Interim Results

    RNS Number : 5170Z
  Global Health Partner PLC
  21 July 2008
   

    INTERIM FINANCIAL REPORT 

    Six months ended 30 JUNE 2008

    Global Health Partner PLC ("GHP")



    *     Revenue for the period increased by 58 % to £16.1 million (six months to June 2007 - £10.2 million). At constant exchange rates
the increase is 40%.

    *     Operating profit before central costs for the period increased by 100 % to £2.2 million (six months to June 2007 - £1.1 million).

    *     Loss after tax amounted to £(0.2) million (six months to June 2007 - £(0.4) million).

    *     Loss per share (basic and diluted) attributable to shareholder's equity was (1.1) pence/share (six months to June 2007 (1.0)
pence/share).

    *     Acquisition of Oradent (Specialistkliniken fDentala Implantat) greatly increases dental implants service line revenues and
profitability and enhances GHP's standing in this clinical area.

    *     On 7 July, 2008 the Board of GHP, following a strategic review, announced that it would unanimously recommend to shareholders that
the Company be de-listed from AIM and to offer existing GHP PLC shareholders new shares by means of a one for one share offer through a
scheme of arrangement under part 26 of the Companies Act 2006 in a Swedish entity to be listed on the OMX Nordic Exchange, Stockholm. The
Scheme document will be posted to shareholders on 1 August, 2008. These documents will require shareholders' to register their votes on the
proposal by 22 August 2008. A Court Meeting and Extraordinary General Meeting will be held in respect of this matter on 25 August, 2008. 

    Post balance sheet events:

    *     On 16 July 2008 GHP announced that it had agreed to issue 266,355 ordinary shares at 130 pence each to certain clinicians in
connection with a recent internal reorganisation. The GHP PLC shares were offered in exchange for their GMC (OrthoCenter Gothenburg) shares
originally acquired by them in connection with GHP's acquisition on 23 April 2007 of IFK-kliniken (Leif Swd Ortopedi AB). GHP's issued share
capital has increased to 56,145,488 shares.

      Global Health Partner PLC announces interim results for the period 1 January to 30 June 2008

    Global Health Partner plc (London AIM: GHP) (the "Company" or "GHP"), the provider of specialist clinical healthcare services, reports
its (unaudited) interim results for the six month period ended 30 June 2008 (comparative six months ended 30 June 2007). 

    In respect of the group as a whole, the financial key performance indicators are (for the period):

                                    Six             Six months       Full year
                                    months to 30    to 30            to 31 Dec
                                    June            June  2007       2007
                                    2008
 Revenue from operations, £m        16.1            10.2             20.5
 Operating (loss) profit, £m        0.3             (0.4)            (1.2)
 Operating profit before central    2.2             1.1              1.7
 costs, £m
 Operating profit before central    14%             11%              8%
 costs as a percentage of revenue
 Profit (loss) before taxation, £m  0.0             (0.4)            (1.2)
 Borrowings as a percentage of      26%             26%              26%
 total assets

    Revenue from operations for the period totalled £16.1million (2007 - £10.2million) an increase of 58% which derives both from improved
performance of existing clinics and the addition of newly acquired and start-up clinics. At constant exchange rates the increase is 40% with
SEK stronger at SEK 12.09:£1 in the period (SEK 13.67: £1).

    An operating profit for the period of £0.3 million (2007- loss of £0.4million) is recorded for the first time in a six month period
since our incorporation on 16 August 2006, reflecting both improved profitability and the operating leverage inherent within the GHP
business model as the number of service line clinics expands. It is stated after one-off costs of £(0.2) million for the investigation and
preparation for a change of listing from AIM to OMX Nordic Exchange, Stockholm. The total cash outflow due to this reorganisation is
expected to range between £0.8 to £1.0 million excluding VAT. The operating profit is also stated after central costs of £(1.7) million
(2007 - £1.5million) which relate to those costs incurred in maintaining the Group central management team. This team oversees the current
business and is responsible for business development activity to lead growth. GHP estimates that approximately two-thirds of the central
costs are incurred to develop new business within the chosen service line as well as to analyse and pursue other healthcare opportunities for future possible investments. The GHP business is subject to rather
significant seasonal changes, where the second half year is typically weaker than the first as most clinics are closed during July and part
of August. GHP is also facing significant project costs in the coming periods, both from the change of listing from AIM to OMX and, more
importantly, from business development projects, which in their start up phases could have significant effects on the overall financial
performance.

