PSPI (AIM: PSPI), the specialist real estate investment and financing company, announces its unaudited interim results for the six months ended 30 June 2015.

Highlights

A. Material transactions
· In March 2015 the Company completed the disposal of its investment in the UK healthcare sector with the sale of companies, businesses and assets at a gross sale value of approximately £34.5 million with £2.5 million deferred until 31 December 2015 to the Embrace Group. Initial net proceeds of £14.2 million were received after repayment of debt secured against the UK assets of £16.3 million, taxation and transaction costs.
· In April 2015 the Company completed a compulsory partial redemption of shares on a pro-rata basis at a price of 23.875p per share, returning approximately £16.1 million to shareholders.
· Two German care home properties were sold in January 2015 and July 2015 for gross disposal proceeds of €7.9 million (£5.6 million). Net proceeds of approximately €5.6 million were received after repayment of debt secured against one of the properties of €1.9 million (£1.3 million), interest rate swap breakage costs and transaction fees. The sale announced on 9 July 2015 completed on 1 September 2015 with the property reflected on the balance sheet as at
30 June 2015 as an asset held for sale at €5.4 million (£3.8 million).
· The Company now owns four care homes in Germany which were independently valued at 30 June 2015 at €13.8 million¹ (£9.7 million) and which generate gross rental income of €1.6 million per annum (£1.1 million). Senior debt of €4.2 million (£3.0 million) is secured against three of the retained properties.

B. Financial results

· The loss from continuing operations is reported at £2.5 million for the six months ended 30 June 2015 (2014 - loss £3.7 million) after recording fair value losses of £0.9 million on the four German care homes (2014 - £3.3 million) and net exchange losses of £1.6 million (2014 - £0.7 million).
· Administrative costs from continuing operations for the six months ended 30 June 2015 were £0.7 million which was 11% lower than in the first six months of 2014.
· The Company had cash balances of £5.8 million at 30 June 2015, £0.5 million of restricted cash and a receivable of £2.5 million due to be collected from the Embrace Group by 31 December 2015. In addition, the Company received net proceeds of approximately £3.8 million from the sale of Huttenstrasse on 1 September 2015.
· The Net Asset Value per share² at 30 June 2015 was 49.1p per share (34.6p per share at 31 December 2014 which was stated before the compulsory partial redemption of shares noted above).

C. Group Strategy
· The Company will continue to test the market for the four remaining German assets.
· The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2015.

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