28th Nov 2007 07:01
Assura Group Limited28 November 2007 Assura Group Limited Highlights Unaudited interim report for the nine months ended 30 September 2007 Wednesday 28 November 2007: Assura Group works in partnership with GPs andHealth Professionals to deliver property, pharmacy and medical services inprimary care. These unaudited second interim results are in respect of the nine month periodto 30 September 2007. Assura Group is changing its year end to 31 March and thisyear will adopt a 15 month period to 31 March 2008. Financial Highlights • Group operating profit £16.1m (2006: £7.6m) • Second interim dividend of 1.75p1 in addition to the interim dividend paid of 2.33p (2006: 2.00p) • Net assets up 5.4% to £281.9m equivalent to 121.0p per Share compared to 114.3p at 31 December 2006 • Basic Earnings per Share rise to 11.79p (2006: 6.04p) Operating Highlights • Nine joint ventures with GPs formed to provide out-patient and diagnostic procedures to a population of over 1m patients2 • 19 pharmacies open2 • Invested or committed £527m across 144 sites of which 23 are currently in solicitors' hands2 • On track to have joint ventures providing services to 1.5m patients, at least 25 pharmacies open and investments or commitments of close to £600m by 31 March 2008 Commenting on today's announcement, Richard Burrell, CEO of Assura said: "We areencouraged by the multitude of opportunities for locally procured private sectorprovision in the NHS and the emphasis on patients' rights to have personalisedcare closer to home. We believe that our integrated business model will ensurethat we become one of the UK's leading health care provider organisations givingpatients a clinically-led and locally-driven service for outpatient, diagnosticand day case procedures." Enquiries: Assura Group Limited 020 7017 3800Richard Burrell, CEOLouise Bathersby, Marketing & Investor Relations Director FD 020 7831 3113David YatesBen AtwellSanjeev Pandya 1 Ex-dividend date 5 December 2007, record date 7 December 2007, payment date 9 January 2008. 2 As at 26 November 2007. Assura Group Limited Chief Executive's Statement Unaudited interim report for the nine months ended 30 September 2007 This unaudited Second Interim Report is published in respect of the nine monthsto 30 September 2007. Results I am pleased to report good progress since our last set of interim results werepublished in September in all three of our divisions - Property, Pharmacy andMedical. During the period, total revenue amounted to £22.5m (2006: £10.5m) producing aGroup operating profit of £16.1m (2006: £7.6m). Included in the Group operatingprofit is an unrealised surplus on revaluation of investment property of £11.2m(2006: £7.6m). The Pharmacy Division which is expected to be EBITDA positive next year, earneda gross profit of £2.5m on sales of £9.1m and the Medical Division, which isexpected to be EBITDA positive the year after, has now started to generaterevenue in some of its joint venture partnerships. In the meantime, the Groupcontinues to finance the expansion of these divisions from its rental income anddevelopment surpluses. Rent received in the nine months ended 30 September 2007amounted to £9.9m (2006: £7.7m), the rent roll at 30 September 2007 was £13.5mand the rent roll at 26 November 2007 has now risen to £16.6m as a result ofseveral medical centre developments completing since 30 September 2007. A second interim dividend of 1.75p per Ordinary Share has been declared toshareholders on the register as at 7 December 2007 (ex-dividend date 5 December2007), in addition to the interim dividend paid of 2.33p. In the absence ofunforeseen circumstances the Company intends to pay a final dividend in respectof the 15 month period to 31 March 2008. Financing Net asset value as at 30 September 2007 was up 5.4% to £281.9m equivalent to121.0p per Ordinary Share on a fully diluted basis compared to 114.3p at 31December 2006. Net debt as at 30 September 2007 was £102.2m. The Company's principal short-term loan facility has been increased from £100mto £165m. The interest rate margin on this is 0.65% and the Company benefitsfrom an interest rate swap which is currently £150m, but rises to £200m at 31December 2007, for 20 years at 4.59%. National Australia Bank has recently approved a new five year £250m facilityutilising its low cost securitisation conduit for which the legal documentationis being processed and draw down will be available in the first quarter of 2008.The margin on this facility will be 0.45%. While such a facility is dependentupon the bank's securitisation conduit being able to issue commercial