ASH.L Regulatory News (ASH)

4 Dec 2007 07:02

Ashley House PLC04 December 2007 Ashley House plc 2007 Interim Results Ashley House plc ("Ashley House" or the "Company") the Primary Careinfrastructure specialist is pleased to announce today its interim results forthe six months ended 31 October 2007. Highlights include: • Profit before tax and exceptional items up 22% to £1.77m (2006: £1.45m) • Earnings per share before exceptional items steady 4.5p (2006:4.3p) • Total dividend up 15% to 2.3p (2006: 2p) • First revenues from the NHS LIFT programme delivered through the Strategic Alliance with Babcock & Brown • Successful completion of 6 projects in the period • Planning approval granted for £25m Health Park in Scarborough Commenting on the results Chairman Sir William Wells said: "The business progress provides an excellent base to capitalise on the Company'sinvolvement in NHS LIFT, Health Parks and Clinical Services which should reflectmaterially on the revenue and profit of the Company in the year to April 2009.Ashley House has a first rate team and is now well placed to deliver its truegrowth potential underpinned by the favourable market background." Enquiries:Ashley House plc Tel: 01628 600340Jonathan Holmes, Chief ExecutiveBruce Walker, Finance Director Citigate Dewe Rogerson Tel: 020 7638 9571Sarah Gestetner / Ged Brumby Numis Securities (Nominated Adviser and broker to Ashley Tel: 020 7260 1000House) David Poutney / Michael Meade / Oliver Cardigan Chairman's Statement Results The interim results for the six months to 31 October 2007 show continuedprogress maintaining the profit growth achieved over the last two years. Thepre-tax and pre-exceptionals profit has moved ahead to £1.77m (2006: £1.45m) anincrease of 22%. The net profit after tax and exceptionals was £1.24m (2006:£1.07m) some 16% ahead. The reorganisation of the NHS earlier in the year resulted in delay in PCTsapproving the funding for some new primary care schemes. As a result there hasbeen a short term reduction in revenue but the effect of the reorganisation hascontributed to a substantial pipeline of new business which should lead to asignificant increase in turnover in both 2008 and 2009. During the period, ouroverall margin has improved, due to a broader mix and increase of income fromother activities in particular design fees and asset management, despite asignificant investment in management staff to undertake the increased businessgoing forward. Earnings per share were steady at 4.5p (2006: 4.3p excludingexceptionals) on an increased number of shares following the AIM floatation andfundraising in January 2007. These are the first accounts produced under IFRS but as demonstrated incomparative figures prepared in earlier years' results reports, there is littleimpact of adopting IFRS on Ashley House plc. Full detailed notes on the adoptionof IFRS are available on the Company's website at www.ashleyhouseplc.com Dividend Due to the positive outlook for the business, the Board has decided to increasethe interim dividend to 2.3p per share (2006: 2p), an increase of 15% over theinterim dividend last year. This interim dividend will be paid on 14 January2008 to shareholders on the register as at 14 December 2007. Business Progress In addition to good progress on the Company's core business of the design anddelivery of GP surgeries for future years, the first six months of the financialyear reflects the first design fees from the NHS LIFT programme which is nowflowing as a consequence of the Strategic Alliance with Babcock & Brown. Therewill be a significant impact on both revenue and profit in the next twofinancial years from the 21 NHS LIFT schemes now being worked on. Shortly afterthe period end, two more NHS LIFT schemes with a total construction value ofapproximately. £12m achieved LIFTCo Board approval, at which point our costs areunderwritten. There are now six schemes of the 21 which have achieved thisstage. The Company's revenues from the contract to manage the portfolio owned by AHMedical Properties plc ("AHMP") continues to grow following the completion offour additional properties during the period. AHMP also completed a highlybeneficial £58.5m refinance during the period, reducing its interest cost aswell as raising a further £14m of new money securing its ability to continue toacquire new schemes under the agreement with Ashley House. However despite asignificant increase in the underlying asset value of AHMP, underpinned by arecent revaluation, this has not been reflected in the AHMP share price whichhas fallen as with most property companies at this time. As a consequence anadjustment to the value of the Ashley House's 6.8% equity stake in AHMP isreflected in these accounts. In July full planning approval was granted for the Health Park in Scarborough.This is a major scheme providing a 1,900 m2 Primary Care centre, an electivecare centre, a 93 bed care home for the elderly and 14 sheltered apartmentunits. The scheme is estimated to have a gross development value of £25m andwill be undertaken in a joint venture with a third party. Clinical Services has made good progress and is beginning to generate somerevenue from its pharmacy joint venture business and from its first JV providercontracts. Positive discussions are on-going with a number of groups of GPs whoare keen to bid for a wide range of devolved services. The Company joins themas their commercial partner to provide additional resource