Assura sees FY ahead of expectations

5th Apr 2011 15:04

Primary healthcare operator Assura said trading results for the year ended 31 March 2011 were ahead of company expectations following a strong performance from its pharmacy business.Revenue from wholly-owned pharmacies is expected to exceed £33m in the year to 31 March compared to sales of £31m in 2010.However Assura, which recently bought AH Medical Properties, warned that margins had been hit by NHS cutbacks."As previously reported, margins since 30 September 2010 have been affected by NHS price cuts and further cuts have been announced very recently," it said in a company statement.The group said it hopes to mitigate as much of the impact through further cost savings. It also expects to open a string of new pharmacies in the next 18 months.In addition the primary care centre operator said the sale of its 75% stake in Assura Medical to Virgin Healthcare had resulted in a substantial overhead reduction.Meanwhile Assura's bank facility with National Australia Bank has been reduced to £126m and will be refinanced well ahead of the repayment date of 31 March 2013.Commenting on the group's trading outlook chairman Rodney Baker-Bates said, "Assura is a more focused, leaner and financially stronger business capable of paying dividends and well positioned for further growth."Baker-Bates said he will retire once a suitable successor has been found.CJ