudited) 101.5 (0.4) 2.1 231.2 142.5 476.7
--------------------- ---- -------- ------- -------- -------- -------- -------
Loss attributable
to equity holders - - - - (7.3) (7.3)
-------- ------- -------- -------- -------- -------
Total comprehensive
loss - - - - (7.3) (7.3)
Dividend 14 0.2 - 0.7 - (17.2) (16.3)
Issue of Ordinary
Shares 12 62.1 (0.3) 248.6 - - 310.4
Issue costs - - (9.5) - - (9.5)
Employee share-based
incentives - 0.1 - - 0.2 0.3
--------------------- ---- -------- ------- -------- -------- -------- -------
31 March 2016
(Audited) 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 (Unaudited) 165.0 - 243.7 231.2 140.6 780.5
--------------------- ---- -------- ------- -------- -------- -------- -------
Interim condensed consolidated statement of cash flow
For the six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
2016 2015
Unaudited Unaudited
GBPm GBPm
-------------------------------------------- ------------- -------------
Operating activities
Rent received 33.2 30.5
Interest paid and similar charges (9.6) (13.8)
Fees received 0.4 0.4
Interest received 0.1 0.1
Cash paid to suppliers and employees (8.5) (7.7)
-------------------------------------------- ------------- -------------
Net cash inflow from operating activities 15.6 9.5
-------------------------------------------- ------------- -------------
Investing activities
Purchase of investment property (82.7) (63.1)
Development spend (10.5) (7.5)
Investment in property, plant and equipment (0.4) -
Proceeds from sale of property 1.1 0.6
-------------------------------------------- ------------- -------------
Net cash outflow from investing activities (92.5) (70.0)
-------------------------------------------- ------------- -------------
Financing activities
Dividends paid (15.8) (10.0)
Repayment of loan (57.0) (3.9)
Long-term loans drawn down 135.0 35.0
Loan issue costs (1.9) (1.4)
-------------------------------------------- ------------- -------------
Net cash inflow from financing activities 60.3 19.7
-------------------------------------------- ------------- -------------
Decrease in cash and cash equivalents (16.6) (40.8)
-------------------------------------------- ------------- -------------
Opening cash and cash equivalents 44.3 66.5
-------------------------------------------- ------------- -------------
Closing cash and cash equivalents 27.7 25.7
-------------------------------------------- ------------- -------------
Notes to the interim condensed consolidated accounts
For the six months ended 30 September 2016
1. Corporate information
The Interim Condensed Consolidated Accounts of the Group for the
six months ended 30 September 2016 were authorised for issue in
accordance with a resolution of the Directors on 21 November
2016.
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 2016 have been prepared in accordance with IAS
34 Interim Financial Reporting. These accounts cover the six-month
accounting period from 1 April 2016 to 30 September 2016 with
comparatives for the six-month accounting period from 1 April 2015
to 30 September 2015, or 31 March 2016 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 2016 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 2016 and to 30
September 2015 are unaudited. The interim accounts do not
constitute statutory accounts. The balance sheet as at 31 March
2016 has been extracted from the Group's 2016 Annual Report, on
which the auditor has reported and the report was unqualified.
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 2016, except for the adoption of new standards
and interpretations as of 1 April 2016, noted below, none of which
have a material impact on the financial position or performance of
the Group:
- Annual Improvements 2012-2014 Cycle
- Disclosure Initiative (Amendments to IAS 1)
5. Finance costs
Six months Six months
ended ended
30 September 30 September
2016 2015
GBPm GBPm
------------------------------------------- ------------- -------------
Interest payable 9.7 13.8
Interest capitalised on developments (0.2) (0.2)
Amortisation of loan issue costs 0.3 0.3
------------------------------------------- ------------- -------------
Finance costs presented through underlying
profit 9.8 13.9
Write off of loan issue costs 1.5 -
------------------------------------------- ------------- -------------
Total finance costs 11.3 13.9
------------------------------------------- ------------- -------------
Loan issue costs associated with the previous revolving credit
facility have been written off in the period. These have been
excluded from underlying profit as it is a non-recurring, non-cash
adjustment that is not reflective of the underlying business.
6. Taxation on profit on ordinary activities
Six months Six months
ended ended
30 September 30 September
2016 2015
GBPm GBPm
-------------------------------------- ------------- -------------
Tax charged in the income statement
Deferred tax:
Origination and reversal of temporary
differences - 0.2
-------------------------------------- ------------- -------------
Total tax charge - 0.2
-------------------------------------- ------------- -------------
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 20%.
Group tax charges relate to its non-property income. As the
Group has sufficient brought forward losses no tax is due and so
the charge represents the movement in deferred tax, being
utilisation of the brought forward losses.
