Primary Health Properties eyes new health care bill
Primary Health Properties, the property investment firm, has reported declining pre-tax profits but is rubbing its hands at the prospect of financing the new facilities demanded by the government's controversial Health and Social Care Act.
Primary Health Properties, the property investment firm, has reported declining pre-tax profits but is rubbing its hands at the prospect of financing the new facilities demanded by the government's controversial Health and Social Care Act.
Rental income in the six months to the end of June came in at £16.21m, an increase of 6.3% on the prior year, while operating profit grew 6.5% to £13.4m.
Profits before tax came in at £4.2m, down sharply on the same point in 2011 when the figure stood at £11.9m. This may explain why the share price dropped 0.74% in Wednesday morning trading.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
A recent share issue has slightly dented the net asset value per share, bringing it down from 318.7p in December to 314.9p by the end of June.
The second interim dividend has been agreed at 9.25p, up on the 9p paid last year and the 16th successive dividend growth achieved by PHP.
The group's Chairman, Graeme Elliot also commented on the Health and Social Care Act, which he believes may create more chances for PHP to invest in health properties: "The Act brings major structural changes to the delivery of health care in England, transferring the commissioning of care to more localised Clinical Commissioning Groups.
"This supports a UK wide drive to deliver an increasing number of healthcare services within local communities. To do this efficiently and effectively, an increasing number of high quality primary care facilities will need to be provided. The Group is well placed to provide this investment..."
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Do you qualify for the Winter Fuel Payment if you live abroad?
The Winter Fuel Payment will be means tested for expats living in Europe, in line with the new rules impacting those in the UK. But a quirk in the system means not all countries are eligible.
By Katie Williams Published
-
What the Employment Rights Bill means for your job
New workplace reforms are set to give employees new rights to benefits and flexible working
By Marc Shoffman Published