1st May 2015 07:50
LONDON (Alliance News) - Health and social care property partner Ashley House PLC on Friday said it will miss market expectations for the 2015 financial year due to delays in the completion of the sale of extra care schemes to AH Supported Living Ltd.
Ashley House is in the process of selling the majority of its extra care schemes to AH Supported Living, an investment vehicle backed by funding from M&G Investment Management Ltd, the asset management arm of Prudential PLC.
At present, the entire equity of the AH Supported Living business is owned by Ashley House and, until its stake in the vehicle drops below 50%, it has to consolidate the results of the business into its financial results, meaning profits can only be recognised upon completion of construction under its accounting methods.
As a result, no profit will be recognised on the extra care schemes contracted to Ashley House in the year to the end of April, meaning its earnings before interest, taxation, depreciation and amortisation will miss market expectations.
Ashley House will publish its full-year results at the end of July.
Shares in Ashley House were untraded on Friday morning, having last traded at 3.5 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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