Ashley House hit by NHS shake-up

13th May 2011 08:11

Shares in health and social care infrastructure specialist Ashley House slumped almost 16% after it issued a profit warning.Uncertainty about the future of the NHS, delays and adverse weather conditions in the third quarter is expected to impact the company's full year profitability by approximately £1.1m.The coalition government's shake-up of the NHS, which includes putting doctors in charge of the healthcare budget, has come under criticism.Ashley House said uncertainty about the NHS, in particular the abolition of key commissioning bodies known as Primary Care Trusts (PTA) has made it difficult for its clients to complete projects. As a consequence it will not receive an expected design fee in relation to one LIFT scheme and three schemes have been delayed from reaching site before the year end. The group, which designs and builds clinics, also warned that several schemes have experienced construction delays following the adverse weather conditions during the third quarter.Ashley House announced a provision of £5.1m against the possibility that some of its income would be delayed. CJ