paper, thebank provides a liquidity facility of £255m in addition to guarantee funding inthe event of market disruption impacting on the issue of commercial paper. Whilst the above arrangements provide significant headroom, we are indiscussions with our bankers to increase our facilities further next year. Operating review During the last three months, the Group has demonstrated its resilience to threekey market factors namely: the declining commercial property market; category 'M' pricing for certain pharmaceutical products; and the recent Governmentannouncements regarding the cancellation of certain Independent Sector TreatmentCentre (ISTC) contracts. As at 30 June 2007, investment property on the Company's balance sheet wasindependently valued by Savills Commercial Limited at a net initial yield of5.31% representing a net equivalent yield of 5.75%. Whilst the wider commercialproperty market has experienced declines since the summer, we continue tobelieve that our overall valuation yield remains appropriate at the currenttime. Assura's properties are generally let on long leases where rent ispredominantly reimbursed out of the NHS annual budget. At the same time, rentalgrowth, as evidenced by recent rent review settlements, continues to average inexcess of 4% per annum. The weighted average unexpired term is currently 18.75years. The yield on cost of all capital commitments continues to average 6% andwhilst revaluation surpluses have been credited on completed properties, thereremain ongoing revaluation surpluses on committed projects and developmentproperties still under construction. The Pharmacy Division continues to expand the number of branches and will meetor exceed its 20 opening target by the end of this calendar year. It expects tohave at least 25 open by the end of March 2008 and at least 40 by the end of2008. In spite of a gross margin decline as a result of the Category 'M'pricing regime, the Group continues to achieve a gross margin in excess of 28%and is on target to achieve 30% by 2009. This is supported by our integratedpharmacy model where additional services income is assisting gross marginperformance. We are continuing to progress plans for a direct to consumer channel for thepharmacy business and this concept will be piloted over the coming months. Thismodel will provide patients with a convenient and efficient way of takingdelivery of their medicines at their home or place of work in addition tophysical branch locations. The Medical Division is continuing to form joint venture partnerships with GPsand locality groups and has now formed nine joint ventures serving over 1mpatients. Out-patient services have commenced for four different specialties inthree joint ventures and we remain focused on expanding the number of servicesprovided across our joint ventures and signing up the new partnerships which arein our pipeline. We are also finding opportunities to expand or 'swell' ourexisting joint venture partnerships with GPs who did not join at the time oftheir formation. We remain on target to have joint ventures serving 1.5mpatients by the end of March 2008 and 5.0m patients by the end of 2010. We are finding that good progress is being made within Primary Care Trusts(PCTs) to implement the 'Any Willing Provider' guidance and we continue to workwith the PCTs and Acute Trusts in order to enable efficient implementation oflocally procured services. By engaging as a 'willing provider' the Company isnot reliant upon centrally procured contracts with guaranteed volumes andtariffs which may subsequently be revoked, such as those awarded to the ISTCs. Industry trends and outlook The Government is committed to the private sector playing a role in theimprovement of primary care services and has recently published guidance toallow private and NHS providers to be on a level playing field. We areencouraged by the multitude of opportunities for locally procured private sectorprovision in the NHS and the emphasis on patients' rights to have personalisedcare closer to home. We believe that our integrated business model will ensurethat we become one of the UK's leading health care provider organisations givingpatients a clinically-led and locally-driven service for out-patient, diagnosticand day case procedures. We are also encouraged by plans for the reform of the NHS and Lord Darzi'srecommendation that a network of polyclinics be created to 'provide a new kindof community based care at a level that falls between the current generalpractice and the traditional district general hospital'. Subsequent to this,Lord Darzi's Interim Report on his review of