Ashley House profits postponed by legal processes

Ashley House profits postponed by legal processes

Housing and Health property partner Ashley House Plc (LON: ASH) have posted a second trading update within a short space of time, adding a caveat to some of the results and payment of profits displayed in the previous update.

The Company stated that due to delayed legal processes, the profits of three Morgan Ashley extra care schemes would be delayed until the next year end June 30 2020. Ashley House added that the first of the three schemes’ legal processes had been finalised and the agreements would provide a strong start to the year.

Ashley House statement

The group’s statement read as follows,

“Further to the Trading Update of 25th June, the Company advises that due to delays in the final legal processes, the three Morgan Ashley extra care schemes mentioned in that update did not reach financial close prior to the end of the Company’s financial period to 30 June 2019. As a result the related profit from these schemes will fall into the year to 30 June 2020.”

“As reported this means that whilst the Company is likely to be profitable in the second part of the fourteen month period to 30 June 2019, it will show a loss for the full period. However, the Company is pleased to advise that the first of the three extra care schemes is all agreed, awaiting signature from the parties. In addition, for the further two schemes (one transaction) the complex legal documentation is almost agreed and the schemes are expected to reach financial close in the near future. Together, the Directors believe that these schemes will provide a strong start to the year to 30 June 2020.”

Investor notes

The Company’s shares are up 0.97% or 0.08p to 8.33p a share 05/07/19 08:15 GMT.

Elsewhere in property development and estate agency news, there have been updates from; Persimmon plc (LON: PSN), McKay Securities plc (LON: MCKS), MJ Gleeson PLC (LON: GLE), Somero Enterprises Inc (LON: SOM), Bovis Homes Group plc (LON:BVS) and Telford Homes plc (LON: TEF).