Ashley House in good health

26th Jan 2010 07:54

Care home builder Ashley House virtually doubled profits at the interim stage but cautioned that the short term outlook remains uncertain.Profit before tax in the six months to 31 October surged to £1.47m from £0.75m the year before, on revenue that advanced to £13.35m from £8.12m.‘The fundamentals of the business remain sound and in the medium term we believe that the outlook is still positive as the NHS strives to achieve greater efficiency through service rationalisation and modernisation,’ said the company’s chairman Sir William Wells.Wells acknowledged that Primary care trusts are taking a second look at their budgets and seeking to make further savings ahead of the general election, which makes the shorter term outlook cloudier for the group.The five schemes mentioned in the trading statement of November that the company hoped would kick off before Christmas are still awaiting final approval but the company has been assured by the relevant primary care trusts that these projects will enter thee build phase in the coming weeks.‘Our pipeline of schemes upon which we expect to recognise revenues in the next two years stands at £238m at the end of January. The devolvement of services from acute sector into primary and community facilities is supported by all political parties and has demonstrably improved patient care and access in many sectors,’ said Wells. The company, which did not pay an interim dividend last year, has proposed a payment of 1.0p per share this time round.