Ashley House Share Discussion Threads

[cockerhoop] 18/5/2017 22:08

The problem that ASH have regarding the Extra Care housing is that because of the additional support the tenants are provided the costs exceed the capped level of housing benefit the government have introduced and many tenant require. An interim scheme was put in place but does not provide the level of visibility required for the forward funding of projects.

Hopefully a long term solution is forthcoming but with Brexit being the main focus I'm not holding my breath. ASH are obviously also looking at different paths to employ their skillset.

[whites123] 18/5/2017 20:53

The social care housing issue is all over the news.
ASH have been saying for years that it needed sorting out and now it would appear with all parties using it as a vote winner that action will be forthcoming.

Maybe some of the sign offs ASH have been waiting for will eventually come.

But even so, F1 are busy building.
ASH have already said that even with the delays we have been pre-warned about that they still expect to post a pre-tax profit.

My view is that we can see how just one or two small trades can move the share price that once interest is generated it will fly.

I am looking at 25 - 30p range with relative ease.
If within 3 years F1 does indeed return a minimum profit of £4 Million, then that valuation is going to look ridiculously cheap.

[first_things] 18/5/2017 13:15

Government is vowed to deliver 1 million more home by the end of 2020 and a further 500,000 by 2022 in a bid to tackle the housing crisis.

[first_things] 18/5/2017 10:54

Good to see the government talking about social care today and hopefully they will provide further details on funding for supported housing and commitments to build more affordable housing.

The share price looks set to tick up ahead of any news and government update on policy. In the short term the brokers target of 15p looks like the next stop and after that I would expect this target to be increased and dictated by news flow.

[cockerhoop] 18/5/2017 10:10

Whites123,

You're suggesting F1M is working at full production - do you have link.

[whites123] 18/5/2017 09:55

Pitiful low volumes.
Another opportunity for a few more.

With PROFIT LEVEL set at over £4 Million in 3 years for F1 alone, given that the whole market valuation for ASH is only 4.5 million, if it is remotely suggested they can achieve it then we will see a rerating of immense proportions.

Expecting to post a profit next results, even including government induced delays with social care housing.

[whites123] 18/5/2017 07:39

The minority shareholders of F1 Modular, clearly believe they can produce the goods.
ASH with a MC of £4M

Yet targets are clear. Minimum profits of £4 Million from F1 in 3 years.

Effectively profit alone from F1 needs to equal more than the whole of ASH is currently valued at.
And they believe they can do it.
This will also bolster ASH main sector of getting on with what they do.
Its a great move to acquire F1 and very exciting. The site is working at full production.

The additional 24% of shares can revert to the minority shareholders once the enlarged F1M has achieved profits of more than £4m over the next three years.

[whites123] 18/5/2017 07:33

The minority shareholders of F1 Modular, clearly believe they can produce the goods.
ASH with a MC of £4M

Yet targets are clear. Minimum profits of £4 Million from F1 in 3 years.

Effectively profit alone from F1 needs to equal more than the whole of ASH is currently valued at.
And they believe they can do it.
This will also bolster ASH main sector of getting on with what they do.
Its a great move to acquire F1 and very exciting. The site is working at full production.

The additional 24% of shares can revert to the minority shareholders once the enlarged F1M has achieved profits of more than £4m over the next three years.

[norbert colon] 18/5/2017 07:27

https://www.thetimes.co.uk/edition/news/ramshackle-social-care-close-to-total-collapse-warn-experts-d8ccl0pch

[my retirement fund] 17/5/2017 13:59

Nice to see the continued buying volume.

[whites123] 17/5/2017 12:47

ld, but most recent update provided us with many snippets to whet our whistles.
The Directors are fully aligned with us in that they all hold shares bought with their own cash at much higher prices that current share price

Ashley House plc



Acquisition and Trading Update





Ashley House plc (the "Company"), the Extra Care Housing and Health Property Partner today announces an Acquisition and provides a Trading Update. The Trading Update highlights the risk of delays to the closing of certain projects arising from ongoing uncertainty of Government funding support for such projects which might result in revenues being delayed from the year ended 30 April 2017 into the subsequent financial period. As a result of this ongoing uncertainty, the Board has been actively seeking revenues less dependent on Government funding and consequently has today completed the Acquisition of the business and assets of a modular off-site construction partner with whom the Company has been working in the last year.

