Ashley House bombs on profit warning

1st Apr 2014 07:56

Care home property investor Ashley House has warned that it was likely to make a loss in the year to April as it had not been able to tie down new tenants and purchasers quickly enough.The company said its level of planning consents remained on target but, while it was having "very positive discussions" and remained confident that all six of its schemes will successfully close soon, it was no longer confident of doing so before the year-end.After recent discussions with some significant shareholders, the board said it preferred "to take the necessary time to achieve strong commercial agreements with the right structure rather than press for completion at the expense of longer term shareholder value".In a statement the board stated it was "very positive about the value being created in the extra care market", having in recent months opened discussions with a number of institutional funders looking to provide long-term capital for the company's schemes."This has led to receipt of indicative project funding proposals which the board is now exploring. It is possible that the delay in closing some of these schemes may allow some of them to be funded this way which could enhance value."Separately, Ashley House confirmed it has agreed to draw down a further £1.5m development finance from a facility managed by Rockpool Investments in support of its development strategy.Shares in ASH were down 23.7% to 12.5p at 08:13 on Tuesday.OH