the NHS in England calls for anexpansion of the 'one stop shop' model of primary care with new health centresoffering community based services to meet local need. The Secretary of State hasannounced new funding to help secure this vision and to deliver 150 GP-runhealth centres around the country which will be open for extended hours. Thismirrors our national strategy to support and increase the provision ofout-patient and diagnostic services close to patient homes through investment inGP support services and facilities thereby enabling our joint venture GP groupsto become highly effective provider organisations. Richard BurrellChief Executive Officer27 November 2007 Assura Group Limited Independent Review Report to Assura Group Limited For the period from 1 January 2007 to 30 September 2007 Introduction We have been engaged by the Company to review the financial information for thenine months ended 30 September 2007 in the interim financial report whichcomprises the Unaudited Consolidated Income Statement, Unaudited ConsolidatedBalance Sheet, Unaudited Consolidated Statement of Changes in Equity, UnauditedConsolidated Cash Flow Statement, and the related notes 1 to 22. We have readthe other information contained in the interim financial report and consideredwhether it contains any apparent mis-statements or material inconsistencies withthe financial information. This report is made solely to the Company in accordance with guidance containedin ISRE 2410 (UK and Ireland) 'Review of Interim Financial Information Performedby the Independent Auditor of the Entity' issued by the Auditing PracticesBoard. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the Company, for our work, for this report,or for the conclusions we have formed. Directors' responsibilities The interim financial report is the responsibility of, and has been approved by,the Directors. The Directors are responsible for preparing the interim financialreport in accordance with the Listing Rules of the United Kingdom's FinancialServices Authority, which require that the accounting policies and presentationapplied to the interim figures should be consistent with those applied inpreparing the preceding annual accounts except where any changes, and thereasons for them, are disclosed. The annual financial statements of the Group are prepared in accordance withInternational Financial Reporting Standards (IFRS). The financial informationincluded in this interim financial report has been prepared in accordance withthe Listing Rules of the United Kingdom's Financial Services Authority. Our responsibility Our responsibility is to express to the Company a conclusion on the financialinformation in the interim financial report based on our review. Scope of review We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, "Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity" issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly, wedo not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believethat the financial information for the nine months ended 30 September 2007 isnot prepared, in all material respects, in accordance with the accountingpolicies outlined in Note 2, which comply with IFRS and which the group intendsto apply in its financial statements for the period ended 31 March 2008, and inaccordance with the Listing Rules of the United Kingdom's Financial ServicesAuthority. Ernst & Young LLPGuernsey, Channel Islands27 November 2007 Assura Group Limited Unaudited Consolidated Income Statement For the period from 1 January 2007 to 30 September 2007 1/01/2007 1/01/2006 to to 30/09/2007 30/09/2006 Unaudited Unaudited Notes £'000 £'000 Revenue 4 22,542 10,521Cost of sales 5 (8,020) (1,496) ______ ______Gross profit 14,522 9,025 Administrative expenses 6 15,113 7,330Other expenses 7 2,431 594 _____ _____ 17,544 7,924 _____ _____ Group trading (losses)/profit (3,022) 1,101 Unrealised surplus on revaluation of investment property 8 11,177 7,645Share of post tax profits of associates and joint ventures accounted for using the equity method 9 1,978 - _____ _____ Group operating profit before exceptional items 10,133 8,746 Exceptional pharmacy establishment cost 10 - (1,105)Termination of investment management servicesFees received after payment to sub-advisers and other expenses 13,844 -Goodwill impairment (7,914) - 11 5,930 - _____ _____ Group operating profit from continuing operations 16,063 7,641 Finance revenue 12 11,233 5,081Finance costs 13 (1,029) (1,209) _____ _____ 10,204 3,872 _____ _____ Profit before taxation 26,267 11,513Taxation (1) (17) _____ _____ Profit for the period from continuing