Ashley House plc
Report and  
accounts 2010
Supporting change
in health and social care
Ashley House plc
The Priory
Stomp Road
Burnham
Buckinghamshire
SL1 7LW
Telephone: +44 (0)1628 600340
Fax: +44 (0)1628 600345
www.ashleyhouseplc.com
Ashley House plc Report and accounts 2010 Strength – in depth and reliability
Ashley House is a leading health & social care 
infrastructure company, with almost 20 years experience  
in delivering healthcare development projects efficiently  
and cost effectively. Our approach is based on building 
lasting working partnerships with our clients and their  
local communities. These relationships remain central  
to the business sustaining consistent and ongoing growth 
for all our stakeholders. This has been a year of challenges 
but the group is evolving to benefit from changes in the 
NHS and public sector.
Contents
01 Highlights
02 Our business model
03 Projects and pipeline
04 Chairman’s statement
05 Enhanced services
06 Case study: Goscote Palliative Care Centre
08 Case study: Pharmacy joint venture
10 Chief Executive’s statement
12 CSR review
14 Case study: Stanwell Health and Community Centre
16 Case study: Brent House Surgery, Bridgwater
18 Board of directors
20 Report of the directors
22 Consolidated statement of comprehensive income
23 Consolidated balance sheet 
24 Consolidated statement of changes in equity
25 Consolidated statement of cash flows
26 Principal accounting policies 
32 Notes to the financial statements
49 Remuneration committee report
51 Statement of directors’ responsibilities
52 Report of the independent auditor
53 Company balance sheet
54 Company principal accounting policies
56 Notes to the company financial statements
60 Company information
 
Cover images
1. Nurse and patient 
Meriden Surgery, Watford
2. Meriden Surgery, Watford – Completion date: October 2009  
Ashley House provided a replacement Primary Care Centre for the branch surgery  
of a large town centre based GP practice. The part single, part two storey building 
now provides a much improved base for the practice. It comprises 428m
2
 of 
primary care accommodation and has a 100m
2
 pharmacy. 
3. Topping out ceremony at Goscote, Walsall 
NHS Walsall’s £5.4 million Palliative Care Centre currently being built in 
conjunction with Wolverhampton & Walsall LIFTco. See pages 6 & 7. 
4. Achievement of ISO14001 – Certificate Presentation by BSI:  May 2010  
Michelle Timpson, Customer Services Manager of the BSI Group presented Nigel 
Croxford, Technical Director and Mark Marston, Marketing Manager of Ashley 
House with the ISO14001 award for meeting the requirements for Environmental 
Management Systems. For further information see our CSR review pages 12 & 13. 
5. Hartfield Surgery, Sussex – Completion date: December 2009 
The Practice previously provided care for its patients from a modular building.  
Ashley House delivered a purpose built surgery within budget and on programme 
with functional and wider environmental objectives being met in a contemporary 
building responsive in terms of form and materials to its rural setting. 
This report has been printed in the UK. It has been produced with the  
approach to measure and meet environmental standards and improve  
a company’s environmental performance, where the main areas targeted  
for continual reduction arise from the use of solvents, energy consumption  
and waste generation. 
 
This paper is manufactured using a paper that is 75% recycled with the  
remainder being made from environmentally-friendly Elemental Chlorine  
Free (ECF) wood pulp sourced from well-managed sustainable forests. The  
paper is also bio-degradable and recyclable. All inks used are vegetable based. 
 
If you have finished reading this report and no longer wish to retain it please  
pass it on to other interested readers, return it to Ashley House plc or dispose  
of it in your recycled paper waste. Thank you.
5
3
1 2
4  Report and accounts 2010 Ashley House plc 01
Highlights
 Financial
> Revenue up 5% to £24.9m (2009: £23.8m)
> Pre- Tax Profit before exceptionals fell 55% to £2.5m (2009: £5.5m)
> Earnings per share down 75% to 2.5p (2009: 10.0p)
> Final Dividend 3.0p per share, giving a total for the year of 4p (2009: 4.0p)
> Net Assets up 19% to £46.0m (2009: £38.7m)
Operational
>  Strong underlying business with forward pipeline of £264m of project 
value (2009: £245m)
>  Successful acquisitions of Sapphire Primary Care Developments  
and Strategic Property Solutions
>  No scheme cancellations despite delays from Government  
spending reviews
2.5 10
5.1 08
09
4.1 07
2.7 06
19.8 08
25.6 07
23.1 06
Revenue
£m
+5%
24.9 10
23.8 09
Net assets
£m
+19%
Pre-tax profit (before exceptionals)
£m
-55%
5.5
46.0 10
4.5 06
11.0 07
13.4 08
38.7 09
Strong  
underlying 
business
Period shown is from 2006 to 2010. 02 Ashley House plc Report and accounts 2010
Evolution 
developing an adaptable business
Our business model continues to adapt in order to  
face the developing challenges of a changing market. 