and managementskills. Primary Care - the Outlook As set out in our recent Trading Statement, the Board welcomed Lord Darzi'sInterim Report "Our NHS Our Future" which specifically identified the need forat least 100 more GP surgeries and 150 new 'Polyclinics' which adds to thesignificant amount of replacement and reconfiguration work which has alreadybeen earmarked for the primary care estate. Ashley House is well placed tocontribute positively to this next phase of health and social careinfrastructure investment. Government policy is to shift the emphasis of care away from the Acute Sector,(and indeed has scaled back ISTC contracts in which the Company has never beeninvolved) and to concentrate on the provision of as much care as possible in aprimary and community care setting. This shift is clearly to the benefit of theCompany. The current financial year is one of consolidation following strong growth inprevious periods, at the same time good progress has been made on profitabilityby improving margins. This provides an excellent base to capitalise on theCompany's involvement in NHS LIFT, Health Parks and Clinical Services whichshould reflect materially on the turnover and profit of the Company in the yearto April 2009. Ashley House has a first rate team and is now well placed todeliver its true growth potential underpinned by the favourable marketbackground. Sir William WellsChairmanAshley House plc 3 December 2007 Independent review report to Ashley House plc Introduction We have been instructed by Ashley House plc ("the Company") to review thefinancial information for the six months ended 31 October 2007 which comprisesthe condensed consolidated interim income statement, condensed consolidatedinterim balance sheet, condensed consolidated interim statement of changes inequity and the condensed consolidated interim cash flow statement and therelated notes 1 to 7 set out on pages 10 to 12. We have read the otherinformation contained in the interim report which comprises only the Chairman'sStatement and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. Our responsibilitiesdo not extend to any other information. This report is made solely to the Company in accordance with guidance containedin International Standard on Review Engagements (UK and Ireland) 2410, ''Reviewof Interim Financial Information Performed by the Independent Auditor of theEntity'' issued by the Auditing Practices Board for use in the United Kingdom.Our review work has been undertaken so that we might state to the Company thosematters we are required to state to them in a review report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the Company for our review work, for thisreport, or for the conclusion we have formed. Directors' responsibilities The interim report, including the financial information therein, is theresponsibility of, and has been approved by the directors. The AIM Rules of theLondon Stock Exchange require that the accounting policies and presentationapplied to the interim figures are consistent with those which will be adoptedin the annual accounts having regard to the accounting standards applicable tosuch accounts Review work performed We conducted our review in accordance with guidance contained in InternationalStandard on Review Engagements (UK and Ireland) 2410, ''Review of InterimFinancial Information Performed by the Independent Auditor of the Entity''issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of management and applying analyticalprocedures to the financial information and underlying financial data and, basedthereon, assessing whether the disclosed accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of control and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards of Auditing (UK andIreland) and therefore provides a lower level of assurance than an audit.Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 October 2007. GRANT THORNTON UK LLPREGISTERED AUDITORCHARTERED ACCOUNTANTSOXFORD 3 December 2007 Condensed consolidated interim income statement Unaudited Unaudited Unaudited 6 months to 6 months to Year to 31 October 31 October 30 April 2007 2006 2007 £000 £000 £000 Revenue 9,978 12,765 25,644Cost of sales (6,458) (9,844) (18,307) ------------- ------------- -----------Gross profit 3,520 2,921 7,337Administrative expenses (1,837) (1,440) (3,228)Depreciation, amortisation (97) (57) (112)and impairment ofnon-financial assetsProfit on sale of asset - 137 137Non recurring costs - - (1,551) ------------- ------------- -----------Operating profit 1,586 1,561 2583 Finance income 188 40 142Finance expense (15) (15) ------------- ------------- -----------Profit on ordinary 1,774 1,586 2,710activities before tax Income tax expense (532) (520) (1,325) ------------- ------------- -----------Profit for the period 1,242 1,066 1,385 ============= ============= =========== Earnings per share:Basic earnings per share 4.51p 4.75p 5.76p ======= ======= =======Diluted earnings per share 3.98p 4.36p 4.97p ======= ======= ======= Condensed consolidated interim balance sheet Unaudited Unaudited Unaudited 31 October 31 October 30 April 2007 2006 2007 £000 £000 £000ASSETSNon-current assetsProperty, plant and equipment 348 211 200Available for sale investments 1,387 - 1,850Goodwill 270 270 270 ------------- ------------- ----------- 2,005 481 2,320 ------------- ------------- -----------Current assetsTrade and other receivables 6,732 5,374 7,392Cash and cash equivalents 