F1 Modular recently delivered two school classroom developments for the Department of Education and is currently completing a 40 apartment extra care facility in Aberdare, South Wales, a social housing scheme in Corby and the Ashley House disabled living scheme in Peterborough.
Since offloading its stake in Morgan Ashley Care Developments to its joint venture partner, Morgan Sindall Group PLC (LON:MGNS), Ashley House has refocused its efforts on pursuing opportunities in the affordable housing market and has returned to its roots of developing schemes in the health and well-being sector.
With the transfer of 12 members of staff to Morgan Sindall Investments since the disposal of Morgan Ashley, the group has taken the opportunity to perform a review of skills and resources across all levels and areas of the business, while reducing overheads in order to save money.
The company, which has announced it would change its financial year-end to 31 October, released results covering the 12 months to 30 April, which highlighted the reasons why the company abandoned the care developments sector.
Revenues 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 had deepened to £1.8mln from £1.5mln a year earlier.
"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,” explained Christopher Lyons, the chairman of Ashley House.
“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," he added.