Understanding of change underpins all our strategic  
and operational planning whilst supporting the ongoing 
delivery of positive results.
Our activities:
Design & Construction Management Services
Ashley House has nearly 20 years experience as one of the 
UK’s leading specialists in project management, consultancy 
and design & construction of medical property facilities.  
Our in house team of surveyors, architects and project 
managers deliver a complete ‘one stop’ service incorporating 
feasibility, site acquisition, planning and design & build.  
This is delivered for:
>
 Primary and Intermediate Healthcare
>
 NHS LIFT Companies
>
 Community and Social Care
We offer a complete ‘one stop’ professional design and construction 
service from site finding through feasibility assessment, design, 
planning, and construction. 
Ashley House is the development partner in 7 NHS LIFT Companies. 
Each LIFT company has an exclusive right to deliver infrastructure 
projects for a total of 14 PCTs and an ability to work for the  
Local Authorities.
These long term arrangements, with at least 16 years left to run, 
provide the opportunity to develop long term partnerships with PCTs 
and local communities to develop service and estates strategies from 
which a sustainable programme of development emerges.
Ashley House combines expert property services with complimentary 
specialist operational knowledge to deliver modern, person centred 
buildings in a diverse range of settings. More efficient locally 
provided services can often be provided at lower cost. 
Our team understands the issues faced by the public sector in  
the delivery of services to the communities they serve and applies 
guiding principles such as choices, rights, independence and 
inclusion, bringing a fresh and innovative approach to the health 
and social care sectors.
The management of assets and operations for primary  
care related activities comprises property portfolio asset 
management, whole estate management; operation of  
NHS LIFT companies and operation, back office and bidding 
services for clinical service joint venture companies. The areas 
covered by these activities are:
>
 NHS LIFT Companies
>
 Asset and Estate Management
>
 Clinical Services
>
 Pharmacy Joint Ventures
With our team of estates professionals, Ashley House has the ability 
to deliver expert asset and estate management services to PCTs  
and LIFTCos.
The team manages the portfolio of AH Medical Properties plc which 
offers sale and leaseback opportunities to GPs.
We help NHS bodies to explore the possibilities of whole estates 
management structures whereby estates can be acquired through  
JVs and then developed and managed by Ashley House.
Ashley House has a healthy working relationship with 
Lloydspharmacy with some of our completed schemes hosting  
Lloyds as their pharmacy partner. Through the acquisition of  
Sapphire Primary Care Developments the relationship has been  
fully consolidated into an effective strategic partnership, wherein we 
are jv partners in new Lloyds Pharmacies opened in our surgeries.
The philosophy behind the Ashley House Clinical Services division is 
to partner with NHS associated bodies, in particular GP consortia, to 
support clinicians to develop and deliver solutions to meet the NHS’ 
demands without losing local sovereignty.
The stakeholders 
We work with a broad range of stakeholders within the public sector, including GPs, Local Councils, Primary Care, Foundation and other  
NHS Trusts and Strategic Health Authorities.
Evolving 
business  
model  Report and accounts 2010 Ashley House plc 03
1
2
3
4
2
Projects and pipeline
Our portfolio continues to expand nationwide through 
our NHS LIFT partners and following the acquisitions 
of Sapphire Primary Care Developments and Strategic 
Property Solutions.
Hackney
Harrow
5
6
7
NHS LIFT
London
Greenwich
NHS LIFT London
Tower 
Hamlets
  Clinical services JVs
 Hampshire, Portsmouth
 West Sussex, Worthing
 Wiltshire, Salisbury
  Pharmacy JVs
 Brighton, Hollingbury  
 (Carden Hill)
 Brighton, Whitehawk  
 (Wellsbourne)
  Ashley House  
regional offices
 HQ: Bucks, Burnham
 Essex, Colchester
 Scotland, Glasgow
 London, Waterloo
 Warwickshire, Nuneaton
 Cheshire, Runcorn
 Sussex, Worthing
 Wales, Monmouthshire
 NHS LIFT interests
1  Dudley Infracare LIFT
  SHA area: West Midlands 
 PCTs covered: NHS Dudley
2   Healthcare Improvement 
Partnership (Wolverhampton 
City & Walsall) 
  SHA area: West Midlands 
 PCTs covered: Wolverhampton  
  City NHS, NHS Walsall
3 Oxford Infracare LIFT 
  SHA area: South Central 
 PCTs covered: NHS Oxfordshire
4 Bristol Infracare LIFT
  SHA area: South West 
 PCTs covered: NHS Bristol
5 BHH LIFT Company
  SHA area: London 
 PCTs covered: NHS Brent,
 NHS Harrow, NHS Hillingdon
6  Bexley, Bromley and 
Greenwich LIFT Company
  SHA Area: London 
 PCTs covered: NHS Bromley, 
  Bexley NHS Care Trust,  
NHS Greenwich
7 East London LIFT Company
  SHA area: London 