    Finance income of £0.4 million (2007 - £0.4million), mainly interest on cash deposits, is offset by finance expense of £0.6million,
(2007 - £0.4million), principally arising on external acquisition financing. Together with a share of loss of associated companies of £(0.1)
million (2007 - nil) this resulted in an overall result before taxation of £0.0 million (2007 - loss of £0.4million). Loss per share
attributable to equity shareholders was (1.1) pence (2007 - loss of 1.0 pence).

    As at 30 June 2008, the Group had consolidated total assets of £64.6 million (30 June 2007: £53.2 million, consolidated net assets of
£39.5 million (30 June 2007: £35.2 million), including £34.0 million of goodwill (30 June 2007: £24.5 million) derived from the Group's
acquisitions of its healthcare service operations and a corporate management company. 

    Total cash balances were £14.6 million (30 June 2007: £22.0 million) and external acquisition finance borrowings, principally
established against the cash flows within the operations, were £16.7 million (30 June 2007: 13.6 million), including £2.4 million (2007: 2.2
million) of convertible debt. 


      CEO Per Btelson said:

    "In our first two years we have expanded significantly in Sweden and we still see very good growth opportunities in Sweden and
Scandinavia. In other more distant markets our service line expertise provides further possibilities. We have moved ahead strongly in Dental
services in this period with the acquisition of Specialistkliniken fDentala Implantat in April. With the excellent growth opportunities in
obesity we have strengthened our resources in this service line. Our operations and senior management team are based in Sweden and our
future prospects are tied to GHP's business performance in Scandinavia; it is very natural for GHP now to seek capital market backing from
our home market investors." 


    Performance Review

    We have made important steps forward in each of our four established clinical areas in Scandinavia. In general, the performance of the
individual clinics has been satisfactory. The core of our revenues and profitability continues to be derived from our Spine service line
with Spine Center Gothenburg, now well established in the former orthopaedic premises at Hogsbo, contributing strongly alongside Stockholm
Spine Center in this period. 

    We have also made a major step forward in Dental Services, where the significant acquisition of Oradent (Specialistkliniken fDentala
Implantat) in Stockholm has both driven revenues and profits in this service line in its first three months of operations and added
significant research capability to the service line. While it is early days in its integration plan all signs so far at  Specialistkliniken
fDentala Implantat are very positive. The clinic has contributed strongly since its acquisition on April 1, 2008.  

    Elsewhere within the service lines we are pleased with the development of Stockholms Specialistvard in Orthopaedics but have experienced
lower patient volumes in OrthoCenter Gothenburg. Our Obesity service line has seen Vita Bariatric Clinic perform well and also the emergence
of an encouragingly wide number of opportunities both in Sweden and internationally in this important area for GHP. During the period a
first contract for obesity surgery in the region of Skane has been won with surgical procedures scheduled for a September start. 

    Overall we are pleased at the development of the GHP business model achieved to date, we have now established 11 operating facilities in
our first two years and remain focussed on delivering significant growth during 2008 and beyond. Alongside the established clinics we are
also seeing our start up facilities begin to bear fruit and believe this factor, combined with organic growth of our existing clinics, will
drive GHP's future growth strongly. 

    Service Line highlights

    Spine

    Revenues for the period at £7.7 million (2007 - £4.4 million) and operating profit of £1,6 million (2007 - £0.6 million) for the segment
have increased strongly, primarily as a result of the inclusion of a strong full half year contribution at Spine Center Gothenburg. The
comparative period contained only the first month of performance following its 1 June 2007 launch.