Acquisition

Ashley House is pleased to announce that its majority owned subsidiary, F1 Modular Limited ("F1M") has completed the acquisition of the assets and business of its former modular off-site construction partner. Ashley House has simultaneously increased its ownership of F1M to 76%.

Ashley House first invested into F1M in May 2016 as a platform to win schemes for modular construction extending the Company's range of activity. This provided Ashley House with good visibility of the existing market for modular construction and the opportunities specific to Ashley House. The opportunity to acquire the business and assets of F1M's current modular partner has now arisen.

"Modern Methods of Construction" or "Offsite Construction" is poised to play an increasing part in the UK building and development industry. Highlighted in the recent white paper, Fixing Our Broken Housing Market, the Prime Minister stated in her foreword: "We will diversify the housing market, opening it up to smaller builders and those who embrace innovative and efficient methods". The Homes and Communities Agency has now been tasked with stimulating this sector via a £2bn fund.

F1M (as enlarged by today's acquisition) is the only modular contractor to hold a place on Local Government's LHC national framework NH1 for Housing and is currently bidding to deliver mixed developments including private accommodation. The short term pipeline includes contracted housing for two Local Authorities (one of which is currently in the factory) specialist units for a Welsh Council and a flow of work with an innovative retail developer delivering ready built retail pods. F1M is seeking to extend its reach into schools, student accommodation and other similar products which are well suited for building in a factory before being transported to site.

It is also capable of delivering a significant proportion of Ashley House's own pipeline as the Company will use a mixture of off-site and traditional build methods for its schemes. It is this ability to provide an integrated approach involving a modular solution which was a key benefit in the Company's recent bid win in York of a 70 bedroom Care Home. This scheme is expected to start onsite during the Company's next financial year.

The minority shareholders in F1M are individuals already involved in the modular business undertaking sales and technical management roles. Ashley House is confident that together it has the experience, management expertise and most importantly track record with potential clients to properly manage and grow the enlarged F1M business.

The business being acquired by F1M from administration produced a loss of £93,000 in the year to 31 December 2015 (the latest available financial statements). F1M has agreed to pay £113,500 for the plant, machinery and other assets of this business and is entering into a new lease on the 80,000 square foot factory with an option to acquire the freehold over the next six months and again after a further five years.

For the year to 31 May 2016, F1M produced a loss of £29,000. Ashley House has today increased its holding in F1M from 52% to 76% for a maximum consideration of £250,000, £240,000 of which is payable only when the enlarged F1M is profitable and a loan of £210,000 from Ashley House has been repaid. The additional 24% of shares can revert to the minority shareholders once the enlarged F1M has achieved profits of more than £4m over the next three years.

Acquisition funding is from Ashley House's own cashflow and will be supplemented in due course by debt to fund working capital on contracts and on plant and equipment.

Trading Update

As highlighted in the Interim Results statement of 25 January 2017, the Company has been working to agree arrangements with Local Authority and Housing Association partners in order to financially close enough of the supported housing or Extra Care pipeline schemes needed to achieve the anticipated levels of profit for the year to 30 April 2017.

These partners are hesitant to formally agree final arrangements whilst the current ongoing Government consultation relating to the funding for supported housing takes place. Despite continued positive discussions between partners, the agreements are still not in place and although they may yet conclude in time it is increasingly likely that they may fall into the following financial year.

Even if these discussions do not lead to the achievement of financial close of the schemes prior to the year end, the Board advises that it believes the business will still achieve a small profit at Profit before Tax level for the current financial year.

It is still very much believed that Extra Care will be an increasing and successful part of the business and will provide significant growth in the near future. The Board however is immensely frustrated at the continued impact of Government policy change on this key area of the business. Consequently the Company has been working to develop business streams less reliant on direct Government support and the Acquisition above leads directly into this.



Commenting on the acquisition Antony Walters, Chief Executive said "This is a key opportunity for Ashley House to broaden its scope of activity and exploit new opportunities in the housing, care, education, leisure and related markets. We have identified a significant market demand of off-site construction solutions and the need to create a new range of products that compliment those reliant on Government for funding. We look forward to working with our new colleagues within F1 Modular and building a socially sustainable business by integrating development and modular construction."