  PCTs covered: NHS City & Hackney, 
NHS Newham, NHS Tower Hamlets
  Projects recently completed  
and in progress
  Berkshire, Bracknell
 Birmingham, Ley Hill
 Birmingham, Soho
 Brighton, Whitehawk (Wellsbourne)
 Bristol, Downend
 Dorset, Corfe Castle
 East Cleveland, Loftus
 East Sussex, Hartfield
 Essex, Doddinghurst
 Essex, Great Yeldham
 Essex, Witham
 Hampshire, Cowplain 
 Hertfordshire, Watford
 Lancashire, Garstang
 London, Greenwich
 London, Hackney 
 London, Harrow
 London, Tower Hamlets
 Middlesex, Stanwell
 Merseyside, St. Helens
 Monmouthshire, Trellech
 North Yorks, Scarborough
 Northamptonshire, Duston
 Nottinghamshire, Sutton-in-Ashfield
 Somerset, Bridgwater
 South Humberside, Grimsby
 Surrey, New Malden
 Surrey, Surbiton
 Sussex, Hartfield
 Sussex, Wellsbourne
 Tyne and Wear, Crawcrook
 Tyne and Wear, Chapel House
 Walsall, Goscote
 West Midlands, Balsall Common
 West Yorkshire, Silsden
Dudley Infracare LIFT Oxford Infracare LIFT Bristol Infracare LIFT BHH LIFTCo Bexley, Bromley and 
Greenwich LIFT Co
East London LIFT Co Healthcare Improvement Partnership
(Wolverhampton City and Walsall)
Increasing 
national 
coverage 04 Ashley House plc Report and accounts 2010
As we announced in our pre-close statement we have not to 
date experienced any project cancellations. Even in London 
where the new Government showed some concern around 
NHS London’s plans for polyclinics it is emerging that where 
schemes have GP support and deliver clear benefits, in terms of 
both service and cost, then they are proceeding. This is the case 
with most of the schemes we have been working on with our 
partners. Change in the NHS presents an opportunity for us. 
Shifting care to community settings means estate needs to 
change and Ashley House is positioning itself as a partner to 
help deliver that change. This is not just happening in the NHS 
but in other areas of public service, hence the importance to us 
of our involvement in the LIFT market which allows us to work 
in partnership with Local Authorities and other public bodies. 
Indeed, as part of our diversification plan, we announced in 
February the conditional acquisition of the specialist mental 
health and extra care developer Strategic Partnership Solutions 
(“SPS”), widening our skills and expertise in an important 
market closely aligned to the NHS.
Outlook
As a result of the delays and uncertainty in our core market we 
are continuing to explore opportunities to broaden our service 
offer and client base and in so doing increase revenues. Growth 
is expected to continue to be slow during the current financial 
year given the uncertain environment in which we are
operating. Our diversification plan is designed to enable the 
Group to benefit from NHS and general Public Sector change 
and this is expected to position the business for future growth.
Sir William Wells
Chairman
5 July 2010
Results and dividend
I am pleased to confirm that our final results are in line with  
the guidance given at our pre-close announcement made on  
4 May 2010. Revenue grew to £24.9m (2009: £23.8m) whilst 
profit before exceptionals and tax fell to £2.5m (2009: £5.5m). 
Underlying profit was in excess of £4m but reported profit
held back principally due to retained schemes being financed 
within the group as outlined in the pre close announcement. 
The year was challenging because concerns within the NHS 
over public spending led to delays and re-assessment of 
commitments in most areas. This was compounded by political 
uncertainty leading up to the May general election. Both of 
these factors have led to delays to many of the projects we  
are working on, slowing our revenue growth and reducing 
profitability. Despite the delays in schemes we have not had  
any project cancellations and the business has both grown  
and remained profitable. Consequently the Board has proposed 
a final dividend of 3.0p per share, resulting in a total of 4.0p  
for the year (2009: 4.0p).
Our market
NHS Trusts continue to be cautious about their budgets. 
Despite commitment from the new Government to the NHS, 
there remains a lack of clarity around a number of policy  
areas. Nonetheless current policy seems to be committed  
to the shift of care towards care out of hospital into GP led 
settings, a market in which we specialise. We have also been 
encouraged that our LIFT partnerships with Councils and NHS 
Trusts appear to be regarded as important delivery vehicles  
in local estate change.
Chairman’s statement
With our revenues growing from a solid pipeline of opportunities, 
we look forward to the future with confidence.
Sir William Wells, Chairman
Positioned  
for growth  Report and accounts 2010 Ashley House plc 05
Enhanced services
and consolidation of our market position
The acquisitions of Sapphire Primary Care Developments  
and Strategic Property Solutions have enabled  
Ashley House to strengthen its position in its established 
market and enter a new growth sector.