    Stockholm Spine Center (SSC), our largest clinic and our first acquisition, has also performed well in the period with high surgery
volumes in this half. The recently renovated third operating theatre has contributed to increased capacity. We have extended the key
contracts for surgery and rehabilitation with Stockholm County Council until 31 December 2009 with an extra care contract being awarded
during the period. We have also been able to cut waiting times for operations for public patients as a result of focused efforts in this
area. However, the Norwegian associate clinic, Spine Center Bergen continued to suffer from low prices during the period and we have
moderate expectations for the rest of 2008

    Spine Center Gothenburg, now firmly established at Hogsbo, continued to perform well and referral volumes increased. A full six month
period in 2008 versus one month in 2007 has naturally led to a significantly increased contribution to the service line revenues and
profitability but it has also been achieved at volume levels and margins that reflect its staff's continued hard work and operating
efficiency. 

      Dental

    Revenues for the period at £2.8 million (2007 - £1.5 million) and operating profit £0.4 million (2007 - £0.4 million) for the segment
have benefited from a three month contribution from Specialistkliniken fDentala Implantat. However, due primarily to lower surgery volumes
with patients waiting for the changes to reimbursement regulations, the specialist dental implants operations at Sophiahemmet and Srkliniken
(NDIC) have experienced reduced profitability versus the comparative period of 2007. The new reimbursement rules coming into effect in July
should imply a stronger demand in future periods, however the timing of when that feeds through into second half results is somewhat
uncertain..

    The start-up of the Leeds clinic in the UK has been slower than expected, while Specialistkliniken fImplantat och Kkirurgi i Norrkping,
acquired in the second half of 2007, performed satisfactorily in its first full half year.

    During the period, GHP completed the acquisition of Specialistkliniken fDentala Implantat, which takes GHP to a market leading position
in specialist dentistry in Sweden. The clinic itself is the largest private clinic for specialised oral rehabilitation in Sweden and the
only clinic licensed by the National Swedish Board of Health and Welfare to educate and graduate specialists in Prosthetic Dentistry. Adding
this clinic to our existing network reinforces our professional brand and also increases our attraction when approaching new partners in
this clinical area. 

    Orthopaedic

    Revenues for the period at £4.3 million (2007 - £3.7 million) and operating profit £0.2 million (2007 - loss £0.1 million) for the
segment have both moved ahead, sustained by good performance at Stockholm Specialistvd (SSV.)

    OrthoCenter Gothenburg (created by a legal merger between the IFK and GMC clinics) opened its new clinic in Annedal during the period.
These premises will provide a lower cost, fully equipped, top quality surgical environment for the surgeons. OrthoCenter Gothenburg is
rebuilding volumes following its move to new premises

    The SSV clinic has experienced strong demand from the Karolinska Hospital and is operating profitably in a competitive marketplace. 

    Obesity

    Revenues for the period at £1,2 million (2007 - £0.6 million) have benefited from a full period of operations at the Vita Bariatric
Clinic acquired in February 2007. The operating result of £0.0 million (2007 - profit £0.2 million) arises from significant development
costs for the segment. The Vita Bariatric Clinic at Sophiahemmet has performed well. During the period the clinic moved location within the
Sophiahemmet hospital premises with minimal disruption to productivity in order to facilitate an expansion of the business in future months.


    The award of the contract for obesity surgery within the Skane region represents an important validation of the service line's surgical
skills and operating capability. The initial contract award to Vita Bariatric Clinic in Ske will see surgeries undertaken at Kristianstad
hospital from the fourth quarter of 2008. Outpatient visits have also started at our clinic at Lund during this period. 