operations 26,266 11,496 _____ _____ Discontinued operationsProfit/(loss) for the period from discontinued operations 14 155 (154) _____ _____ Profit for the period 26,421 11,342 _____ _____ Profit for the year attributable to:Equity holders of the parent 26,637 11,166Minority interest (216) 176 _____ _____ 26,421 11,342 _____ _____Earnings per share (pence)Basic earnings per share on profit for the period 17 11.79p 6.04pDiluted earnings per share on profit for the period 17 11.55p 6.00pDividend per share 15 4.00p 3.34p The accompanying notes on pages 12 to 16 form an integral part of the financialstatements Assura Group Limited Unaudited Consolidated Balance Sheet As at 30 September 2007 30/09/2007 30/09/2006 31/12/2006 Unaudited Unaudited Audited Notes £'000 £'000 £'000Non-current assets Investment property 8 248,147 177,439 213,132 Development property 62,663 39,551 35,231 Investment in associates 4,511 1,888 1,070 Investment in joint ventures 483 - 869 Intangible assets 34,571 35,279 36,998 Property, plant and equipment 11,556 2,529 5,973 Available for sale financial assets 9,446 - - Other investments 500 - 250 Derivative financial instruments at fair value 12,708 832 2,202 _____ _____ _____ 384,585 257,518 295,725 _____ _____ _____Current assets Cash and cash equivalents 13,448 13,322 18,842 Debtors 15,519 9,592 9,892 Pharmacy inventories 1,131 599 567 Property work in progress 1,522 10,943 3,239 _____ _____ _____ 31,620 34,456 32,540 _____ _____ _____Total assets 416,205 291,974 328,265 _____ _____ _____Current liabilities Bank overdraft 4,489 - 2,135 Creditors 16,468 10,137 11,793 Corporate tax and other taxes 894 322 599 _____ _____ _____ 21,851 10,459 14,527 _____ _____ _____Non-current liabilities Long-term loan 111,202 16,996 44,949 Payments due under finance lease 1,219 1,312 1,289 _____ _____ _____ 112,421 18,308 46,238 _____ _____ _____Total liabilities 134,272 28,767 60,765 _____ _____ _____Net assets 281,933 263,207 267,500 _____ _____ _____Represented by:Capital and reserves Share capital 18 22,640 22,593 22,593 Share premium 697 226,984 226,678 Distributable reserve 227,419 20,244 15,564 Retained earnings 30,494 (6,568) 1,852 Revaluation reserve 683 - 106 Deferred consideration reserve - - 790 _____ _____ _____ 281,933 263,253 267,583 _____ _____ _____Minority interests - (46) (83) _____ _____ _____Total equity 281,933 263,207 267,500 _____ _____ _____ Basic net asset value per Ordinary Share 19 124.53p 116.50p 118.40p _____ _____ _____Diluted net asset value per Ordinary Share 19 121.01p 112.48p 114.32p _____ _____ _____ The unaudited financial statements on pages 7 to 11 were approved at a meetingof the Board of Directors held on 27 November 2007 and signed on its behalf by: Dr John Curran Peter PichlerDeputy Chairman Director The accompanying notes on pages 12 to 16 form an integral part of the financialstatements. Assura Group Limited Unaudited Consolidated Statement of Changes in Equity For the period from 1 January 2007 to 30 September 2007 Share Share Distributable Retained Capital Premium Reserve Earnings £'000 £'000 £'000 £'000 1 January 2007 22,593 226,678 15,564 1,852Revaluation of land & buildings - - - -Net gains on available for sale financial assets - - - -Profit/(loss) attributable to equity holders and minority interest - - - 26,637Total income and expense for the period - - - 26,637Issue of Ordinary Shares 47 697 - -Deferred share-based consideration - - - -Transfer from share premium1 - (226,678) 226,678 -Dividends on Ordinary Shares - - (14,823) -Minority interest disposed of in period - - - (299)Cost of employee share-based incentives - - - 2,304 _____ _____ _____ _____30 September 2007 22,640 697 227,419 30,494 _____ _____ _____ _____ 1 January 2006 14,240 122,240 - (18,328)Profit attributable to equityholders and minority interest - - - 11,166Total income and expense for the period - - - 11,166Issue of Ordinary Shares, net of costs 9,160 129,744 - -Treasury shares (807) - - -Transfer from share premium2 - (25,000) 25,000 -Dividends on Ordinary Shares - - (4,756) -Cost of employee share based incentives - - - 594 _____ _____ _____ _____30 September 2006 22,593 226,984 20,244 (6,568) _____ _____ _____ _____ Revaluation Minority Deferred Total Reserve Interest Consideration Reserve £'000 £'000 £'000 £'000 1 January 2007 106 (83) 790 267,500Revaluation of land & buildings 417 - - 417Net gains on available for sale financial assets 160 - - 160Profit/(loss) attributable to equity holders and minority interest - (216) - 26,421Total income and expense for the period 577 (216) - 26,998Issue of Ordinary Shares - - - 