6,666 2,896 6,073 ------------- ------------- ----------- 13,398 8,270 13,465 ------------- ------------- -----------Total assets 15,403 8,751 15,785 ============= ============= ===========LIABILITIESCurrent liabilitiesTrade and other payables (4,379) (3,572) (4,712) ------------- ------------- ----------- (4,379) (3,572) (4,712) ------------- ------------- -----------Non-current liabilitiesDeferred tax liabilities - (13) - ------------- ------------- -----------Total non-current liabilities - (13) - ------------- ------------- -----------Total liabilities (4,379) (3,585) (4,712) ------------- ------------- -----------Net assets 11,024 5,166 11,073 ============= ============= ===========EQUITYShare capital 275 238 275Share premium account 8,040 3,250 8,040Share based payment reserve 1,421 184 1,421Retained earnings 1,288 1,494 1,337 ------------- ------------- -----------Total equity 11,024 5,166 11,073 ============= ============= =========== Condensed consolidated interim statement of changes in equity (unaudited) Share Share Premium Share based Retained capital account payment reserve earnings Total equity £000 £000 £000 £000Balance at 30 April 2006 224 2,771 165 1,326 4,486 Changes in equity for first half of 2006 Change in share based payment reserve - - 19 - 19 Profit for the period - - - 1,066 1,066 --------- --------- ----------------- ---------- -------------- Total recognised income and expense for the period - - 19 1,066 1,085 Dividends - - - (898) (898)Issue of share capital 14 479 - - 493 --------- --------- ----------------- ---------- --------------Balance at 31 October 2006 238 3,250 184 1,494 5,166 ========= ========= ================= ========== ============== Balance at 1 May 2006 224 2,771 165 1,326 4,486 --------- --------- ----------------- ---------- --------------Changes in equity for year Change in share based payment reserve - - 1,256 - 1,256Profit for the year - - - 1,385 1,385 --------- --------- ----------------- ---------- --------------Total recognised income and expense for the year Dividends - - - (1,374) (1,374)Issue of share capital 51 5,269 - - 5,320 --------- --------- ----------------- ---------- -------------- Balance at 30 April 2007 275 8,040 1,421 1,337 11,073 ========= ========= ================= ========== ============== Share Share Premium Share based Retained capital account payment reserve earnings Total equity Balance at 1 May 2007 275 8,040 1,421 1,337 11,073 Changes in equity for first half of 2007Available-for-sale investments:Valuation (losses) taken to equity - - - (463) (463) --------- --------- ----------------- ---------- --------------Total recognised changes in equity for the period - - - (463) (463) Profit for the period - - - 1,242 1,242 --------- --------- ----------------- ---------- --------------Total recognised income and expense for the period - - - 1,242 1,242 Dividends - - - (828) (828) --------- --------- ----------------- ---------- --------------Balance at 31 October 2007 275 8,040 1,421 1,288 11,024 ========= ========= ================= ========== ============== Condensed consolidated interim cash flow statement Unaudited Unaudited Unaudited 6 months to 6 months to Year to 31 October 31 October 30 April 2006 2006 2007 £000 £000 £000 Cash flows from operating activitiesProfit after taxation 1,242 1,032 1,337Adjustments for: Share based payment adjustment - 19 1,256 Depreciation 97 94 181 (Profit)/loss on sale of fixed assets 18 (274) (137) Finance income (188) (40) (142) Finance expense - 15 15 Taxation expense recognised in income 532 520 1,321 statement Decrease in stock - 15 15 (Increase)/decrease in trade and 660 1399 (639) other receivables Decrease in trade and other payables (361) (1,950) (818) ------------- ------------ -------------Cash generated from operations 2,000 830 2,389Interest paid - - (14)Income taxes paid (504) - (937) ------------- ------------ -------------Net cash from operating activities 1,496 830 1,438 -------------- ------------ ------------- Cash flows from investing activitiesPurchase of property, plant and equipment (265) - (87)Purchase of investments - - (1,850)Proceeds from sale of property and equipment - 1,291 1,337Interest received 188 25 137 -------------- ------------ -------------Net cash (used in)/from investing activities (77) 1,316 (463) -------------- ------------ ------------- Cash flows from financing activitiesProceeds from issue of share capital - 143 4,970Dividends paid (826) (895) (1,374) -------------- ------------ -------------Net cash used in financing activities (826) (752) 3,596 -------------- ------------ -------------Net increase in cash and cash equivalents 593 1,394 4,571Cash and cash equivalents at beginning of 6,073 1,502 1,502period -------------- ------------ -------------Cash and cash equivalents at end of period 6,666 2,896 6,073 ============== ============ ============= Notes to the condensed consolidated interim financial statements 1 Nature of operations and general information Ashley House plc and subsidiaries' ('the Group') principal activities consist ofthe design and project management of primary care infrastructure constructionand asset management. Ashley House plc is the Group's ultimate parent company. It is incorporated anddomiciled in Great Britain. The address of Ashley House plc's registeredoffice, which is also its principal place of business, is The Priory, StompRoad, Burnham, Buckinghamshire, SL1 7LW. Ashley House plc's shares are listedon the Alternative Investment Market of the London Stock Exchange. Ashley House's consolidated interim financial statements are presented in PoundsSterling (£), which is also the functional currency of the parent company. These consolidated condensed interim financial statements have been approved forissue by the Board of Directors on 3 December 2007. The financial information set out in this interim report does not constitutestatutory accounts as defined in Section 240 of the Companies Act 1985. TheGroup's statutory financial statements for the year ended 30 April 2007,prepared under UK GAAP, have been filed with the Registrar of Companies. Theauditor's report on those financial statements was unqualified and did notcontain a statement under Section 237(2) of the Companies Act 1985. 