    We have expanded our operating resource deployed in the development of the obesity service line as we see an underserved area of
clinical need where GHP's surgeons and operating protocol can make a difference in a market that we believe is very likely to grow strongly.
Towards the end of the period GHP made plans to explore a number of international opportunities which on validation may lead to expansion of
GHP's business model into new markets. These will be considered under market entry criteria which combine high levels of obesity and
morbidity within the population and a need for enhanced surgical operating protocols and capabilities with acceptable market and regulatory
structures for international privately owned operations and will be conducted under an operating structure that does not dilute GHP's
central resource capabilities.  

      GHP's Future Plans

    Given its successful expansion in relatively favourable market conditions in Sweden and Scandinavia in its short history of almost two
years to date, GHP will continue to focus its development activity within the selected clinical areas of Spine, Dental, Orthopaedic and
Obesity in these geographic markets. The chosen service lines offer real growth opportunities and good margins which all benefit from
surgical excellence and a standardised service model. Opportunities to internationalise the model beyond these home markets will undoubtedly
arise in the coming months and years, but will not divert GHP from its principal focus for the upcoming periods of developing its network of
specialist, high performance clinics in Sweden and Scandinavia. In these markets we continue to see excellent opportunity for growth and
sustainable margins, which we plan to deliver while at the same time enhancing our established reputation for surgical excellence and
operating efficiency.

    As announced on 7 July, 2008 the Board of GHP has decided to recommend to GHP's existing shareholders that we transfer our listing from
the AIM market to the OMX Nordic Exchange, Stockholm. GHP has been able to establish itself and trade successfully on the AIM Market of the
London Stock Exchange since its initial flotation and placing on 16 August, 2006, growing strongly from its initial market capitalisation of
£23.1m and its 60 pence per share initial market price. It has also been able to support its expansion strategy with finance raised in a
subsequent placing on the AIM market with Swedish and international investors. However, as the Group has developed its operations
principally in service lines within Sweden and Scandinavia, increasing support for the Group has been shown from Scandinavian investors with
recently Investor Growth Capital taking a significant 15.6% stake in the business at the end of 2007.  

    Given the development of the business so far, with the majority of GHP's business operations now established and operating successfully
in Sweden, with the senior management team based in Gothenburg and with regard to the future development strategy focusing on the potential
for growth in its local markets, the Board, following careful consideration, believes that a transfer to the OMX Nordic Exchange, Stockholm
now makes strong strategic sense. It expects that this will align best the operating and capital markets so that the perceived appetite for
GHP's shares among local Swedish institutions and retail investors, given its local operations, may result in increased liquidity in the
future. 

    The Board of GHP unanimously recommends this course of action to shareholders. We believe it is in the best interests of existing
shareholders and hope that shareholders will also vote in favour of the proposal at the Extraordinary General Meeting to be held to consider
this matter on August 25, 2008. If approved, it is to be effected by a Scheme of Arrangement under part 26 of the Companies Act 2006 for
completion during September 2008 with a listing on OMX Nordic Exchange, Stockholm expected  to occur shortly thereafter.. 


    Post-balance sheet events
    On 7 July, 2008 the Board of GHP, following a strategic review, announced that it would unanimously recommend to shareholders that the
Company be de-listed from AIM and to offer existing GHP PLC shareholders new shares by means of a one for one share offer through a scheme
of arrangement under part 26 of the Companies Act 2006 in a Swedish entity to be listed on the OMX Nordic Exchange, Stockholm. The Scheme
document will be posted to shareholders on 1 August, 2008. These documents will require shareholders' to register their votes on the
proposal by 22 August 2008. A Court Meeting and Extraordinary General Meeting will be held in respect of this matter on 25 August, 2008. The
total cash outflow due to this reorganisation is expected to range between £0.8 to 1.0 million excluding VAT.

    On 16 July 2008 GHP announced that it had agreed to issue 266,355 ordinary shares at 130 pence each to certain clinicians in connection
with a recent internal reorganisation. The GHP PLC shares were offered in exchange for their GMC (OrthoCenter Gothenburg) shares originally
acquired by them in connection with GHP's acquisition on 23 April 2007 of IFK-kliniken (Leif Swd Ortopedi AB). GHP's issued share capital
has increased to 56,145,488 shares.