744Deferred share-based consideration - - (790) (790)Transfer from share premium1 - - - -Dividends on Ordinary Shares - - - (14,823)Minority interest disposed of in period - 299 - -Cost of employee share-based incentives - - - 2,304 _____ _____ _____ _____30 September 2007 683 - - 281,933 _____ _____ _____ _____ 1 January 2006 - (222) - 117,930Profit attributable to equityholders and minority interest - 176 - 11,342Total income and expense for the period - 176 - 11,342Issue of Ordinary Shares, net of costs - - - 138,904Treasury shares - - - (807)Transfer from share premium2 - - - -Dividends on Ordinary Shares - - - (4,756)Cost of employee share based incentives - - - 594 _____ _____ _____ _____30 September 2006 - (46) - 263,207 _____ _____ _____ _____ Share Share Distributable Retained Capital Premium Reserve Earnings £'000 £'000 £'000 £'000 1 January 2006 14,240 122,240 - (18,328)Revaluation of land & buildings - - - -Profit/(loss) attributable to equity holders and minority interest - - - 18,900Total income and expense for the period - - - 18,900Issue of Ordinary Shares, net of costs 9,160 129,438 - -Treasury shares (807) - - -Transfer from share premium2 - (25,000) 25,000 -Minority interest acquired in year - - - -Dividends on Ordinary Shares - - (9,436) -Cost of employee share-based incentives - - - 1,280Deferred share-based consideration - - - - _____ _____ _____ _____31 December 2006 22,593 226,678 15,564 1,852 _____ _____ _____ _____ Revaluation Minority Deferred Total Reserve Interest Consideration Reserve £'000 £'000 £'000 £'000 1 January 2006 - (222) - 117,930Revaluation of land & buildings 106 - - 106Profit/(loss) attributable to equity holders and minority interest - (471) - 18,429Total income and expense for the period 106 (471) - 18,535Issue of Ordinary Shares, net of costs - - - 138,598Treasury shares - - - (807)Transfer from share premium2 - - - -Minority interest acquired in year - 610 - 610Dividends on Ordinary Shares - - - (9,436)Cost of employee share-based incentives - - - 1,280Deferred share-based consideration - - 790 790 _____ _____ _____ _____31 December 2006 106 (83) 790 267,500 _____ _____ _____ _____ 1 Following an application to the Royal Court of Guernsey, £226,678,000 was transferred from Share Premium account to Distributable Reserve on 29 June 2007. 2 Following an application to the Royal Court of Guernsey, £25,000,000 was transferred from Share Premium account to Distributable Reserve on 2 June 2006. The accompanying notes on pages 12 to 16 form an integral part of the financialstatements Assura Group Limited Unaudited Consolidated Cash Flow Statement For the period from 1 January 2007 to 30 September 2007 1/01/2007 1/01/2006 to to 30/09/2007 30/09/2006 Unaudited Unaudited £'000 £'000Operating activitiesRent received 10,413 7,672Revenue from pharmacies 9,050 1,116Fees received 3,629 1,733Payment received on termination of investment management services 10,698 -Termination payments to sub-advisers (5,901) -Bank and other interest received 730 777Expenses paid (14,398) (5,089)Purchases by pharmacies (6,518) (810)Interest paid and similar charges (3,093) (1,516) _____ _____ Net cash inflow from operating activities 4,610 3,883 _____ _____ Investing activitiesPurchase of investment property (20,037) (19,940)Purchase of development property (40,260) (41,667)Purchase of investments (500) -Purchase of property, plant, equipment and intangibles (11,953) (2,779)Debt sold with subsidiary 4,265 -Cost of property work in progress (433) (10,518)Loans advanced to associated companies (1,194) (520)Loan repaid by joint venture 117 -Cash paid on acquisition of subsidiaries - (13,970)Costs incurred on acquisition of subsidiaries - (1,336)Acquisition of subsidiaries - cash acquired - 3,403 _____ _____ Net cash outflow from investing activities (69,995) (87,327) _____ _____ Financing activitiesIssue of Ordinary Shares 744 110,039Issue costs paid on issuance of Ordinary Shares - (4,206)Dividends paid (9,360) (4,756)Drawdown of term loan 66,253 56,066Repayment of term loan - (64,000)Loan issue costs - (123) _____ _____ Net cash inflow from financing activities 57,637 93,020 _____ _____ (Decrease)/increase in cash and cash equivalents (7,748) 9,576 _____ _____ Cash and cash equivalents at 1 January 16,707 3,746 _____ _____ Cash and cash equivalents at 30 September 8,959 13,322 _____ _____ Cash and cash equivalents 13,448 13,322Bank overdraft (4,489) - _____ _____Cash and cash equivalents at 30 September 8,959 13,322 _____ _____ The accompanying notes on pages 12 to 16 form an integral part of the financialstatements Assura Group Limited Notes to the Unaudited Financial Statements For the period from 1 January 2007 to 30 September 2007 1. The Company was incorporated on 7 October 2003 and commenced trading following Admission of its shares to the Official List of the London Stock Exchange on 21 November 2003. 