30 Mar 2020 13:59
30 March 2020
Ashley House plc
Administration of F1 Modular and General Update
Ashley House plc ("Ashley House" or the "Company") the health and housing property partner today provides the market with a further update.
F1 Modular Limited
On 6 March, the Company advised that F1 Modular Limited ("F1M") the Company's 76% subsidiary had filed a Notice of the Intention to Appoint an Administrator. The Company now advises that F1M, having carefully considered its financial position, has appointed two partners from RSM Restructuring Advisory LLP ("RSM") as Administrator. RSM is continuing to pursue an accelerated sale process to find a buyer for the business. Should a sale process not be completed the F1M business would be shut down.
Trading Update
As advised in the Update dated 6 March, the Company continues to urgently pursue legal remedies to recover long overdue receivables in excess of £1m. The Board is pleased that agreement has been reached with one of these parties, with the corresponding payment expected in the near future.
As advised in same Update, the Company continues to seek the funding required both to meet its ongoing working capital commitments and to support its affordable housing strategy. Discussions continue with potential equity investors, although difficulties and uncertainty caused by the Covid-19 pandemic is inevitably causing delay both to the potential equity raise and to trading in general. Accordingly, the Company is also seeking support from its bankers under the Coronavirus Business Interruption Loan Scheme. If ultimately unsuccessful or not achieved in timely fashion and in the absence of other sources of funding, the Company will not be able to continue to trade.
Board Composition
In light of the above, the Company continues to implement cost cutting measures wherever possible. As part of this, two of the Non-executive directors, Christopher Lyons (Chairman) and Andrew Willetts, whilst remaining supportive of the Company, have agreed to step down from the Board with immediate effect. Until such time as trading in its shares resumes, Ashley House will operate with the three existing Executive directors and one Non-executive director, Adrian Wright, to ensure appropriate governance. The remaining Directors thank Christopher and Andrew for all their efforts in the last years.
Share Trading
Ashley House's shares on AIM remain suspended pending further clarification. The Company confirms that trading in Ashley House shares on NEX was withdrawn from 26 March.
Year End Accounts
On 14 November 2019, the Company advised that the report and accounts for the 18 month period from 1 May 2018 to 31 October 2019 would be released by the end of March 2020. In line with other companies in the wake of the Covid-19 crisis, Ashley House has requested from Companies House a three month extension such that the report and accounts will be filed by 31 July 2020.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Enquiries:
Ashley House plc 01628 600 340
Antony Walters
Jonathan Holmes
James Hathaway
WH Ireland 0207 220 1666
(Nominated Adviser and Broker)
Adrian Hadden
James Sinclair-Ford
Darshan Patel