HM Company News

Primary Health Properties, the real estate investment trust (Reit) providing primary healthcare facilities to the NHS, has announced a year of sales and acquisitions with further acquisition opportunities ahead. In its interim management statement for the period from 1 January 2013 to 15 April 2013 it has announced annualised contracted rent roll, including commitments, of £39.0m at 31 March 2013 on a portfolio which is 99.7% let. The directors believe that initial property yields in the group's portfolio have remained stable at approximately 5.72%.

Ramsay Healthcare’s report and accounts for the year to 30 June 2012 shows UK revenues up by 3.1% to £356.1m (2011: £345.4m). Cost of sales was £192.3m (2011: £187.3m) and administrative expenses (including exceptional charges) were £154.6m (2011: £146.6m) resulting in an operating profit before exceptional items and IAS 17 rental expenses of £9.3m (2011: £11.6m).

Nuffield Health annual report and accounts for the period to 31 December 2012 showed a12% rise in turnover to £645.0m (2011: £575.0m). Cost of services was £606.1m (2011: £545.5m). Support and governance costs of £2.5m (2011: £20.5m) and net interest payments of £18.3m (2011: £17.2m) led to a surplus on ordinary activities before taxation of £4.1m (2011: £3.8m). Hospitals account for 70% of Nuffield Health’s turnover. In 2012, the division’s revenues rose almost 9% to £462.0m (2011: £424.0m). The directors say the increases were achieved largely as a result of a sharp increase in the volume of work we carried out for the NHS.’ Revenue from its wellbeing services were £195.0m (2011: £161.0m). Central and other services’ accounted for losses of £10.6m (2011: loss of £8.9m). EBITDA excluding exceptionals increased 14% to £82m (2011: £72m). The directors claim its total debt is three times EBITDA, much lower than others in our sector whose debt can be more than 10 times EBITDA’.

Bupa-owned Medical Services International (MSI), which operates London’s Cromwell Hospital, directors’ report and financial statements for the year ended 31 December 2012 saw an increase in turnover to £83.2m (2011: £72.9m). Net operating expenses were £81.7m (2011: £69.2m). After financing charges of £611,000 profit on ordinary activities before taxation was £944,000 (£3.7m).

Circle Holdings, the private hospital group, announced its results for the year ended 31 December 2012, revealing a significant increase in revenue under management but a loss overall.

For HSF Health Plan, the health cash plan provider, for the year ended 31 December 2012, new policyholders increased 2.6% to 9,200 taking the total number of policyholders to 101,000. Total premiums over the year were £23.8m (2011: £23.5m) but less reinsurance premiums of £1.1m (2011: £1.1m) net premiums earned totalled £22.7m (2011: £22.4m). Claims paid were £17.2m (2011: £17.3m). Net operating expenses were £265,000 (2011: £431,000). Investment income increased over the year to £1.0m (2011: £459,000). Profit on ordinary activities before tax was £1m (2011: £970,000).

Bupa, the UK’s leading private medical insurance provider, has published its annual report and financial statements for the year to 31 December 2012, showing revenues up by just 2% compared with Axa PPP’s rising 4%. Bupa still has the much larger market share in terms of premium take, with gross premiums (minus outward reinsurance premiums) of £2,262.5m (2011: £2,243.7m). Taking out change in gross provision for unearned premiums of £13.3m (2011: £38.8m) and reinsurers’ share of change in the gross provision for unearned premiums of £28,000 (2011: £805,000), net premiums earned were £2,249.1m (2011: £2,204.8m). After other technical income, net of reinsurance, total technical income was £2,252.1m (2010: £2,208.1m). Claims incurred totalled £1,631.4m (2011: £1,613.5m). An underwriting contribution of £620.7m (2011: £594.7m) minus net operating expenses of £500.6m (£460.1m) meant the balance on the technical account was £120.1m (2011: £134.5m). Investment income and unrealised gains on investments (minus expenses and losses) were up to £36.0m (2011: £25.9m) meaning the profit before tax was £156.1m (2011: £160.3m).

Angel Acquisitions Ltd, an acquisition vehicle, owned by ACE Holdco, privately-held provider of business support services and Tosca Opportunity, the pooled investment fund, has bought Healthcare Locums plc.

The PMI Health Group, the employee healthcare services group, report and consolidated financial statements for the year to 30 June 2012 showed turnover up on the year to £9.5m (2011: £8.9m). Administrative expenses were high at £8.0m (£7.5m) leading to profit before tax of £1.5m (£1.4m). EBITDAR was £1.9m (2011: £1.8m).

Bupa, the private medical insurance and global healthcare company, in its preliminary results for the year ended 31 December 2012, showed revenue up 1% for the UK to £2.53bn from £2.51bn in 2011. Profits however (for reportable segments including share of post taxation results of equity accounted investments) were down 22% to £110m (2011: £141m).