New expertise and knowledge
Strategic Property Solutions acquisition 
January 2010 
The acquisition of the business of Strategic Property Solutions 
(SPS), a developer of community based mental health facilities 
forms part of a two pronged strategy of diversifying the  
Ashley House business away from its reliance on PCTs and  
NHS (mental health, work with Councils through LIFT etc)  
and increasing recurrent, fee based, more predictable revenues 
(asset and estate management work, partnering services in 
LIFT, fee based client side project work in LIFT). 
Ashley House is now able to develop services for vulnerable 
people. By working with the additional expertise of SPS, the 
group is able to further develop its expert property services 
with complimentary specialist operational knowledge. Research 
suggests that poor health and vulnerability are associated with 
not only the levels and quality of the support package, but  
also with the style and standard of accommodation. We are 
currently working with a number of commissioning partners 
from local authority social services and NHS Trusts in planning 
and delivering a number of projects including dementia care 
centres and supported living centres. New projects in this area 
are driven by national strategy, guidance documents and 
reports such as the national dementia strategy, ‘Living Well  
with Dementia’. We endorse this strategy and recognise that by 
combining the same with local conditions, and working closely 
with our partners, we can deliver bespoke provision wherever 
we work. 
Developing 
by acquisition
Combining the strengths of two 
established companies
Sapphire acquisition
November 2009
The acquisition of the assets and business of Sapphire Primary 
Care Developments (SPCD) from Lloydspharmacy further 
established Ashley House’s strength in the health centre 
development market. The deal provided Lloyds Pharmacy  
with a strategic partnership and equity stake in Ashley House.  
A joint venture for pharmacies will provide Ashley House  
with a regular income stream. 
The fully integrated operation sees the creation of:
>
  A single combined team of professionals from two  
established providers. 
>
  Additional levels of expertise and increased capacity. 
>
  The close relationship with Lloyds Pharmacy will bring  
to us a network of 1,650 community Pharmacists  
each with local knowledge and Healthcare contacts. 
>
  A wider geographic presence with an office in Scotland 
Jonathan Holmes, Chief Executive of Ashley House said:
“This is a very attractive deal for both Ashley House and 
Lloydspharmacy playing to each of our strengths,” 
 
“The deal boosts our already significant pipeline of projects 
while providing us with a long term partner in our new  
joint venture.” 
Lloydspharmacy built up the SPCD business from start-up in 
2001. Andrew Willetts, Finance Director of Lloydspharmacy, 
joined the Ashley House board as non-executive director. 
Following the acquisition, Antony Walters, former Managing 
Director of Sapphire joined the Ashley House board as Finance 
Director. At the same time, David Hartshorne, Chief Operating 
Officer, also became a Director. These two appointments have 
strengthened the board and provided further expertise and 
strong industry experience. 
Case studies 06 Ashley House plc Report and accounts 2010
Delivering better quality healthcare
through our partnerships in NHS LIFT
The Goscote Palliative Care Centre is a key part of the NHS Walsall strategic plan  
for the development of community-based Palliative Care services for Walsall.
a working
partnership
with
Case studies
“The Goscote Palliative Care Centre development has been an 
exciting project for NHS Walsall, especially as the first Walsall LIFT 
scheme. Having been Walsall estates lead on numerous Primary 
Care 3PD schemes, I can confirm that the level of consultation and 
face to face contact has been a really positive aspect of this scheme, 
including a strong sense of continuity and ‘can do’ approach 
amongst all the partners.”
Mike Lyden  
Estates Manager, NHS Walsall
Walsall  Report and accounts 2010 Ashley House plc 07
Goscote Palliative Care Centre,  
Walsall, West Midlands
Construction of the Palliative Care Centre began in October 
2009 as part of the implementation of a new integrated End  
of Life Care Strategy for the residents of Walsall. The new 
in-patient hospice, due for completion in November 2010, will 
be the first dedicated hospice facility for adults within Walsall.
It is being delivered through a Public Private Partnership 
established under the LIFT initiative and will provide the 
community of Walsall with 12 in-patient Hospice beds, a day 
hospice and out-patient rehabilitation services and a range  
of specialist Palliative Care support services, including 
complementary therapies.
The £5.5m scheme will see the construction of a new two 
storey building of 2,500 m
2
 providing a range of new in-patient 
and out-patient Adult Palliative Care services under a 25 year 
concession to build and manage the new facility.
The unit will accommodate the following:
>
 In-patient Palliative Care services (12 beds)
>
  Out-patient Therapies including Blood Transfusions,  
Palliative Chemotherapy and Day Hospice services
>
  Specialist Nursing across a range of disciplines
>
  Lymphoedema Services e.g. for swollen limbs and side 
effects of cancer treatment
>
  Complementary Therapy services
>
  Allied Health and Social Care workers
>
  Bereavement, Counselling and Psychology services
>
  Information services
>
  Training and Development facilities
>
  Voluntary services
As part of a successful £100,000 Arts Council bid, the Goscote 
development will include a range of newly commissioned 
artwork, to include:
>
  A 3D centre piece within the internal courtyard of the building
>
  A stained glass window to the Spiritual Space
>
  A sculpture and land art trail in the grounds of the building 
including a folly, gazebo and garden
>
  A variety of artwork and photographs for display within  
the building
“I am delighted to see the progress that has been made 
towards the construction of the Palliative Care Centre. This new 
facility will be a major improvement in the care and support 
patients and their families receive. This new development will 
be a centre of excellence that the residents of Walsall can be 
proud of.”
