Ashley House H1 revenue declines in challenging conditions

10th Dec 2013 11:19

A backdrop of challenging market conditions in the health sector hit revenue at health and community care property firm Ashley House in the half-year to October 31st, its results showed Tuesday. The top line figure declined from £7.23m to £5.54m year-on-year, as the company underwent a period of transition. Pre-tax losses widened from £0.47m to £0.79m year-on-year, with basic losses per share totalling 1.23p (2012: loss of 0.81p). The group said it was focused on diversifying its range of activities, and said that this, together with tight management of overheads, is expected to lead to growth in the mid-term. Chairman Christopher Lyons said: "The board is pleased that we have started to build momentum in our new business areas and expects these schemes to further progress through the pipeline to enable the company to meet its market expectations. This will support the continued recovery of the company in the medium-term." The group expects to meet its profit expectations for the year as new Extra Care schemes are budgeted to reach financial close before its year-end. "Three scheme applications are already with planning authorities and a further three schemes are in advanced preparation for planning submission," the company explained. "These schemes have a value approaching £50m with the high margin pre-construction revenue being recognised at financial close. At this time we are focussed on gaining planning approval and completing agreements to lease on these schemes and providing around two thirds of these are successful then our numbers will be secure for the year." The group's net debt was reduced by £1m over a year, with the half-year figure totalling £1.2m. NR