As a REIT, the Group is required to pay Property Income
Distributions ("PIDs") equal to at least 90% of the Group's
exempted net income. 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
Adjusted Adjusted
(EPRA) (EPRA)
Earnings earnings Earnings earnings
2016 2016 2015 2015
GBPm GBPm GBPm GBPm
------------------------------ ------------- ------------- ------------- -------------
Profit for the year from
continuing operations 41.7 41.7 35.2 35.2
------------------------------ ------------- ------------- ------------- -------------
Revaluation gains (23.4) (25.7)
Write off of loan issue
costs 1.5 -
------------------------------ ------------- ------------- ------------- -------------
Adjusted (EPRA) earnings 19.8 9.5
------------------------------ ------------- ------------- ------------- -------------
Weighted average number
of shares in issue - basic 1,641,793,597 1,641,793,597 1,008,829,551 1,008,829,551
Potential dilutive impact
of VCP 3,243,291 3,243,291 11,709,952 11,709,952
------------------------------ ------------- ------------- ------------- -------------
Weighted average number
of shares in issue - diluted 1,645,036,888 1,645,036,888 1,020,539,503 1,020,539,503
------------------------------ ------------- ------------- ------------- -------------
Earnings per Ordinary Share
- basic 2.5p 1.2p 3.5p 0.9p
------------------------------ ------------- ------------- ------------- -------------
Earnings per Ordinary Share
- diluted 2.5p 1.2p 3.4p 0.9p
------------------------------ ------------- ------------- ------------- -------------
Underlying profit per share of 1.2 pence (2015: 1.1 pence) has
been calculated as underlying profit for the year as presented on
the income statement of GBP19.8 million (2015: GBP11.3 million)
divided by the weighted average number of shares in issue of
1,640,438,406 (2015: 1,008,829,551). Based on the diluted weighted
average shares, underlying profit per share is 1.2 pence (2015: 1.1
pence).
The current estimated number of shares over which nil-cost
options may be issued to participants is 3.3 million. After
allowing for shares held by the Employee Benefit Trust, this would
amount to a potential issuance of a further 3.2 million shares at
the third measurement date in 2017.
8. Net asset value per Ordinary Share
Adjusted Adjusted
(EPRA) (EPRA)
Net asset net asset Net asset net asset
value value value value
30/09/2016 30/09/2016 31/03/2016 31/03/2016
GBPm GBPm GBPm GBPm
-------------------------- ------------- ------------- ------------- -------------
Net assets 780.5 780.5 754.3 754.3
-------------------------- ------------- ------------- ------------- -------------
Own shares held - 0.6
Deferred tax (0.4) (0.4)
-------------------------- ------------- ------------- ------------- -------------
NAV in accordance with
EPRA 780.1 754.5
-------------------------- ------------- ------------- ------------- -------------
Number of shares in issue 1,649,878,316 1,649,878,316 1,637,706,738 1,637,706,738
Potential dilutive impact
of VCP (Note 7) 3,243,291 3,243,291 11,243,261 11,243,261
-------------------------- ------------- ------------- ------------- -------------
Diluted number of shares
in issue 1,653,121,607 1,653,121,607 1,648,949,999 1,648,949,999
-------------------------- ------------- ------------- ------------- -------------
NAV per Ordinary Share
- basic 47.3p 47.3p 46.1p 46.1p
-------------------------- ------------- ------------- ------------- -------------
NAV per Ordinary Share
- diluted 47.2p 47.2p 45.7p 45.8p
-------------------------- ------------- ------------- ------------- -------------
Adjusted Adjusted
net asset net asset
value value
30/09/2016 31/03/2016
GBPm GBPm
------------------------------ ----------- -----------
EPRA NAV 780.0 754.5
Mark to market of fixed rate
debt (94.2) (60.2)
------------------------------ ----------- -----------
EPRA NNNAV 685.8 694.3
------------------------------ ----------- -----------
EPRA NNNAV per Ordinary Share 41.6p 42.4p
------------------------------ ----------- -----------
The EPRA measures set out above are in accordance with the Best
Practices Recommendations of the European Property Real Estate
Association dated December 2014.
Mark to market adjustments have been provided by third party
valuers or the counterparty as appropriate.
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 2016. The properties have been valued
individually and on the basis of open market value in accordance
with RICS valuation - Professional Standards 2014 ("the Red
Book").
