Ashley House profits boosted by strong cash performance

Health and social care property group Ashley House saw profits increase almost a third in its last trading year, despite turning in flat revenues.

Ashley House's gross profits jumped 31% to £4.74m in its last trading year, even as revenues dipped 0.49%, as the group saw an improved cash performance during the period. Cash generated from operations grew 51% to £1.51m and the group successfully cut its net debt by 41% to £1.49m.

The housing and health unit's pipeline contained 22 schemes with a development value of £206.4m, while there were 11 modular developments with a total value of £18.5m

Chairman Christoper Lyons said the AIM-listed company was making "significant positive change to the business" which, coupled with a reversal by the UK government on a restriction to housing benefit that had effectively stalled development, had led to the improved performance across the group.

"The group was able to close four major schemes in the latter part of the year which together with the joint venture agreement with Morgan Sindall Investments, has enabled the group to provide a much-improved performance for the year to 30 April 2018," said Lyons.

In December, Ashley House established a 50/50 joint venture Morgan Sindall Investments to deliver extra care housing, care homes and supported living housing.

As of 1125 BST, Ashley House shares had shot up 15.8% to 15.98p.