Posted on June - 24 - 2011
Assura sells pharmacy division for £39.3m
MEDICAL centre developer Assura has sold its pharmacy division for £39.3m, so it can focus on property development and investment.
The division, which includes 36 pharmacy stores and a pipeline of five projects due to complete in the next 15 months, was bought by Bolton-based Cohens Group.
The deal means Warrington-based Assura has returned to its roots as a company focused on building medical centres, which house GPs and other outpatient healthcare services.
Stock market-listed Assura also said yesterday that it had seen a strong increase in both profits and sales for the year to March.
Pre-tax profits stood at £11.2m – up from £2.9m, in 2010 – as revenues rose 11.3% to £62.1m.
Assura’s chief executive. Nigel Rawlings, said: “The board is pleased to have secured an excellent buyer for Assura’s pharmacy business following a competitive process at a valuation that fully reflects its strong growth, good results and licence pipeline.
“This disposal completes the return of Assura to its origins as a primary healthcare property company.
“With a high-quality portfolio, a very competitive cost base and a clear focus we are very well positioned to deliver value to our shareholders.”
The pharmacy business generated revenues of £34.1m in the year to March 31, with a pre-tax profit of £2.6m.
Assura said the jobs of all in-store staff are safe, while 14 back-office workers will be given the opportunity to relocate from Daresbury to Bolton.
In March last year, Assura sold a majority stake in its Assura Medical business to Sir Richard Branson’s Virgin group.
Mr Rawlings said the business, which provides healthcare services in partnership with GPs, was proving a drain on Assura’s resources.
In January, Assura announced it was buying AH Medical Properties for £28.3m, adding another 52 medical centres to its portfolio.
Mr Rawlings said: “Assura has today completed its transformation to a focused primary healthcare property development and investment company.
“We have built a robust property portfolio with assets worth £520m, with a weighted average lease length of 16.5 years and 87% of rents reimbursed by the NHS.
“A strong increase in revenues on a much reduced cost base has delivered a quadrupling of profits which has enabled us to resume our dividend.
“With a more robust financial position, a leaner, more focused business, and a healthy development pipeline Assura now has the platform and resources to build an increasingly valuable business for its shareholders.”
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