Ashley House (LON:ASH)

Ticker: ASH
Sector: Construction & Engineering (AIM) - Floated 2007
http://www.ashleyhouseplc.com

Share Price: 7.75p

Yesterday, I was pleased to attend the AGM of Ashley House (LON:ASH), a microcap company where I have been a shareholder for the last 3 years. Over this period, however, I have taken little interest in the company for one reason or another but have kept an eye on it and various events over the last 12 months sparked my interest to put in some proper leg work and get to know the company better.

Firstly what does Ashley House actually do? Well, their website summarises this as follows:

Ashley House is a leading Extra Care Housing and Health Property Partner working with providers and commissioners in the public, private and community sectors. The Company has 25 years of experience in providing innovative approaches in the resourcing, funding, design and development of flexible and efficient social and community health, care and supported living environments”.

In essence they work with local councils / public authorities, funders (the likes of ‘Assura’ and ‘Funding Affordable Homes’) and external design teams (Architects, Planning Consultants etc) to design and build:

? Primary and community healthcare facilities (daycare centres, dental surgeries, secondary care centres etc) – this falling within their ‘Health’ Property offering

? Homes with care and support (affordable housing for older people or those with care needs) – this falling within their ‘Extra Care’ Housing offering. These schemes are typically 3-4 x the size of their ‘Health’ schemes although lower margin but generally ‘better’ schemes.

? Community Pathology labs and Social Welfare Centres – this falling within their ‘Community Infrastructure’ offering.

The previous bedrock of the Ashley House (LON:ASH) business was the ‘Health’ sector (GP surgeries) but this suffered a set-back around 2010 due to changes in Government policy (abolition of PCTs etc) and the company has since being re-establishing itself by successfully diversifying, primarily into the ‘Extra Care’ sector.

The Board comprises 2 Executives namely Antony Walters (CEO) and Jonathan Holmes (Commercial Director and ex. CEO). Christopher Lyons as the non-exec Chairman with Stephen Minion, Andrew Willetts and John…

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