2. The results for the nine months to 30 September 2007 have been prepared on the basis of the accounting policies that will be in place at 31 March 2008. The results for the nine months to 30 September 2007 and 2006 are unaudited. The interim accounts do not constitute statutory accounts. The balance sheet as at 31 December 2006 has been extracted from the Company's 2006 annual report and financial statements. The auditor has reported on the 2006 accounts and the report was unqualified. Assura Group has extended its year end by three months and will report a 15 month period to 31 March 2008, as a result a second set of interims have been prepared. 3. All revenue and operating profit arose from continuing operations except those included in note 14 below. 4. Revenue 2007 2006 £'000 £'000Rent receivable 9,863 7,672Revenue from pharmacies 9,050 1,116Fund management and other fees receivable 3,629 1,733 _____ _____ 22,542 10,521 _____ _____ 5. Cost of sales 2007 2006 £'000 £'000Property management expenses 782 680Purchases by pharmacies 6,518 810Fund management direct costs 720 6 _____ _____ 8,020 1,496 _____ _____ 6. Administrative expenses 2007 2006 £'000 £'000Investment Manager's fees - 1,354Salaries and other staff costs 8,576 3,077Premises costs 2,218 248Other administrative expenses 4,319 2,651 _____ _____ 15,113 7,330 _____ _____ Administrative expenses increased from 15 May 2006 when the Company acquired itsformer fund manager and, from that date, employed its own internal managementteam. 7. Other expenses 2007 2006 £'000 £'000Cost of employee share-based incentives 2,431 594 _____ _____ 8. Unrealised surplus on revaluation of investment property The figures for investment properties at 30 September 2007 (based on 30 June2007 valuation), 30 September 2006 (based on 30 June 2006 valuation) and 31December 2006 are based on valuations determined by Savills Commercial Limited. 9. Share of post tax profits and losses of associates and joint venturesaccounted for using the equity method 2007 2006 £'000 £'000Share of profits of associates 2,247 -Share of losses of joint ventures (269) - _____ _____ 1,978 - _____ _____ 10. Exceptional pharmacy establishment cost 2007 2006 £'000 £'000Exceptional pharmacy establishment cost - 1,105 _____ _____ The Company entered into an arrangement with Pharma-e Limited, of which JohnCurran is a Director and shareholder, to compensate Pharma-e Limited forconsultancy services provided to the Group in connection with establishment ofthe pharmacy business of Assura Pharmacy Limited. The consideration was met bythe issue of 650,000 Ordinary Shares in the Company to Pharma-e Limited. 11. Termination of investment management services 2007 2006 £'000 £'000 Fees received 19,985 -Fees payable to sub-advisers (5,901) -Other expenses (240) -Goodwill impairment (7,914) - _____ _____ 5,930 - _____ _____ On 16 August 2007 the Company announced the termination of the investmentmanagement services provided by Assura Fund Management LLP, a subsidiary of theCompany, to Stobart Group Limited (formerly The Westbury Property Fund Limited),subject to shareholder approval by the latter company. Termination of the services was approved by the shareholders of Stobart GroupLimited, at an Extraordinary General Meeting held on 19 September 2007, theprofit for the Group from the payment of a termination fee by Stobart GroupLimited is after allowance for payments to sub-advisers, taxation and estimatedgoodwill impairment. That part of the payment which related to a performance fee due to the Companywas taken in shares in Stobart Group Limited. As a result the Company holds6,382,744 (2.7%) Ordinary Shares in Stobart Group Limited which are availablefor resale subject to a lock-in of two years commencing on the date of issue ofthe shares. The share price at date of issue was 145.5p and at 30 September 2007148.0p. 12. Finance revenue 2007 2006 £'000 £'000Bank and other interest 727 777Unrealised profit on revaluation of derivative financial instrument 10,506 4,304 _____ _____ 11,233 5,081 _____ _____ The Company has entered into a long-term interest rate swap at a rate of 4.59%on a principal sum of £100m up to 30 June 2007, £150m up to 31 December 2007 and£200m from then until 31 December 2027. Based on the actual 20-year swap rate at30 September 2007, the fair value of this swap was £12,708,000 at 30 September2007 (£832,000 at 30 September 2006, £2,202,000 at 31 December 2006). 