LONDON (Alliance News) - Primary Health Properties PLC on Thursday noted continues strong demand for healthcare services across the UK and Republic of Ireland, and announced the appointment of a new finance director.
The primary healthcare facilities investor said its net rental income rose 6.9% in 2016 to GBP66.6 million from GBP62.3 million a year earlier, after it bought GBP74.2 million of fully let assets during the year and undertook "successful asset management activity".
However, the group's pretax profit dipped to GBP43.7 million from GBP56.0 million the prior year, after the surplus on property valuation fell to GBP20.7 million from GBP39.8 million with underlying like-for-like growth of 2.3%.
Primary Health said the long-term impact of the Brexit decision will be "unknown" until government negotiations have concluded. However demands being placed on the NHS will continue to increase and the ageing population with "increased incidence of chronic conditions" will bring more pressure on the NHS budget, the group said.
"Leaving the EU will not change this and Primary Health will continue to move forward with its strategy unchanged," the company said, pointing to plans to provide new premises and enlarge and enhance exiting properties, creating larger, hub-style medical centres.
Primary Health declared a total dividend of 5.125 pence per share for the year, up 2.5% from the 5.00p per share offered the prior year, and declared a first quarterly interim dividend for 2017 of 1.31p per share.
Primary Health said it continues to invest capital raised in 2017 in further earnings-accretive primary care properties, and has a strong pipeline of opportunities both in the UK and in the Republic of Ireland, of around GBP72.0 million and EUR53.0 million respectively.
"The demand for healthcare services remains higher than ever and, as a result, the role played by primary care in communities across the UK and the Republic of Ireland is set to increase," said Managing Director Harry Hyman.
"Primary Health remains alive to the strong pipeline of potential acquisition and forward funding opportunities in both the UK and Ireland and is in a strong position to grow its portfolio," Hyman added.
In a separate statement, Primary Health appointed Richard Howell as its new finance director, to replace Phil Holland effective from March 31.
Howell is currently finance director of FTSE 250 property manager LondonMetric Property PLC's joint ventures, and previously served as finance controller at Brixton PLC, which was formerly listed on the FTSE 250 and was bought by warehouse investor SEGRO PLC in 2009.
Howell is joining Primary Health's advisor Nexus Tradeco Ltd on March 13, where he will provide services under the advisory agreement terms, to facilitate a smooth takeover.
Shares in Primary Health were up 0.2% at 107.75p on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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LondonMetric (LMP)
Primary Health (PHP)