    Gborg 21 July, 2008

    Global Health Partner PLC

    Per Belson
    CEO

      Summarised Consolidated Profit and Loss Accounts (Unaudited)
    For the period 1 January to 30 June 2008 

    
                                 Jan-June2008£000  Jan-June2007£000  Full year2007£000
                                                                                      
 Revenue and other operating                                                          
 income
 Revenue                                   16,076            10,181             20,458
 Other operating income                       560               703                952
                                           16,636            10,884             21,410
                                                                                      
 Operating expenses                      (16,307)          (11,290)           (22,658)
                                                                                      
 Operating profit (loss)                      329             (406)            (1,248)
                                                                                      
 Share of net profit (loss) of              (104)                 3              (198)
 associates
 Financial income                             369               421              1,027
 Financial expenses                         (573)             (409)              (745)
                                            (308)                15                 84
                                                                                      
 Profit (loss) before tax                      21             (391)            (1,164)
 Taxation                                   (187)              (42)                219
 Net profit (loss)                          (166)             (433)              (945)
                                                                                      
 Attributable to                                                                      
 Shareholder*s equity                       (590)             (484)            (1,136)
 Minority interests                           424                51                191
                                            (166)             (433)              (945)
                                                                                      
 (Loss) per ordinary share,                                                           
 pence
 Basic                                      (1.1)             (1.0)              (2.2)
 Diluted                                    (1.1)             (1.0)              (2.2)
                                                                                      
 Average number of shares              55,020,374        50,667,641         52,637,288
 Average number of shares after        58,484,145        54,131,412         56,101,059
 full dilution
                                                                                      
 Average number of employees                  216               184                190


     Summarised Consolidated Balance Sheets (Unaudited)
    At 30 June 2008 

                                  30 June  30 June  31 Dec
                                     2008     2007    2007
                                     £000     £000    £000

 Assets  
 Non-current assets
 Intangible assets                 34,029   24,730  27,953
 Other non-current assets           8,680    1,803   4,665
 Total non-current assets          42,709   26,533  32,618

 Current assets
 Trade and other receivables        7,254    4,635   5,049
 Financial assets                       -       30       -
 Cash and cash equivalents         14,596   22,003  17,973
 Total current assets              21,850   26,668  23,022

 Total assets                      64,559   53,201  55,640

 Liabilities
 Current liabilities
 Short-term borrowings              4,331    1,232   1,321
 Other current liabilities          7,308    3,640   3,423
 Total current liabilities         11,639    4,872   4,744

 Non-current liabilities
 Long-term borrowings              12,428   12,379  12,984
 Other non-current liabilities        984      757   1,449
 Total non-current liabilities     13,412   13,136  14,433

 Total liabilities                 25,051   18,008  19,177

 Net assets                        39,508   35,193  36,463

 Total shareholder's equity        37,704   34,228  35,048
 Minority interests                 1,804      965   1,415

 Total equity                      39,508   35,193  36,463















    Summarised Statement of Changes in Consolidated Shareholders' Equity (Unaudited)  

                                           30 June  30 June   31 Dec
                                              2008     2007     2007
                                              £000     £000     £000

 Opening balance                            35,048   22,523   22,523
 Issue of ordinary shares (less expenses)    1,761   12,594   12,698
 Net (loss)                                  (590)    (484)  (1,136)
 Foreign exchange and other movements        1,485    (405)      963

 Closing balance                            37,704   34,228   35,048


    Summarised Statements of Cash Flows (Unaudited)
    For the period 1 January to 30 June 2008

                                                   Jan-Jun  Jan-Jun  Full year
                                                      2008     2007       2007
                                                      £000     £000       £000

 Operating activities
 Operating profit (loss)                               329    (406)    (1,248)
 Depreciation and amortization                         363      404        918
 Other operating activities - net                    (603)    (661)      (317)
 Change in working capital - net                       309      239      (661)

