(Alliance News) - Ashley House PLC said Thursday it has changed the date of its financial year-end following the sale of its 50% Morgan Ashley Care joint venture interest.
Ashley House said it has changed its accounting year-end to October 31, from June 30 with immediate effect.
At the start of the year, Ashley House had said it was to change its year-end to June 30, to "better align" its reporting period with the half year of its then joint venture, Morgan Ashley Care Developments LLP. However, Ashley House then sold its entire interest in Morgan Ashley to its joint venture partner Morgan Sindall Investments Ltd.
The company said changing the year-end to October allows the full accounts for the 18 month period to October 31 to include the company's complete share of the performance of Morgan Ashley up to the date of its sale, together with the effects of the sale itself.
As such, Ashley House released its unaudited interim results for the twelve month period to April 30, 2019. The report and accounts for the 18 month period from May 1, 2018 to October, 31 2019 will be released by the end of March 2020.
In the half year ended April 30, the company swung to a pretax loss of GBP2.9 million from a profit of GBP0.8 million on a revenue of GBP11.9 million, down 35% from GBP18.5 million in the corresponding period.
The company said revenue earned in Morgan Ashley did not contribute to group revenue as the joint venture profits and losses were reported only within share of results of joint ventures. Morgan Ashley was sold to Morgan Sindall Investments in October 2019 for GBP2 million.
Ashley House is now refocusing its activity to its key strengths as a developer of health and wellness buildings, as well as driving opportunities for its majority owned modular business, it added.
"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. 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," Chair Christopher Lyons said.
The company also reported a trading update for the period up to October 31 and said proceeds from the transaction have been deployed within key areas of focus and used to support the group's working capital requirements.
Net debt at October 31, 2019 stood at GBP1.5 million, reduced from GBP1.8 million at the end of April 2019.
Shares in Ashley House closed 8.8% lower at 2.60 pence on Thursday in London.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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