Initial yields mainly range from 4.5% to 5.0% (March 2016: 4.65%
to 5.25%) for prime units, increasing up to 5.75% (March 2016:
6.15%) for older units with shorter unexpired lease terms. For
properties with weaker tenants and poorer units, the yields range
from 5.75% to over 8.0% (March 2016: 6.15% to over 8.0%) and higher
for those very close to lease expiry or those approaching
obsolescence.
Investment IPUC Total Investment IPUC Total
30/09/16 30/09/16 30/09/16 31/03/2016 31/03/2016 31/03/2016
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------- ---------- --------- --------- ----------- ----------- -----------
Opening fair value 1,094.9 11.5 1,106.4 915.6 6.7 922.3
Additions:
---------- --------- --------- ----------- ----------- -----------
- acquisitions 81.2 - 81.2 124.5 - 124.5
- improvements 1.4 - 1.4 2.7 - 2.7
---------- --------- --------- ----------- ----------- -----------
82.6 - 82.6 127.2 - 127.2
Development costs - 11.5 11.5 - 17.7 17.7
Transfers 14.0 (14.0) - 16.4 (16.4) -
Transfer from assets
held for sale - 0.8 0.8 0.6 3.1 3.7
Capitalised interest - 0.2 0.2 - 0.5 0.5
Disposals (0.9) (0.2) (1.1) (0.6) (0.8) (1.4)
Unrealised surplus/(deficit)
on revaluation 23.7 (0.3) 23.4 35.7 0.7 36.4
----------------------------- ---------- --------- --------- ----------- ----------- -----------
Closing market
value 1,214.3 9.5 1,223.8 1,094.9 11.5 1,106.4
Add finance lease
obligations recognised
separately 3.0 - 3.0 3.0 - 3.0
----------------------------- ---------- --------- --------- ----------- ----------- -----------
Closing fair value
of investment property 1,217.3 9.5 1,226.8 1,097.9 11.5 1,109.4
----------------------------- ---------- --------- --------- ----------- ----------- -----------
30/09/2016 31/03/16
GBPm GBPm
-------------------------------------------- ---------- --------
Market value of investment property as
estimated by valuer 1,207.7 1,088.0
Add IPUC 9.5 11.5
Add pharmacy lease premiums 6.6 6.9
Add finance lease obligations recognised
separately 3.0 3.0
-------------------------------------------- ---------- --------
Fair value for financial reporting purposes 1,226.8 1,109.4
-------------------------------------------- ---------- --------
Land held for sale 0.9 1.7
-------------------------------------------- ---------- --------
Total property assets 1,227.7 1,111.1
-------------------------------------------- ---------- --------
Two land sites are held as available for sale (31 March 2016:
three land sites).
10. Deferred revenue
30/09/2016 31/03/2016
GBPm GBPm
---------------------------------------- ---------- ----------
Arising from rental received in advance 15.0 13.7
Arising from pharmacy lease premiums
received in advance 6.6 6.9
---------------------------------------- ---------- ----------
21.6 20.6
---------------------------------------- ---------- ----------
Current 15.4 14.2
Non-current 6.2 6.4
---------------------------------------- ---------- ----------
21.6 20.6
---------------------------------------- ---------- ----------
11. Borrowings
30/09/2016 31/03/2016
GBPm GBPm
------------------------------------------- ---------- ----------
At 1 April 369.2 513.5
Amount issued or drawn down in period/year 80.0 45.0
Amount repaid in period/year (2.0) (188.5)
Loan issue costs (1.9) (1.4)
Amortisation of loan issue costs 0.3 0.6
Write off of loan issue costs 1.5 -
------------------------------------------- ---------- ----------
At the end of the period/year 447.1 369.2
------------------------------------------- ---------- ----------
Due within one year 4.1 4.0
Due after more than one year 443.0 365.2
------------------------------------------- ---------- ----------
At the end of the period/year 447.1 369.2
------------------------------------------- ---------- ----------
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).
2. Loans from Aviva Commercial Finance with an aggregate balance
of GBP215.8 million at 30 September 2016 (31 March 2016: GBP217.8
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 13.5 years to maturity; GBP4.1 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 a loan to value
covenant of 70%, calculated across all loans and secured
properties.
3. Five-year club revolving credit facility with RBS, HSBC,
Santander and Barclays for GBP200 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 2016, GBP125 million of
this facility was drawn. This facility replaced the previous GBP120
million secured revolving credit facility.
On 3 October 2016, the Group announced it had agreed new
ten-year notes in the US private placement market for a total of
GBP100 million. The notes are unsecured, have a fixed interest rate
of 2.65% and were drawn on 13 October 2016.
The Group has been in compliance with all financial covenants on
all of the above loans as applicable throughout the period.
