8th Sep 2006 07:01
CareCapital Group plc08 September 2006 For release at 0700h, 8 September 2006 CareCapital Group Plc ("CareCapital" or "the Company") Interim Results for the Six Months to 30 June 2006 Statement by the Chairman, Dr Michael Sinclair I am pleased to present my statement in respect of the Interim Results forCareCapital Group Plc for the six months to 30th June 2006, its first as aquoted company, as the Company's shares were admitted to the AIM on 4th August2006. The reasons for this were twofold; firstly, to enable our private equitybacker, Asgard Sarl (a real estate investment fund managed by AXA REIM) torealise part of its shareholding in the Company and secondly, to provide aplatform for the Company to raise funds in the future for working capital andthe equity requirements of capital projects. Our financial performance for the six months to 30th June 2006 was entirely inline with projections with both rental and facilities management income onbudget. A number of rent reviews have been undertaken over the past few monthswith results ahead of expectations. A valuation of the Company's existing property investment portfolio wasundertaken by Colliers CRE in connection with our admission to AIM. Thisvaluation, dated 31st July 2006, puts a market value on the portfolio of £23,092,000 (gross) and £21,770,000 (net) after taking into account thededuction of notional buyers' costs. Looking forward, I am pleased to report that the Company has a significantpipeline of medical centres and other healthcare related property projects thatare being currently progressed. We anticipate that three of these projects willbegin construction during the fourth quarter of 2006 or first quarter 2007 witha capital value in excess of £10 million. Construction of the shell for a dental centre in Folkestone (as part of theregeneration of the town centre) is on schedule and due for completion, prior tofit-out, in June 2007. This £4.5 million value project, which is due to open inJanuary 2008, will, I believe, be a template for major dental centres across theUK, serving both NHS and private patients. In addition, we are short-listed forfour PFI and similarly procured healthcare projects and have recentlystrengthened our team working on these bids. We have been selected as preferred bidder for a major medical resource centreproject in North Wales. This project will be developed for the Local HealthBoard in partnership with Gaufron Healthcare and has a capital value of £6.5million. Construction is scheduled to commence in March 2007 and to complete inMay 2008. The joint venture with Gaufron Healthcare, enabling better access topotential projects in Wales, is one of the strategic partnerships that we haveto facilitate future healthcare real estate development opportunities. Anotherexample is Bay Area Health Trust (UK) Limited where we participate on an equalbasis with Bay Area Health Trust (part of Hamilton Health Sciences) and Med-Emerg (International) Inc., thereby enabling CareCapital to provide the propertyelement for projects requiring a high level of patient clinical and otherservices. I would like to take this opportunity to thank AXA REIM for its financial andother support over the past two years following the formation of the CareCapitalGroup of companies. I would also like to welcome our new shareholders and tothank them for their support for our AIM flotation and look forward to a goodrelationship with them. I am very pleased that Keith Gibbs is to stay on the Board and that Lord Evansof Watford (David Evans) agreed to join the Board. Last, but not least, achieving a market listing is time consuming and disruptiveand I would like to congratulate Paul Stacey, Steve Wilden and the ManagementTeam on not only achieving this but also continuing the progress of the Companyand its capital projects. 8 September 2006 For further information: Richard Sunderland/Simon HudsonTavistock CommunicationsTel: 020 7920 3150 CareCapital LtdConsolidated Profit and Loss Accountfor the six months ended 30th June 2006 Six months Six months Year ended ended ended 30th June 30th June 31st December 2006 2005 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000Turnover 906 868 1,748Cost of sales 51 39 73 ----------------------------------------------------Gross profit 855 829 1,675Administrative expenses 1,008 592 1,253Exceptional expenses 294 - - ----------------------------------------------------Earnings before interest, taxation,depreciation and amortisation (447) 237 422Depreciation (16) (15) (34)Goodwill amortisation (38) (38) (77) ----------------------------------------------------Operating profit / (loss) (501) 184 311Interest receivable 111 131 245Interest payable and similar charges (588) (566) (1,155) ----------------------------------------------------Loss on ordinary activities (978) (251) (599)Tax on loss on ordinary activities - - - ----------------------------------------------------Loss for the financial period (978) (251) (599) ====================================================Loss per share - basic (0.083p) (0.021p) (0.051p)Loss per share - diluted (0.079p) (0.020p) (0.048p) Consolidated statement of totalrecognised gains and losses Profit/(Loss) for the financial period (978) (251) (599)Property revaluation - - 281 ----------------------------------------------------Total recognised gains and losses (978) (251) (318) ---------------------------------------------------- CareCapital Group PlcConsolidated Balance SheetAs at 30 June 2006 As at As at As at 30 June 30 June 31 December 2006 2005 2005 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Fixed assetsIntangible assets 241 317 279Tangible assets 21,883 20,697 21,539 ---------------------------------------------------- 22,124 21,014 21,818 ---------------------------------------------------- Current assetsStocks 1 1 1Debtors 509 310 379Cash at bank and in hand 5,739 7,365 6,965 ---------------------------------------------------- 6,249 7,676 7,345Creditors: amounts falling due within one year (1,347) (986) (1,043) ----------------------------------------------------Net Current