What Ashley House does
• 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"
- Modular business continues to grow
- Balance sheet stabilises
- Strong demand for healthcare premises