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Ashley House shifts focus towards modular buildings

Snapshot

  • Designs and builds health & social care accommodation
  • 76% stake in modular construction business
  • JV with Morgan Sindall now sold
Healthcare

Quick facts: Ashley House PLC

Price: 2.75 GBX

AIM:ASH
Market: AIM
Market Cap: £1.68 m
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What Ashley House does

Ashley House Plc (LON:ASH)  was originally a specialist in GP surgeries but the company is also now focused on modular buildings.

• Health – focusing on facilities for health professionals such as primary care centres, GP surgeries, and laboratories

• Modular – an off-site construction business that delivers buildings such as student accommodation, school classrooms, hotels, and retail units

The company’s modular construction arm is operated by its subsidiary F1 Modular, in which it owns a 76% stake while the remaining shares are owned by F1’s management.

How it's doing

in October, Ashley House sold its half share of Morgan Ashley Care for £2mln of which £500,000 was deferred.

One of the remaining divisions, the F1 Modular affordable housing unit, continues to grow, the housing and health properties developer said in a trading update in November.

A review of skills and resources across all levels and areas of the business is underway to reduce overheads.

Revenues in the year to April dropped to £11.9mln from £18.5mln the year before, largely reflecting the non-inclusion of revenues from Morgan Ashley this time round.

The group made a loss before tax of £2.95mln, compared to a profit of £805,000 the previous year.

Net debt at the end of April deepened to £1.8mln from £1.5mln a year earlier.

What the boss says: Christopher Lyons, chairman

"The delays experienced in closing schemes in Morgan Ashley along with the commensurate increase in the cash investment required, placed a significant burden on the company and despite exploring other avenues, it ultimately proved unsustainable.

“This led to the disposal of the company's interest in that joint venture.

The company is now refocusing its interests in health development and housing and looks to maximise the significant potential seen in F1 Modular and particularly in the affordable housing market" 

Inflexion points

  • Modular business continues to grow
  • Balance sheet stabilises
  • Strong demand for healthcare premises

 

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