assets 4,902 6,690 6,302 ----------------------------------------------------Total assets less current liabilities 27,026 27,704 28,120 ----------------------------------------------------Creditors: amounts falling due after more than one year (16,724) (16,357) (16,840)Provisions for Liabilities and charges (37) (37) (37) ----------------------------------------------------Net assets 10,265 11,310 11,243 ==================================================== Capital and reservesCalled up share capital 11,745 11,745 11,745Share premium accountProfit and loss account (1,761) (435) (783)Revaluation reserve 281 281 ----------------------------------------------------Shareholders' funds 10,265 11,310 11,243 ---------------------------------------------------- CareCapital LtdConsolidated Cash flow Statementfor the six months ended 30th June2006 Six months Six months Year ended ended ended 30th June 2006 30th June 2005 31st December 2005 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net cash inflow from operating activities (330) 149 321 Returns on investments and servicing of financeInterest received 114 139 244Interest paid (612) (574) (1,118)Interest element of finance lease payments (2) (2) (4) Net cash outflow from returns on ----------------------------------------------------investments and servicing of finance (500) (437) (878) ----------------------------------------------------Taxation 4 4 Capital expenditurePurchase of tangible fixed assets (359) (100) (680) ----------------------------------------------------Net cash outflow from capital expenditure (359) (100) (680) ----------------------------------------------------Net cash outflow before financing (1,189) (384) (1,233) FinancingIncrease/(decrease) of debts due within one year 25 4 (40)New loans in year 435Repayment of secured loans (108) (178) (121)Capital element of finance lease payments (9) (9) (18) ----------------------------------------------------Net cash (outflow)/inflow from financing (92) (183) 256 ----------------------------------------------------(Decrease)/Increase in cash (1,281) (567) (977) ==================================================== Reconciliation of operating profit tonet cash inflow from operating activitiesOperating profit (501) 184 311Depreciation charges 16 15 34Amortisation 38 38 77(Increase)/decrease in stocks(Increase)/decrease in debtors (132) (58) (127)Increase/(decrease) in creditors 249 (30) 26 ----------------------------------------------------Net cash inflow from operating activities (330) 149 321 ==================================================== Reconciliation of net cash flow tomovement in net debt Increase/(decrease) in cash in period (1,281) (567) (977)Cash outflow from decrease in debt and lease financing 92 183 179 ----------------------------------------------------Change in debt resulting from cash flows (1,189) (384) (798)New long term loans (435) ----------------------------------------------------Movement of net debt in the period (1,189) (384) (1,233) ====================================================Net debt at start of period (10,241) (9,008) (9,008)Net debt at end of period (11,430) (9,392) (10,241) ---------------------------------------------------- Notes to the financial informationFor the six months ended 30th June 2006 1. Basis of preparation At 30 June 2006 CareCapital Group Plc had not traded, and the financial information contained within the statement represents the consolidated results of CareCapital Ltd and its subsidiaries, which will be accounted for under the merger accounting rules in accordance with FRS 6. 2. Earnings/(loss) per share CareCapital Ltd The issued share capital of CareCapital Ltd at 30 June 2006 comprised 11,745,162 ordinary £1 shares. Share options granted to senior management at this date comprised 630,000 ordinary £1 shares. The loss per share based on the share capital of CareCapital Ltd at 30 June 2006 was: As at As at As at 30 June 30 June 31 December 2006 2005 2005 Loss per share (Unaudited) (Unaudited) (Audited) Basic - 11,745,162 ordinary £1 shares 0.083 pence 0.021 pence 0.051 pence Diluted - 12,375,162 ordinary £1 shares 0.079 pence 0.020 pence 0.048 pence CareCapital Group Plc Immediately prior to the admission of CareCapital Group Plc to AIM, the issued share capital in CareCapital Ltd was purchased by CareCapital Group Plc for the consideration of 71,754,096 ordinary 0.01p shares. On admission to AIM, CareCapital Group Plc placed 5,000,000 new 0.01 pence ordinary shares. The existing share options were converted into 4,271,436 options for 0.01 pence ordinary shares. The loss per share based on the share capital of CareCapital Group Plc at 4 August 2006 was: As at As at As at 30 June 30 June 31 December 2006 2005 2005 Loss per share (Unaudited) (Unaudited) (Audited) Basic - 76,754,096 ordinary 0.01 shares 0.013 pence 0.003 pence 0.008 pence Diluted - 81,025,532 ordinary 0.01 shares 0.012 pence 0.003 pence 0.007 pence 3. Exceptional item At 30 June 2006, the Company had incurred costs of £294,000 in respect of the AIM listing, which took place on 4 August 2006. This amount represented the costs and commitments at that point. The final costs which will be reflected in the full year accounts were £610,000. 4. Property Portfolio At 30 June 2006, the value of Properties held as investments contained within Fixed assets totalled £21,429,000. These properties were valued at £21,770,000 in an independent valuers report dated 31 July 2006. 5. Status of financial information The interim results of the Group for the six months to 30 June 2006 were approved by the Board on 29 August 2006. The interim financial statements have not been audited and do not constitute statutory accounts as defined under s240 of the Companies Act 1985. The Interim financial statements have been prepared in accordance with applicable accounting standards and are consistent with those adopted in the Consolidated statutory accounts of CareCapital Limited for the year ended 31 December 2005. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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