29 Oct 2012 12:42
Ashley House plc
29 October 2012
Ashley House plc (the "Company")
Result of AGM and statement
Ashley House plc, the health and social care property partner, held its AGM this morning at Newby Place, in East London.
Newby Place is one of the health properties the Company has developed through the LIFT programme giving attendees the opportunity to see at first hand Ashley House's work supporting community based health and social care delivery.
All the AGM resolutions were approved.
At the AGM Sir William Wells made the following statement in relation to current trading:
"As we approach our half year end on 31 October I am pleased to report we anticipate making a small profit at EBITDA level. The board remains confident of the delivery of the full year's results in line with market expectations.
This likely half year result is representative of trading in our core NHS market which continues to be tough. We remain confident that the NHS retains pent up demand for new properties but are being cautious and not expecting full recovery in the short term.
We are encouraged by the progress we are making into our selected new markets (much of it from local authorities and housing associations), particularly in extra care housing where we have significant interest in our offer to develop housing that provides sheltered care for people in their own homes as opposed to more expensive institutional or care home settings. We are currently on site with a pathology lab and are working on schemes in our new areas including a care home.
The pipeline remains strong and we will publish the updated chart along with the interim results.
This potential expansion comes at a time when the funding environment remains challenging with banks exercising extreme caution in lending either corporately or to projects.
Cash projections remain in line with budgets and although cash is tight net debt has fallen to £2.4m at today's date from £6.7m at the year end (£1.9m at 31 October 2011). Progress has also been made with the Company's site in Scarborough which accounts for £1.7m of our debt where heads of terms have been agreed with a purchaser at a level which will see a significant cash inflow to the Company on completion of sale. The deal is conditional on planning permission being granted and therefore completion will be delayed until our next financial year.
Overall, the Board is pleased that our health business remains at anticipated levels and is encouraged by the diversification into the extra care housing market which promises good prospects for future growth."
Enquiries:
Ashley House plc 01628 600 340
Jonathan Holmes, Chief Executive
Antony Walters, Finance Director
Citigate Dewe Rogerson 0207 282 2945
Ginny Pulbrook, Executive Director
Jos Bieneman, Manager
Numis Securities
(Nominated Adviser and broker to Ashley House plc)
Oliver Cardigan / David Poutney 0207 260 1000