13. Finance costs 2007 2006 £'000 £'000Long-term loan interest payable 3,805 1,230Interest capitalised on developments (2,090) (294)Swap interest (967) (72)Non-utilisation fees 57 142Amortisation of loan issue costs 201 182Bank charges 23 21 _____ _____ 1,029 1,209 _____ _____ 14. Discontinued operations On 12 September 2007 the Group disposed of its 70% holding in BHE DevelopmentsLimited whose activity was property development for a consideration of £1. Thebusiness, which is loss making, is outside the scope of Assura's core business. The results of BHE Developments Limited for the period to 12 September 2007 and30 September 2006 are presented below : 2007 2006 £'000 £'000Revenue 36 -Administrative expenses (758) (154)Finance revenue 3 - _____ _____Loss before taxation (719) (154)Gain on disposal of discontinued operations 874 - _____ _____Profit/(loss) for the period from discontinued operations 155 (154) _____ _____ At the date of disposal the net liabilities of BHE Developments were £874,000,and the net assets of the company at 30 September 2006 were £56,000. The netcash outflow to the date of disposal was £719,000 and for the period to 30September 2006 was £154,000. 15. Dividends paid on Ordinary Shares Number of Rate 2007 Number of Rate 2006 Ordinary Shares Ordinary pence £'000 Shares pence £'000 Final dividend for 2006 paid 4 May 233,998,471 4.00 9,360 142,403,847 3.34 4,7562007 (declared 27 March 2007) _____ _____ _____ _____Dividends paid 4.00 9,360 3.34 4,756 _____ _____ _____ _____ 16. On 18 September 2007 an interim dividend for 2007 of 2.33p per OrdinaryShare, to be paid out of Distributable Reserves, was declared to shareholders onthe register at 28 September 2007 giving a total amount of £5,463,000 based on234,463,115 shares currently in issue. This has been accrued for in the accountsas it was paid on the 19 October 2007. 17. The basic profit per Ordinary Share is based on the profit attributableto equity holders of the parent for the period of £26,637,000 (2006:£11,166,000) and on 225,960,636 Ordinary Shares (2006: 184,850,330), being theweighted average number of Ordinary Shares in issue in the respective period,excluding treasury shares. The diluted profit per Ordinary Share is based on the profit for the period of£26,637,000 (2006: £11,166,000) and on 230,624,040 Ordinary Shares (2006:186,116,374), being the weighted average number of Ordinary Shares in issue inthe respective period, excluding treasury shares. 18. Share capital £'000Consolidated and Company Authorised 300,000,000 Ordinary Shares of 10p each 30,000 20,000,000 Preference Shares of 10p each 2,000 _____ 32,000 _____ 2007 2006 Number of Share Number of Share Shares Capital Shares Capital £'000 £'000Ordinary Shares issued and fully paid At 1 January 233,998,471 23,400 142,403,847 14,240 Issued in period 464,644 47 91,594,624 9,160 _____ _____ _____ _____ 234,463,115 23,447 233,998,471 23,400 Treasury shares (8,066,768) (807) (8,066,768) (807) _____ _____ _____ _____Total Share Capital 226,396,347 22,640 225,931,703 22,593 _____ _____ _____ _____ The treasury shares were issued in May 2006 to the Assura Group Limited EmployeeBenefit Trust and are held for the purposes of the Assura Group LimitedExecutive Incentive Plan. 19. The basic net asset value per Ordinary Share is based on the net assetsattributable to the ordinary shareholders of £281,933,000 (30 September 2006£263,207,000, 31 December 2006: £267,500,000) and on 226,396,347 (30 September2006: 225,931,703, 31 December 2006: 225,931,703) Ordinary Shares in issue atthe balance sheet date excluding treasury shares. The diluted net asset value per Ordinary Share is based on the net assetsattributable to the ordinary shareholders of £281,933,000 (30 September 2006:£263,207,000, 31 December 2006: £267,500,000) and on 232,981,022 (30 September2006: 233,998,471, 31 December 2006: 233,998,471) Ordinary Shares in issue atthe balance sheet date excluding treasury shares. 20. On 17 October 2007, the Group acquired the entire share capital ofUrosonics Limited and Cystoscope Limited for a consideration of £1,451,000. Theconsideration was satisfied by the issue of 750,000 Ordinary Shares in theCompany. 21. A copy of this statement has been sent out to every shareholder. Furthercopies are available from the Company's registered office or from the websitewww.assuragroup.co.uk. 22. The interim financial statements were approved at a meeting of the Boardof Directors held on 27 November 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Assura