[whites123] 17/5/2017 12:47

Old, but most recent update provided us with many snippets to whet our whistles.
The Directors are fully aligned with us in that they all hold shares bought with their own cash at much higher prices that current share price

Ashley House plc



Acquisition and Trading Update





Ashley House plc (the "Company"), the Extra Care Housing and Health Property Partner today announces an Acquisition and provides a Trading Update. The Trading Update highlights the risk of delays to the closing of certain projects arising from ongoing uncertainty of Government funding support for such projects which might result in revenues being delayed from the year ended 30 April 2017 into the subsequent financial period. As a result of this ongoing uncertainty, the Board has been actively seeking revenues less dependent on Government funding and consequently has today completed the Acquisition of the business and assets of a modular off-site construction partner with whom the Company has been working in the last year.

Acquisition

Ashley House is pleased to announce that its majority owned subsidiary, F1 Modular Limited ("F1M") has completed the acquisition of the assets and business of its former modular off-site construction partner. Ashley House has simultaneously increased its ownership of F1M to 76%.

Ashley House first invested into F1M in May 2016 as a platform to win schemes for modular construction extending the Company's range of activity. This provided Ashley House with good visibility of the existing market for modular construction and the opportunities specific to Ashley House. The opportunity to acquire the business and assets of F1M's current modular partner has now arisen.

"Modern Methods of Construction" or "Offsite Construction" is poised to play an increasing part in the UK building and development industry. Highlighted in the recent white paper, Fixing Our Broken Housing Market, the Prime Minister stated in her foreword: "We will diversify the housing market, opening it up to smaller builders and those who embrace innovative and efficient methods". The Homes and Communities Agency has now been tasked with stimulating this sector via a £2bn fund.

F1M (as enlarged by today's acquisition) is the only modular contractor to hold a place on Local Government's LHC national framework NH1 for Housing and is currently bidding to deliver mixed developments including private accommodation. The short term pipeline includes contracted housing for two Local Authorities (one of which is currently in the factory) specialist units for a Welsh Council and a flow of work with an innovative retail developer delivering ready built retail pods. F1M is seeking to extend its reach into schools, student accommodation and other similar products which are well suited for building in a factory before being transported to site.

It is also capable of delivering a significant proportion of Ashley House's own pipeline as the Company will use a mixture of off-site and traditional build methods for its schemes. It is this ability to provide an integrated approach involving a modular solution which was a key benefit in the Company's recent bid win in York of a 70 bedroom Care Home. This scheme is expected to start onsite during the Company's next financial year.

The minority shareholders in F1M are individuals already involved in the modular business undertaking sales and technical management roles. Ashley House is confident that together it has the experience, management expertise and most importantly track record with potential clients to properly manage and grow the enlarged F1M business.

The business being acquired by F1M from administration produced a loss of £93,000 in the year to 31 December 2015 (the latest available financial statements). F1M has agreed to pay £113,500 for the plant, machinery and other assets of this business and is entering into a new lease on the 80,000 square foot factory with an option to acquire the freehold over the next six months and again after a further five years.

For the year to 31 May 2016, F1M produced a loss of £29,000. Ashley House has today increased its holding in F1M from 52% to 76% for a maximum consideration of £250,000, £240,000 of which is payable only when the enlarged F1M is profitable and a loan of £210,000 from Ashley House has been repaid. The additional 24% of shares can revert to the minority shareholders once the enlarged F1M has achieved profits of more than £4m over the next three years.

Acquisition funding is from Ashley House's own cashflow and will be supplemented in due course by debt to fund working capital on contracts and on plant and equipment.

Trading Update

As highlighted in the Interim Results statement of 25 January 2017, the Company has been working to agree arrangements with Local Authority and Housing Association partners in order to financially close enough of the supported housing or Extra Care pipeline schemes needed to achieve the anticipated levels of profit for the year to 30 April 2017.

These partners are hesitant to formally agree final arrangements whilst the current ongoing Government consultation relating to the funding for supported housing takes place. Despite continued positive discussions between partners, the agreements are still not in place and although they may yet conclude in time it is increasingly likely that they may fall into the following financial year.