12. Share capital
Share Share
Number capital Number capital
of shares 30/09/2016 of shares 31/03/2016
30/09/2016 GBPm 31/03/2016 GBPm
---------------------------- ------------- ----------- ------------- -----------
Ordinary Shares of 10 pence
each issued and fully paid
At 1 April 1,637,706,738 163.8 1,006,900,141 100.7
Issued 20 July 2015 - - 4,545,455 0.4
Issued 25 September 2015 - - 3,543,975 0.4
Issued 14 October 2015 - - 618,000,000 61.8
Issued 4 November 2015 - - 2,229,072 0.2
Issued 20 January 2016 - - 1,611,873 0.2
Issued 27 January 2016 - - 876,222 0.1
Issued 18 April 2016 2,291,541 0.2 - -
Issued 25 July 2016 1,880,037 0.2 - -
Issued 26 August 2016 8,000,000 0.8 - -
---------------------------- ------------- ----------- ------------- -----------
Total at 30 September/31
March 1,649,878,316 165.0 1,637,706,738 163.8
Own shares held (61,898) - (1,256,714) (0.6)
---------------------------- ------------- ----------- ------------- -----------
Total share capital 1,649,816,418 165.0 1,636,450,024 163.2
---------------------------- ------------- ----------- ------------- -----------
The Ordinary Shares issued on 18 April 2016 and 25 July 2016
represent those issued to shareholders who elected to receive
Ordinary Shares in lieu of a cash dividend under the Company scrip
dividend alternative. On 26 August 2016, 8,000,000 Ordinary Shares
were issued to the Employee Benefit Trust to satisfy amounts owed
to participants of the Value Creation Plan ("VCP") following the
completion of the second measurement period. In addition, 1,194,816
Ordinary Shares were transferred from the Employee Benefit Trust to
participants. The VCP has one remaining measurement period in
2017.
13. Commitments
At the period end the Group had one forward funding purchase on
site (31 March 2016: two developments) with a contracted total
expenditure of GBP3.8 million (31 March 2016: GBP13.5 million) of
which GBP0.8 million (31 March 2016: GBP8.5 million) had been
expended.
14. Dividends paid on Ordinary Shares
Six months Six months
ended ended
Number 30 September 30 September
Pence of Ordinary 2016 2015
Payment date per share Shares GBPm GBPm
-------------- ---------- ------------- ------------- -------------
30 April 2015 0.5 1,006,900,141 - 5.0
22 July 2015 0.5 1,006,900,141 - 5.0
20 April 2016 0.55 1,637,706,738 9.0 -
27 July 2016 0.55 1,639,998,279 9.0 -
-------------- ---------- ------------- ------------- -------------
18.0 10.0
-------------- ---------- ------------- ------------- -------------
A dividend of 0.55 pence per share was paid to shareholders on
19 October 2016.
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 2016.
An update on certain key risks as they relate to the second half
of the year is set out below:
External risk - government policy: there remains a lack of
clarity on the future approval mechanism for new developments. This
risk is mitigated by the fact that recent policy announcements in
the NHS England Five Year Forward View are very supportive of
further investment in the greater provision of healthcare in a
primary care setting. We continue to monitor this closely and are
actively engaged with both the commissioning bodies and the policy
influencers in the NHS to try to minimise any risks from any
potential future changes.
External risk - Brexit: as a wholly UK focused business, the
Board does not expect any negative impact following the June
referendum. However, the Board will continue to monitor
macro-economic factors for evidence of potential negative
consequences.
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 13.5 years. The Group has
facilities from two 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 2016 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 21 November 2016.
SIMON LAFFIN JONATHAN MURPHY
non-EXECUTIVE CHAIRMAN interim ceo
21 November 2016
Independent review report to Assura plc
For the six months ended 30 September 2016
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 2016 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 2016 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 - Chartered Accountants and Statutory Auditor
Manchester, UK
21 November 2016
Corporate information
Registered Office: The Brew House
Greenalls Avenue
Warrington
Cheshire
WA4 6HL
Company Secretary: Orla Ball
Auditor: Deloitte LLP
2 Hardman Street
Manchester
M60 2AT
Legal Advisors: Addleshaw Goddard LLP
100 Barbirolli Square
Manchester
M2 3AB
Stockbrokers: Stifel Nicolaus Europe Limited
150 Cheapside
London
EC2V 6ET
Liberum Capital Limited
Ropemaker Place, Level 12
25 Ropemaker Street
London
EC2Y 9LY
Bankers: Aviva plc
Barclays Bank plc
HSBC Bank plc
Santander UK plc
The Royal Bank of Scotland
plc
[1] Stated before revaluation gains, share-based payments and
other non-recurring items
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BBBRTMBTTBAF
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