7th May 2014 12:53
LONDON (Alliance News) - Health and community care property partner Ashley House PLC Wednesday said it has made progress on all six of its extra-care schemes, but the progress has not been enough to enable them to contribute profit for the year to April 30.
Last month, shares in Ashley House plunged after it said it was not likely to make a profit in the financial year ending April 30. It said in order to reach market expectations for profit for the year, it would need to achieve planning and exchange legal contracts on four out of six of its extra-care schemes for the elderly.
At the time Ashley House said this was unlikely to be achieved, and it confirmed Wednesday that there hasn't been enough progress to recognise any of the schemes in its profit for the recently completed year.
"We remain confident that all six schemes will close in the current financial year, and therefore that under the current funding model the profits of these schemes will benefit our 2015 results," the company said.
All costs associated with the schemes to date have been fully expensed, Ashley House said.
Financially, the company said it reduced net debt to GBP1.6 million during the year from GBP2.7 million in April 2013.
"Despite the fact that the delivery of the extra-care pipeline is taking longer and is slightly more complex than anticipated, the board is confident that the strategic decision to move into this new and growing market was the correct one," Chief Executive Jonathan Holmes said in a statement.
"We have developed our proposition with real schemes, and this will enable the business to return to profitability with the prospect of real and sustainable growth," he added.
The stock was trading at 10.95 pence Wednesday afternoon, down 0.05 pence or 0.5%.
By Anthony Tshibangu; [email protected];
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