 Net cash flow (used in) from operating                398    (424)    (1,308)
 activities

 Investing activities
 Acquisition of subsidiaries*                      (3,176)  (1,638)    (1,095)
 Other investing activities                        (1,726)    (130)    (3,276)

 Net cash flow (used in) investing activities      (4,902)  (1,768)    (4,371)

 Financing activities
 Movement in borrowings - net                          874    (506)    (1,247)
 Issue of ordinary share capital (net of                 -   12,166     12,165
 expenses)

 Net cash flow from financing activities               874   11,660     10,918

 Effects of exchange rate changes                      253     (79)        120

 Net increase (decrease) in cash and cash          (3,377)    9,389      5,359
 equivalents
 Cash and cash equivalents at the beginning of      17,973   12,614     12,614
 the period

 Cash and cash equivalents at the end of the        14,596   22,003     17,973
 period
    *note 9


    Notes to the Summarised Consolidated Financial Information for the period ended 30 June 2008 (unaudited) 
    1. General information

    Global Health Partner plc (the "Company") was incorporated in the United Kingdom (England and Wales) in June 2006. The Company and all
of its subsidiaries are together referred to herein as the "Group". The Company's registered office is: 7 Cowley Street, London SW1P 3NB.

    The consolidated financial information has been prepared in accordance with International Financial Reporting Standards as adopted by
the European Union, including interpretations from the International Financial Reporting Interpretations Committee. The preparation of
consolidated financial information in conformity with generally accepted accounting principles requires the use of estimates and assumptions
that affect the reported amounts of asset and liabilities at the date of the consolidated financial information and the reported amounts of
revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or
actions, actual results ultimately may differ from those estimates. 

    The unaudited consolidated financial information does not constitute full financial statements within the meaning of Section 240 of the
UK Companies Act 2005.

    Unless otherwise stated, all amounts in the consolidated financial information are denominated in thousands of UK pounds sterling.


    2. Operating profit

    Operating profit is stated after corporate expenses of £1.9 million which include those costs incurred in maintaining a group central
management team during the period. This team oversees the current business and manages the corporate development and expansion of the GHP
Group according to its stated strategy. GHP estimates that approximately two-thirds of the central costs are incurred to develop new
business within the chosen service lines as well as to analyse and pursue other healthcare opportunities for future possible investments. In
central costs for the period are also included costs (£0.2) million for the investigation and preparation for a change of listing from AIM
to OMX Nordic Exchange, Stockholm.

    3.  (Loss) per ordinary share

    Basic (loss) per ordinary share has been calculated on the (loss) after tax attributable to equity shareholders of £(1.1) million
divided by the weighted average number of ordinary shares in issue during the period of 55,020,374.

    The diluted (loss) per ordinary share takes account of the impact of issuance of shares, if the convertible debentures were to have been
converted and in issue during the entire period.    

    The impact of the issuance of ordinary share in future periods which solely arises from the convertible bond is anti-dilutive in nature.
The adjustment to earnings in the period (six month 2008), for the effective interest on the convertible bond,was £(0,1) million.  4. 
Segment information

    At 30 June 2008, the directors have determined that the Group is currently engaged in four primary reporting business segments each
providing specialized, integrated healthcare services: 

    *     spine 
    *     dental 
    *     orthopaedic; and
    *     obesity 

    The segment information is provided after allocation of costs for service line specific personnel and projects, but before any
allocation of costs for group central overhead functions as well as business development costs that relates to the group as a whole. As the
Service Lines develop, a larger allocation to the respective segments may occur.