Dr Archenhold
Chairman, NHS Walsall
Pictured laying the topping out ceremonial stone is from left; 
Julian Rainsford, Director of Estates and Facilities, NHS Walsall,  
David Hartshorne, Chief Operating Officer, Ashley House plc,  
Dr. Archenhold, Chairman, NHS Walsall and Carol Southall,  
Patient, NHS Walsall.  08 Ashley House plc Report and accounts 2010
Effective partnering
through a pharmacy joint venture and the 
development of innovative new health centres
Our Health Centre at Wellsbourne, an environmentally advanced scheme,  
was the first to benefit from a Joint Venture Lloydspharmacy.
Case studies
Wellsbourne Health Centre,
Brighton, East Sussex
As part of the redevelopment of the old Wellsbourne School 
site in Whitehawk, Ashley House was tasked with developing 
phase two. 
 
This building provides new premises for two local GP Surgeries, 
a base for District Nurses and dental and podiatry services 
provided by South Downs Health. A pharmacy completes the 
range of services that will be available to the local community.
 
Ashley House worked closely with the Council, PCT and existing 
users of the site (Childrens Centre) to ensure future flexibility. As a 
result Phase three, further community facilities, are currently at the 
design stage. 
 
The innovatively designed building is linked to the existing 
children’s Centre, built as phase one, and incorporates 
sustainable features such as: 
>
 bio-diverse roof 
>
 ground source heat pump
>
 sun pipes to allow natural light and ventilation
The valued contribution of each of the key stakeholders 
involved has helped create a truly community focused  
health centre.
Additionally the Wellsbourne Health Centre is the first 
Ashley House project to benefit from a Joint Venture 
pharmacy, realised through Ashley House’s partnership 
with Lloydspharmacy.
“Having worked with Ashley House on three other 
schemes over the last five years the Wellsbourne 
Health Centre shows how building relationships 
between the public and private sectors delivers 
results that we can be both proud of and confident 
that services to the local community will be  
provided for many years to come.“ 
Ms. Chris Naylor  
Estates Strategy Manager, NHS Brighton and Hove  Report and accounts 2010 Ashley House plc 09
working in
partnership
with 
Brighton and Hove
“This partnership plays very much to the strengths of both Ashley 
House plc and Lloydspharmacy and will provide both companies  
with a long term partner with common objectives of improving the 
nation’s health. The close relationship with Lloydspharmacy will  
allow Ashley House to boost its already significant pipeline by being 
able to tap into the healthcare expertise and local knowledge of  
the pharmacy teams across our network of over 1,650 pharmacies. 
Having a strategic partnership with Ashley House plc, as a  
respected developer in the market, will provide excellent pharmacy 
opportunities for Lloydspharmacy while allowing us to focus on 
 our core business of providing ‘healthcare for life’ to our customers.”
Andrew Willetts 
Finance Director, Lloyds Pharmacy Limited  
Non-Executive Director, Ashley House plc 10 Ashley House plc Report and accounts 2010
Chief Executive’s statement
Current trading is on track so far in the new financial year and 
our teams are all focused on the year ahead.
Jonathan Holmes, Chief Executive
The delays have led us to look at the cost and structure of  
our business. Our market is continuing to evolve and we are 
developing our business accordingly. We continue to reduce 
costs in certain areas of the business to allow us to reinvest in 
growth areas. 
Acquisitions
At the end of November last year we acquired the business  
and assets of Sapphire Primary Care Developments Limited 
(“Sapphire”) from Lloydspharmacy (“Lloyds”) for a total 
consideration of £7.4m. Sapphire was a developer of primary 
care infrastructure and a competitor of Ashley House. The  
team and pipeline has now been fully and successfully 
integrated into the group and several new project wins  
have followed. 
As part of this acquisition, a pharmacy joint venture was created 
with Lloyds which gives Lloyds first option on pharmacies  
in our pipeline in exchange for a 25% profit share in those 
pharmacies. This also gives the Group opportunities for future 
projects from access to the healthcare teams at Lloydspharmacy 
estate of over 1,650 pharmacies. We have three joint venture 
pharmacies open and we hope to grow this number over the 
coming year. 
At the end of the year the group exchanged on a conditional 
deal to acquire the business of Strategic Property Solutions 
Limited (“SPS”), a developer of community mental health and 
associated infrastructure for which Ashley House has seen an 
increasing demand. The deal is conditional on the granting of 
planning permission on the lead scheme which is expected to 
be achieved in the next few weeks. The acquisition brings us 
experience in a differently funded market as well as the skills 
and expertise to develop our offering into a growing sector.
