Designs, builds, and manages health & social care facilities
Joint Venture with construction firm Morgan Sindall
76% stake in modular construction business
What Ashley House does
Ashley House PLC (LON:ASH) is involved in the design, construction, and management of health and social care facilities. Originally a specialist in GP surgeries, the company has since moved into affordable and care housing.
The company is also engaged in extra care housing and health property partner services, which allows it to work with providers and commissioners in various sectors.
The company operates through three main branches;
• Health – focusing on facilities for health professionals such as primary care centres, GP surgeries, and laboratories
• Housing – affordable housing designed for the elderly and those with extra care needs
• Modular – an off-site construction business that delivers buildings such as student accommodation, school classrooms, hotels, and retail units
What it owns
The company’s modular construction arm is operated by its subsidiary F1 Modular, in which it owns a 76% stake while the remaining shares are owned by F1’s management.
Ashley House also holds an equal stake in a joint venture with Morgan Sindall Investments Limited, the investment arm of construction firm Morgan Sindall Group PLC (LON:MGNS).
The JV, known as Morgan Ashley, focuses on the delivery of extra care housing and care homes as well as assisted living accommodation.
• In the first half of the current year, the company said its health and housing pipeline had grown to 26 schemes with £222.5mln of gross development value, while the pipeline for its modular arm, F1M, had increased to 12 projects with £19.1mln of future value
• For the figures, the company reported a narrower pre-tax loss for the six months of £1.7mln compared to a loss of £1.73mln a year ago
• Net debt in the period was cut by more than half to £1.49mln from £3.51mln previously
In its outlook for the rest of 2019, Ashley House said it expected to become profitable in the 14 months to 30 June 2019, its new full-year reporting date.
“Whilst, as last year, a loss has been reported for the first six months of the financial period, also as last year it is expected that this will be more than covered in the second part of the period”, said Christopher Lyons, the firm’s chairman.
“F1M is making good progress and the diversification of the business continues such that Ashley House is becoming a Group operation with two supporting pillars in Morgan Ashley and F1M supplemented by the traditional health activity through Ashley House along with some fledgeling private sale developments and the growth of Partnering Health.”
With shares trading around 10.7p as of 1 February 2019, Ashley House carries a market cap of £6.6mln.