2 Summary of significant accounting policies This interim financial information has been prepared by applying theIFRS-compliant accounting policies published on the group's website,www.ashleyhouseplc.com. 3 Basis of preparation These interim condensed consolidated financial statements are for the six monthsended 31 October 2007. They have been prepared following the recognition andmeasurement priciples of IFRS, because they are part of the period covered bythe Group's first IFRS financial statements for the year ending 30 April 2008.They do not include all of the information required for full annual financialstatements, and should be read in conjunction with the consolidated financialstatements of the Group for the year ended 30 April 2007. These financial statements have been prepared on the going concern basis, underthe historical cost convention, except for the revaluation of certain financialinstruments. These condensed consolidated interim financial statements (the interim financialstatements) have been prepared in accordance with the accounting policies setout below which are based on the recognition and measurement principles of IFRSin issue as adopted by the European Union (EU) and are effective at 30 April2008 or are expected to be adopted and effective at 30 April 2008, our firstannual reporting date at which we are required to use IFRS accounting standardsas adopted by the EU. Ashley House plc's consolidated financial statements were prepared in accordancewith United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice) until 30 April 2007. The date of transition to IFRS was 1May 2006. The comparative figures in respect of 2007 have been restated toreflect changes in accounting policies as a result of adoption of IFRS. Thedisclosures required by IFRS 1 concerning the transition from UK GAAP to IFRSare given in the reconciliation schedules published on the group's website. The accounting policies have been applied consistently throughout the Group forthe purposes of preparation of these condensed consolidated interim financialstatements. 4 Non recurring costs The non recurring costs relate to the IFRS 2 share based payment charge relatingto the issue of the warrant to Babcock and Brown and the expensed costs of thecompany's placing and admission to AIM in January 2007. 5 Share issue During the period to 31 October 2007, no shares were issued. (31 October 20061,166,667 shares were issued at a premium of £338,000 in total, 16 January 20073,333,333 shares were issued at a premium of £4,967,000, between 4 May 2006 and14 March 2007, 629,976 shares were issued at a premium of £549,000). 6 Earnings per share The calculation of the basic earnings per share is based on the earningsattributable to ordinary shareholders divided by the weighted average number ofshares in issue during the period. The calculation of diluted earnings per share is based on the basic earnings pershare, adjusted to allow for the issue of shares and the post tax effect ofdividends and/or interest, on the assumed conversion of all dilutive options andwarrants and other dilutive potential ordinary shares. Reconciliations of the earnings and weighted average number of shares used inthe calculations are set out below. Weighted Average number of Per share6 months to 31 October 2007 Earnings shares amount £000 PenceProfit after tax 1,242 ----------Earnings attributable to ordinary shareholdersWeighted average number of shares (used for basic earnings per share) 27,544,379Dilutive effect of options and warrants 3,698,810 ------------Diluted weighted average number of shares (used for diluted earnings per share) 31,243,189Basic earnings per share 4.51p =========== Diluted earnings per share 3.98p =========== Weighted Average number of Per share6 months to 31 October 2006 Earnings shares amount £ PenceProfit after tax 1,066 ----------Earnings attributable to ordinary shareholders -Weighted average number of shares (used for basic earnings per share) 22,443,453Dilutive effect of options and warrants 1,984,371 ------------Diluted weighted average number of shares (used for diluted earnings per share) 24,427,824 Basic earnings per share 4.75p ===========Diluted earnings per share 4.36p =========== 7 Dividends The dividends paid to equity shareholders over the past two years are set out below: Year to 30 April 2006 £000 Date Paid Interim dividend - -Final dividend 4p 898 29 September 2006Total dividend 4p 898 Year to 30 April 2007 Interim dividend 2p 476 26 January 2007Final dividend 3p 828 24 August 2007Total dividend 5p 1,304 This information is provided by RNS The company news service from the London Stock Exchange