Business review
This has been a difficult year for Ashley House characterised  
by exceptional delays to projects caused by both political 
uncertainty and budget concerns. Further difficulties were 
experienced as a result of an unsolicited bid approach for  
our property partner AH Medical Properties plc. 
These issues have led to delays though not cancellations and 
projects continue to reach financial close. At the end of April 
2010 we were on site with eight schemes with a total value  
of £20m compared to six in April 2009 with a value of £11m. 
Of the five we reported as delayed at the half year, three have 
now reached financial close and are on site. The remaining two 
are expected to achieve financial close in the coming weeks, 
realising c.£1.5m in cash and enabling construction (and the 
associated revenues) to commence. Our project pipeline has 
grown in recent months to £264m (January £238m, May 
£244m), re-enforcing our belief that our business will benefit 
from the continuing shift of care from secondary to community 
and GP-led settings. 
Our asset management contract with AH Medical Properties plc 
(“AHMP”) has driven strong growth for AHMP, with gross 
assets growing 34% in the year to close to £120m and rental 
revenues growing from £6m to £7m. This strong performance 
has, for the first time, triggered an out-performance fee. In 
support of AHMP, we have agreed to take half the performance 
fee in cash and half in AHMP shares. 
As mentioned in our February trading update, AHMP received 
an unsolicited bid approach during the year which resulted in  
a hiatus in our ability to pass on pipeline schemes to them.  
This approach has recently been withdrawn and the immediate 
need for us to harbour assets on our own balance sheet has 
gone. However, we continue to explore the options open to  
us and our property partners to avoid a repeat of this situation 
in future.  Report and accounts 2010 Ashley House plc 11
Staff
Following the acquisition of Sapphire, it was important that  
the business carried out a small reorganisation to ensure the 
synergies of the acquisition were achieved. As a result of this 
there were a number of redundancies and the closure of offices 
in Newcastle, Abergavenny and Worcester. Our new staff from
the acquisition of Sapphire and SPS are already making a 
valuable contribution to the business. The Board’s thanks go to 
all our people who continue to show their professionalism and 
dedication to the business in these changing times.
Outlook
Despite challenging market conditions our pipeline remains 
strong as we continue Ashley House’s evolution into an estates 
partner for both primary and community health and the wider 
public sector.
Jonathan Holmes
Chief Executive 
5 July 2010
Key performance targets
Whilst the business remains profitable, reported profit before 
tax has fallen. Net assets have grown 19% from £38.7m to 
£46.0m following the acquisitions of Sapphire and SPS. In the 
new financial year we expect to get a significant number of 
schemes (including three from the Sapphire pipeline and one 
from SPS) to reach financial close. We also expect to realise the 
profit on the schemes that we were unable to sell to AHMP at 
the end of the financial year. The factors that reduced the profit 
in this financial year should not be repeated next year providing 
more confidence in the profit numbers for the coming year.  
We have agreed a new client side approach to working within 
LIFT with four of our seven LIFT companies including the two 
biggest in our stable. This will transform our revenues to a  
fee based model and will take hard construction out of our 
results. Construction management revenues will remain. These 
agreements will also lead to some protection on the length  
of time it takes us to convert revenues into cash. Profit next 
year will therefore come from the extended traditional or  
3PD pipeline and from LIFT income both from the client side 
approach and by getting schemes past financial close. This  
will be augmented by the asset management income and 
revenues that will start to come through from the pharmacy 
joint venture.
Quality
We were delighted that we have recently achieved ISO 14001 
accreditation in recognition of the effectiveness of our 
Environmental Management System. In addition, one of our 
Harrow LIFT schemes was recognised with an architectural  
and environment award. We have had ‘Investor in People’ 
status for 3 years which has recently been reconfirmed and  
we gained ISO 9001 accreditation for our management system 
last year. These accreditations are important for our clients  
and stakeholders and demonstrate the professionalism across  
the business.
A strong 
forward  
pipeline 12 Ashley House plc Report and accounts 2010
Sustainability
our approach to community healthcare
Protecting our planet, people and profits
ISO 14001 certificate: Presented by BSI
May 2010
Ashley House is aware of its wider 
responsibility to the community.  
Our projects are all designed  
to improve communities with 
environmental impacts very much  
in mind. We strive to ensure our 
relationships are positive and 
constructive, creating partnerships 
with all stakeholders to provide 
improved healthcare delivery.  
We work closely with local Councils 
and their planning departments 
in understanding and conserving 
the interests of local communities. 
Ashley House recognises that its operations can significantly 
impact on the environment. Our Environmental Policy sets  
out our objectives to reduce that impact and is the core 
document in the Ashley House Environmental Management 
System (EMS). We are very pleased that in April of this year  
the EMS was registered by the British Standards Institution  
(BSI) as being compliant with the International Standard ISO 
14001. ISO 14001 sets out the specific requirements that an 
Environmental Management System must meet in order to 
comply with the Standard and in turn ensure the effectiveness 
of the System. The award of ISO 14001 follows our similar 
achievement last year in the Ashley House Management System 
(AHMS) receiving ISO 9001 Registration. The EMS is also an 
integral part of the AHMS.
