Interim Management Statement

RNS Number : 8317N

The MedicX Fund Limited

25 February 2009

 



For Immediate Release                                                                          25 February 2009

MedicX Fund Limited

('MedicX Fund', 'the Fund' or 'the Company')

Interim Management Statement

MedicX Fund Limited (LSE: MXF), the specialist primary care infrastructure investor in modern purpose-built primary healthcare properties in the United Kingdom, today announces its Interim Management Statement.

Financial position 

There have been no significant changes to the financial position of the Company since the full year results were announced on 8 December 2008.

Investment activity

The Fund has performed in line with expectations since 30 September 2008. To date the Company has investments and commitments amounting to £166 million across 45 properties.

The portfolio of properties is performing in line with long-term objectives and there are no material operational or financial issues to report. The Company has not undertaken any acquisitions or entered into any new forward funding agreements in the period. The Company completed the development of one property at Castlecroft in November 2008. Two further properties at Lytham and Ossett remain under construction and are due to complete later this year.  

On 29 January 2009 the Company announced that it is considering raising additional monies by way of an equity issue. The Company has considered the current market conditions within the primary care infrastructure sector, in particular the widening role of primary care and also the increasing role for the private sector, and has identified opportunities to acquire assets at attractive yields. With additional capital, the Company will be in a position to pursue these acquisition opportunities.

Proposed change to investment advisory fees 

It is proposed that, conditional on a fund raising proceeding, the basis upon which the Investment Adviser's fees are paid would change to the Company's benefit.  Under the new arrangements, the investment advisory base fee in relation to Gross Assets (excluding cash) in excess of £150 million would be cut significantly and a new performance fee introduced. The investment advisory base fee and performance fee earned in any one financial year would not exceed 1.5 per cent. of Gross Assets (excluding cash), such limit being equivalent to the current investment advisory base fee.

There would be no investment advisory base fee payable on Gross Assets of between £150 million and £300 million (excluding cash). Above this threshold of £300 million, an investment advisory base fee of 0.75 per cent. of Gross Assets (excluding cash) per annum would be payable.

The Investment Adviser could only earn a performance fee if the total return to Shareholders in terms of share price growth and cumulative dividends received ('Total Shareholder Return') exceeded 8 per cent. per annum. The Investment Adviser would be entitled to a performance fee equal to 15 per cent. of the amount by which the Total Shareholder Return exceeded an 8 per cent. per annum compound hurdle rate calculated from the issue price of the proposed fundraising, subject to a high watermark. If in any year the Total Shareholder Return fell short of 8 per cent. per annum then the deficit in Total Shareholder Return would have to be made up in subsequent years before any performance fee could be earned.

Dividends

On 12 January 2009 a dividend of 2.6p per ordinary share was paid to shareholders, making a total of 5.2p per ordinary share for the year.  In the absence of unforeseen circumstances, the Company will pay in July 2009 an interim dividend of 2.665 pence per ordinary share. 

David Staples
Chairman

-Ends-

For further information please contact:

MedicX Fund                                                            [phone]

David Staples, Chairman

MedicX Group                                                          [phone]

Keith Maddin, Chairman

Mike Adams, Managing Director

Buchanan Communications                                          [phone]

Charles Ryland /

Mary-Jane Johnson

 

END

 

 

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