Assura Group, the GP and pharmacy services company, reported a 60 per cent jump in first-half turnover to £22.3 million pounds this morning.

The company hopes to benefit from a more cost-conscious Department of Health, leading to more competition between private and publicly-owned healthcare providers, during a recession.

After being forced to reduce its planned fundraising in October due to market turmoil, management have cut staff and members of the board will take a 15 per cent cut in salary. It is expected that Assura will make a full-year trading loss of between £4 million and £6 million this year.

Richard Burrell, chief executive of Assura, said that the company plans to sell off some of its healthcare property portfolio to keep the balance sheet healthy. It will sell 10 of a potential 80 properties in 2009, and has already begun talking to potential purchasers.

The growth in turnover has mainly been driven by new GP surgeries generating rental income, and increased revenues from wholly owned pharmacies. It plans to concentrate more on its large GP surgeries, some of which offer other services such as X rays and pharmacies, in the next couple of years.

Assura has working capital in place for at least the next 18 months.

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