Robust audited management systems focused on quality and 
environment give our clients and stakeholders confidence in 
Ashley House’s ability to deliver to the highest level.
Pictured above from left: Nigel Croxford, Technical Director,
Michelle Timpson, Customer Services Manager of the BSI Group
and Mark Marston, Marketing Manager of Ashley House
CSR review  Report and accounts 2010 Ashley House plc 13
Contributing to support the care  
of cancer care to patients
Corporate charity fundraising
Our 1st year and looking ahead
Improving the quality of local  
healthcare estates
Winners at the Harrow Architectural  
and Environmental Awards Ceremony
May 2010
Ashley House and Marie Curie Cancer Care launched its 
Corporate Charity Partnership in November 2009. Since that 
time Ashley House and our employees have been helping the 
charity through a programme of company led and staff fund 
raising events. 
One such event has involved seven of our employees 
completing the Three Peaks Challenge. This is a hike, of 26 
miles, incorporating the three highest peaks in the Yorkshire 
Dales. Our people have raised sufficient funds in its first  
year to pay for over 250 hours of care and support from a 
Marie Curie nurse. 
One of Marie Curie’s objectives is to improve referrals from  
GPs and Ashley House is in a great position to help them work 
with our GPs and NHS clients. Whilst the charity has contracts 
with 96% of health trusts across the UK recent research shows 
that many people don’t know if there is a Marie Curie Nursing 
Service available to them locally, and even fewer know how  
to get the support of a Marie Curie Nurse. Working with  
Ashley House, Marie Curie can achieve greater contact and 
involvement with Doctors and PCTs. This co-operation will see 
Fields of Hope being planted at our surgeries, information and 
contacts being available to patients GPs and Nursing staff and 
even space for Marie Curie nurses to provide a support and 
counselling service to patients. 
This represents a fitting reward for the partnership behind the 
Neighbourhood Resource Centre projects, comprising Harrow 
Council, BHH LIFTco and Ashley House. Three individually 
designed buildings in Harrow, of which Byron Park is one,  
were delivered via LIFT for Harrow Council. 
Each centre was designed to provide flexible day support 
services for adults with severe learning disabilities, helping  
them integrate into the local community. Byron Park services 
have links to the local leisure building and the building also has 
facilities for cultural and educational activities, meetings and 
other types of gatherings involving the local community. 
The development has been designed to be energy efficient with 
a range of innovative features. Run in conjunction with Harrow 
Heritage Trust and Harrow Town Council, the biennial scheme 
aims to reward the best-looking developments that make an 
outstanding contribution to their neighbourhood 
Pictured above holding the award certificate from left to right 
are John Graveling, Chairman of BHH LIFTco, Simon Duffy, 
Chief Architect, Ashley House plc, Marilyn Mayhew and 
Josephine Mahaffey of Harrow Town Council, Mark 
Grinnoneau, Chief Executive Officer, BHH LIFTCo and Raj 
Mandalia, Architectural Technologist, Ashley House plc.
Employing more than 2,700 nurses, doctors and other healthcare professionals, 
Marie Curie Cancer Care is the largest provider of hospice beds outside the NHS  
and during this year, 2010, expects to provide care to around 29,000 terminally  
ill patients in the community and in its hospices. 14 Ashley House plc Report and accounts 2010
“Having worked with Ashley House for the past three years  
I can say it has been a fantastic working relationship. The Stanwell 
Health and Community project has been extremely complex with 
a few major issues arising along the way such as GP led health 
centres and Ashley House showed a real willingness to be 
pragmatic to ensure a top class facility is built for the local 
community. Spelthorne Borough Council would certainly wish  
to work with Ashley House again.”
Liz Borthwick 
Assistant Chief Executive 
Spelthorne Borough Council
a working
partnership
with 
Surrey
Case studies
A commitment to partnerships  
that delivers quality results
Stanwell Health and Community Centre demonstrates the power of partnership 
working, with Spelthorne Borough Council, Surrey County Council, NHS Surrey 
and the voluntary sector all involved in making it a reality.  Report and accounts 2010 Ashley House plc 15
Stanwell Health and Community Centre, 
Stanwell, Surrey
The centre will be the new home for St David’s Family Practice 
and teams from Surrey Community Health. It also houses  
the Stanwell library, a community café and a pharmacy. 
Patients will also benefit from the new treatment facilities  
and dedicated space for therapy services and facilities for  
minor surgery. 
 
Building size: 1,500 m
2
 
Project brief: Following a competitive tender Ashley House 
was successfully selected in 2007, as preferred developer,  
to design and build a new Health and Community Centre  
for the residents of Stanwell. Ashley House purchased a 
redundant Community Centre from Spelthorne Borough 
Council upon which to develop the new facility. 