    January-June 2008

                          Spine  Dental  Orthopaedic  Obesity  Corporate   Total
                           £000    £000         £000     £000       £000    £000
 Revenue                  7,715   2,779        4,346    1,236          -  16,076
 Operating profit (loss)  1,593     434          206     (17)    (1,887)     329


    January-June 2007

                          Spine  Dental  Orthopaedic  Obesity  Corporate   Total
                           £000    £000         £000     £000       £000    £000
 Revenue                  4,368   1,509        3,727      552         25  10,181
 Operating profit (loss)    620     376         (92)      151    (1,461)   (406)


    Full year 2007

                          Spine  Dental  Orthopaedic  Obesity  Corporate    Total
                           £000    £000         £000     £000       £000     £000
 Revenue                  9,830   2,524        6,903    1,201          -   20,458
 Operating profit (loss)  1,194     455        (109)      187    (2,975)  (1,248)


    5. Share capital

    As 30 June 2008, there were 55,879,133 allotted, called up and fully paid ordinary shares of 50p each in issue (30 June 2007 -
54,345,492). 1,444,641 ordinary shares were issued during the period as part of the total payment for Specialistkliniken fDentala
Implantat.

    On 16 July 2008 GHP announced that it had agreed to issue 266,355 ordinary shares at 130 pence each to certain clinicians in connection
with the acquisition on 23 April 2007 of IFK-kliniken (Leif Swd Ortopedi AB). GHP issued share capital was increased to 56,145,488 shares.


    6. Short term and long term borrowings

    At 30 June 2008, the Company had secured borrowings of £16.7 m, including external bank loans and loans to minority shareholders of
subsidiary undertakings. Of this amount £4.3 is classified as short term , including convertible debt of £2.4 m in respect of an acquisition
and £12.4 m is long term.


    7. Financial income and expenses

                                        Jan-Jun  Jan-Jun  Full year
                                           2008     2007       2007
                                           £000     £000       £000

 Financial income:
 Bank interest receivable                   360      421      1,009
 Foreign exchange gain                        -        -         15
 Other financial income                       9        -          3
                                            369      421      1,027

 Financial expenses:
 Bank interest payable                      304      241        493
 Interest on minority shareholder debt       46       32         64
 Interest on convertible bond                92       85        170
 Interest on financial leases                 4        3          7
 Foreign exchange loss                        -       48          -
 Other financial expenses                   127                  11
                                           573       409        745


    8. Taxation    

    Taxation principally arises on the operations in Sweden. Deferred tax assets have been recognized in 
    respect of certain corporate and other costs arising in Sweden and the UK. 


    9. Acquisition of subsidiaries

    During the period one major acquisition has taken place:

    On 16 April 2008, effective from 1 April 2008, the Group acquired 100 percent of Oradent AB (Specialistkliniken fDentala Implantat). The
acquisition was financed by the issuance of approximately 1,444,000 shares at 122 pence per share and approximately £3.6 million in cash.
The acquired business contributed revenues of £1.1 and net profit of £0.2 to the Group for the period from 1 April to 30 June 2008.




                                                   £000
 Purchase consideration:
 - Cash                                           3,617
 - Direct costs relating to the acquisition          58
 - Shares issued                                  1,761
 - Deferred consideration                           464
 Total purchase consideration                     5,900
 Fair value of net assets acquired (see below)  (1,811)
 Goodwill                                         4,089

    The goodwill is attributable to the future earning capacity of the acquired business as well as the local management team's ability to
further develop the business.

    The fair value of the assets and liabilities from the acquisition are as follows:

                                                    £000
 Cash and cash equivalents                           499
 Buildings                                         2,049
 Property, plant and equipment                       209
 Other current assets                                574
 Other current liabilities                         (294)
 Deferred taxation                                 (586)
 Borrowings                                        (640)
 Net assets acquired                               1,811

 Purchase consideration settled in cash            3,675
 Cash and cash equivalents of subsidiary acquired  (499)
 Cash outflow on acquisition                       3,176



    For further information, please contact:

    Per Belson
    [phone]



    Global Health Partner PLC| 17 Cavendish Square | London W1G 0PH
    Tel: [phone] | Fax: [phone] 
    Corporate ID number: 5859431
    globalhealthpartner.com 
    -----------------------------------------------------------ENDS---------- -----------------------------------------



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