Ashley House swings to interim loss as revenue drops

AIM-listed health and community care property partner Ashley House said on Wednesday that it swung to an interim loss as revenue declined.

In the six months to the end of October 2017, the group made a statutory loss before tax of £1.9m versus a profit of £800,000 the year before, and an adjusted loss before tax of £1.8m compared to a profit of £200,000. This came as revenue dropped to £7m from £10.7m.

Still, Ashley House said its joint venture with Morgan Sindall Investments and the government’s relaxation of its plans to cap housing benefit to Local Housing Allowance rates will enable it to remain profitable in the full year.

Chairman Christopher Lyons said: “As previously signalled, the company showed a loss for the period to 31 October 2017. In the last couple of months the removal of the threat of the LHA cap along with the establishment of the joint venture with Morgan Sindall were key events for the future of the company enabling it to press forward in the growth and delivery of its significant housing pipeline as well as the other activity in the business."

At 1110 GMT, the shares were down 2% to 11.52p.