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GP landlord firm increases profits by almost 50%

A company specialisting in developing primary care premises and renting them out to GP practices has boosted profits by half this year.

Announcing its interim results for the six months ended 30 June 2015, Primary Health Properties (PHP) said its pre-tax profits rose by 46.6% compared with the first six months of 2014 – from £22.1m to £32.4m.

The GP landlord said that, comparing the same two six-month periods, its rental income increased by 5.2% to £30.6m, which was based on its ‘ability to secure additional property investments’ and reduce admin costs.

The company, which describes itself as ‘the UK’s leading investor in modern primary healthcare facilities’, indicated its bright outlook was boosted by the Government’s commitment to the NHS Five Year Forward View plan of moving care into primary care and the community.

PHP chairman Alun Jones and managing director Harry Hyman said that the drive to implement these plans would ‘require the replacement of many existing old, converted residential properties with modern, multi-functionality premises’.

Their announcement said: ‘The Five Year Forward View placed list-based primary care firmly at the centre of the future of the NHS and sets out plans for more “integrated out-of-hospital services based around the needs of local populations”. In order for this to be achieved efficiently, new models of care are being developed and further modern, flexible premises, such as those provided by PHP, will be required.’

The Government announced a £1bn fund to modernise GP premises as part of last year’s Autumn Statement, £190m of which has been allocated for upgrades in 2015/16.