Public Service Properties drops again

Shares in Public Service Properties Investments (PSPI) fell another ten percent on Monday after it reported a fall in net asset value in 2011 and warned about its financial health going forward.

The care home company's share price has fallen 68.5% in the last month.

PSPI said net asset value per share had fallen to 108.3p in 2011, down from 130.6p the year before.

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Its investment properties were valued at £256.4m, down from £272.2m in 2010.

Adjusted earnings before tax came in at £10.4m or 10.11p per share, up from £8m the year before.

Total rental income increased by 3.3% to £17.2m, the company said.

PSPI confirmed it was pushing on with negotiations with the European Care Group, the company's sole UK tenant, with a view to combining a majority of PSPI's UK assets with ECG's assets and businesses.

It then plans to refinance of the combined group's assets and businesses, it added, with further announcements to come "in due course".

"The economic climate in the company's various markets remains challenging," said Patrick Hall, Chairman of PSPI.

"As indicated in the company's announcement on 2 April 2012, the outcome of the discussions with ECG and/or refinancing of the group's debt maturing in September 2012 may have a material effect on the future value of the group's assets and the level of its operational profitability," he warned.