6th Oct 2015 11:59
LONDON (Alliance News) - Health and community care property company Ashley House PLC on Tuesday said its pretax loss widened significantly due to impairment charges in the year to the end of April, as revenue came in broadly flat, and it said it has signed a GBP1.5 million loan with a company owned by a non-executive director.
Ashley House said its pretax loss for the year to the end of April was GBP11.9 million, compared to a GBP4.7 million loss a year earlier. The loss was caused by the company booking a GBP7.6 million impairment charge in the year due a writedown on its NHS Local Improvement Finance Trust joint venture investments. It is in talks to sell its investments in the LIFT ventures, but the discussions it entered into in July have yet to complete.
The company flagged the large loss last week, when it said it has signed a funding deal with Funding Affordable Homes for the Harwich and Walton extra care properties that Ashley House is working on.
Revenue was broadly flat in the year at GBP8.4 million, as Ashley House was unable to recognise value generated in its extra care pipeline in the financial year due to delays in confirming its pipeline.
The group said it has made good progress on its extra care schemes and said its flagship schemes at Harwich and Walton are on track and should reach financial close in the current financial year. Its Health business has continued to face some slowness, though it has seen some signs of recovery, albeit at a weaker level than before.
In addition to the results, Ashley House also on Tuesday announced it has secured a GBP1.5 million loan to back the development of its current projects. The loan has been provided by a privately-owned company, Yorkshire Wildlife Park Ltd, which was co-founded and which is co-owned by Stephen Minion, Ashley House's non-executive deputy chairman.
Shares in Ashley House were up 3.3% to 9.94 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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