Even if these discussions do not lead to the achievement of financial close of the schemes prior to the year end, the Board advises that it believes the business will still achieve a small profit at Profit before Tax level for the current financial year.

It is still very much believed that Extra Care will be an increasing and successful part of the business and will provide significant growth in the near future. The Board however is immensely frustrated at the continued impact of Government policy change on this key area of the business. Consequently the Company has been working to develop business streams less reliant on direct Government support and the Acquisition above leads directly into this.



Commenting on the acquisition Antony Walters, Chief Executive said "This is a key opportunity for Ashley House to broaden its scope of activity and exploit new opportunities in the housing, care, education, leisure and related markets. We have identified a significant market demand of off-site construction solutions and the need to create a new range of products that compliment those reliant on Government for funding. We look forward to working with our new colleagues within F1 Modular and building a socially sustainable business by integrating development and modular construction."

[norbert colon] 17/5/2017 11:53

Construction sector media piece re: Govt plans for social housing.http://m.building.co.uk/5087735.article?mobilesite=enabledThe future for ASH could start to look a lot rosier.

[first_things] 17/5/2017 10:52

Looks like it will keep ticking up on small volume and next stop brokers target of 15p

[wskill] 17/5/2017 10:01

Especially when you see ASH paid out a final divi of 4p a few years ago far too cheap with present prospects .

[whites123] 17/5/2017 09:55

Clearly oversold.
Result of 1 buy of just 100k resulted in immediate rise.

Unbelievable.

Waiting to pop.

News regards f1 will have that effect for sure.

[whites123] 17/5/2017 09:48

Liquidity has improved a bit. Managed to grab another few, but had to do so as a 60 and a 40 as max 1 trade was 70.

So very overlooked and in oversold territory.

[first_things] 17/5/2017 09:28

How many Regional Hubs could the business create?

A factory capable of manufacturing 250 – 400 homes a year.

400 homes X £100,000 = £40,000,000

[whites123] 17/5/2017 07:42

Our Regional Hubs Plan

The new LHC framework provides a unique opportunity for the public sector to directly procure modular offsite housing via a fully audited framework. The market potential is huge – running into the billions. Volumetric housing supply at only 5% of the currently envisaged annual UK requirement would be circa 10,000 units annually, and represent a potential factory value circa £500 million.

• It is estimated that there is an annual demand for around 250,000 affordable houses
• Most councils need to provide at least 1,000 homes
• A typical scheme to deliver 1,000 homes will cost at least £100 Million – Turnkey at an average of £100,000/house
• A factory capable of manufacturing 250 – 400 homes a year would employ 80 – 100 local people. This would create a business hub for the benefit of the whole community
• The supply chain would be kept local or would be attracted into the area creating more jobs and occupy empty factories/retail units
• The housing would be delivered faster – weeks rather than months
• Environmental impact is much lower
• Housing quality is much higher owing to ISO900 controlled factory conditions
• Homes are constructed using better construction materials and methods
• Energy costs are lower due to more efficient thermal properties
• We deliver a fabric first code 4 home for the cost of a traditionally built code 3 home
• More people employed means more taxes. More homes mean more council tax
• The funds used for the scheme can be kept within the local community

[whites123] 17/5/2017 07:41

All these little rises on small volume.
F1 Modular I am hopeful is going to prove to give a huge boost when we get the next update.

Contracts won would certainly suggest so.

[whites123] 15/5/2017 14:59

Up slightly to 7.55 offered for 200,000
Vs 8.36 to buy 10,000

God forbid what would happen if momentum pi's got wind of it.

Or more people researched Ashley House and realised what an oversold gem it really is.

[first_things] 15/5/2017 11:37

The steady flow of buys keep coming.............

[wskill] 15/5/2017 10:32

No L2 but this company is due for a tick up with the recent news on social housing investment alone ASH will be one of the companies gaining from this government investment.
Will pick up a few at this level £4.5m market cap is far too low with current revenue and profitable as well.

[first_things] 15/5/2017 10:27

More small buys comes into the stock this morning and no sellers at these levels.
Looks set for another tick up today aimed continued "momentum"
Anybody got level two?