Ashley House PLC Trading Update and Directorate Change (9474L)
May 01 2015 - 2:00AM
UK Regulatory
TIDMASH
RNS Number : 9474L
Ashley House PLC
01 May 2015
1 May 2015
Ashley House plc
Trading Update and Directorate Change
Ashley House plc ("Ashley House" or the "Company") the health
and community care property partner advises of a Directorate change
and provides a trading update following its year end.
Directorate Change
Richard Darch, Non-executive Director, retires from the Board
today due to his increasing executive commitments with Capita.
Richard joined the Board as an Executive Director in March 2013
becoming a Non-executive Director in August 2014. Christopher
Lyons, Chairman of Ashley House commented "Richard has provided the
Company with invaluable work, advice and support during his time as
a Director and leaves with our grateful thanks for his
service."
Trading Update
Good progress has been made in the year with three schemes on
site and a further GBP22m of work under contract and part paid.
The Chairman's statement in the Interim report 2014, published
in January 2015, advised that the Company expects to sell the
majority of its Extra Care schemes to AH Supported Living Limited
("AHSL"). This is the investment vehicle which has been established
following the announcement of M&G Investment Management
Limited's ("M&G") agreement to provide long term senior debt to
AHSL of up to GBP100m to acquire and fund the Extra Care schemes
being developed by Ashley House.
At the current time, the equity of AHSL is wholly owned by
Ashley House. As previously advised until such time that the Ashley
House ownership of AHSL drops below 50% it will be consolidated
into the group financial results and consequently profits can only
be recognised upon completion of construction.
Accordingly, profits will not be recognised on the AHSL Extra
Care schemes that have been contracted to the Company in the
period. However, work in progress will grow during the construction
phases and the value created will be recognised as profits upon
completion of schemes.
As a result of this non cash timing difference, reported EBITDA
which would otherwise have been in line with market expectations
will show a substantial loss. Net debt will be better than
expected. The Company continues to make progress on the funding of
its Extra Care schemes via equity into AHSL to sit alongside the
long term senior debt from M&G as previously announced. It is
also making good progress on development finance and will update on
this with the preliminary results.
Pipeline
With schemes now starting under the Company's new model,
interest and enquiries have increased. The pipeline of work is
likely to show a healthy increase when published with the
preliminary results. The Board's focus continues to be on long term
financing for this pipeline, securing this will transform the
Company's outlook.
Preliminary Announcement
The Company intends to announce preliminary results for the year
to 30 April 2015 at the end of July.
Enquiries:
Ashley House plc 01628 600 340
Antony Walters
Jonathan Holmes
WH Ireland Ltd 0207 220 1666
(Nominated Adviser and broker to Ashley House plc)
Adrian Hadden
Mark Leonard
This information is provided by RNS
The company news service from the London Stock Exchange
END
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