Project solution: Our architects have designed a purpose 
built state of the art Community Centre, from which the 
community will benefit from integrated health and social  
care facilities.
Points of interest: This community care focused project,  
is being led jointly by Spelthorne Borough Council and NHS 
Surrey. The project is the first of several which make up  
the ‘Stanwell New Start’ initiative. Ashley House as project 
manager has undertaken extensive consultation alongside  
the Council and the PCT to ensure the building will serve the 
expanding population of Stanwell and the surrounding area 
well into the future.
“This project shows our long term commitment to provide 
excellent healthcare for our patients.”
Nigel Westbury 
Practice Manager, St David’s Family Practice
“This is great news for patients and all the staff currently 
based at St David’s Family Practice with so much under 
one roof, the new centre is going to be a vibrant 
and exciting development for the community.”
Paul Bennett 
Deputy Chief Executive, NHS Surrey
“This is a great community focused project and it clearly 
demonstrates what can be achieved with strong working 
partnerships in place. We’re delighted construction is now 
underway and look forward to the opening ceremony  
next year.” 
Ian Shrimpton  
Regional Development Manager, Ashley House plc 16 Ashley House plc Report and accounts 2010
Working together
with local stakeholders to meet 
community healthcare needs
A new modern surgery designed to help improve service quality  
and develop the capacity to serve over 8,000 patients.
Photo (left to right):
(Back row) Marc Kerridge, (Ashley House plc), Ian Shrimpton (Ashley House plc), Tim Mander, 
(Team Leader, Property Management and Income Generation, Sedgemoor District Council),  
Alison Lee, (Practice Manager), Dr Andy Soltys, Dr Shona Gilmour-white, Dr Jon Upton, Dr Ananda 
Pal, Alan Kitch (member of the Patient Participation Group – PPG), David Ward (Primary Care 
Commissioning Manger, NHS Somerset) (Front Row) Jean Rawlinson (chair of the PPG), Edwina 
Vickery, (Lead District Nurse) Margaret O’Callaghan, Dianne Mitchell (Member of PPG) and 
Catriona Topliss (Deputy Practice Manager).
Brent House Surgery,  
Bridgwater, Somerset
When completed in early 2011, the surgery will be able to offer patients  
a family friendly service with easy access to a team of highly trained  
health professionals. 
Building size: 1,202 m² 
Description: 4 Partner Practice including pharmacy, owned by the Doctors
Project brief: The practice had outgrown its existing premises and was 
operating from a converted school in the town centre with limited parking. 
Ashley House was appointed to design and build new, modern practice 
premises from which Brent House Surgery could deliver enhanced services  
to its ever expanding patient list. Retaining a town centre presence was  
of the utmost importance for NHS Somerset, as other centrally based 
practices had moved away during recent years. 
Project solution: Two storey, modern, BREEAM ‘Excellent’ premises, 
offering flexible accommodation, expansion space and ample parking  
all within half a mile of the existing premises. Developing close working 
relationships with Local Authorities was key to securing a perfect town 
centre site for the new health centre. It is hoped that this new surgery 
development will be seen as the first important step towards the much 
needed regeneration of the Eastover area. 
“This is a very exciting development for patients and the practice. 
Your family doctor is still the main provider of people’s day  
to day healthcare and it is therefore important that local 
facilities are modern and big enough to meet the ever 
growing health needs and demands of patients.” 
David Slack
Director of Primary Care Services, NHS Somerset
“We have enjoyed working with Brent House 
Surgery, NHS Somerset and Sedgemoor District 
Council for the last three years. Having planned  
and designed the new medical centre we now  
look forward to it being used and enjoyed by  
the local community.” 
Marc Kerridge
Commercial Development Manager,  
Ashley House plc
“As a local councillor for the Eastover Ward it has been  
a pleasure for us to work with Ashley House as the project 
leaders for the new Brent House Surgery. They were able to  
listen to our concerns, meet the residents and deal with all  
aspects of the project without difficulty.”
Cllr Julian Taylor 
Bridgwater Eastover Ward
Case studies  Report and accounts 2010 Ashley House plc 17
“Sedgemoor District Council worked very closely with Ashley  
House over a number of years to identify an appropriate site to 
accommodate a new medical centre for the Brent House Doctors 
Surgery. Once a site was identified the close co-operation between 
the Council and Ashley House helped ensure all the various obstacles 
and challenges that are thrown up by any large development project 
was dealt with professionally and in a spirit of co-operation to ensure 
the development was able to start on site within the agreed timetable. ”
Tim Mander  
Team Leader, Property Management and Income Generation
Sedgemoor District Council
a working
partnership
with 
Somerset 18 Ashley House plc Report and accounts 2010
Board of directors
Executives
Jonathan Holmes
Chief Executive
Aged 42 – prior to joining Ashley House in 1998 he followed a 
career in sales and marketing with an emphasis on setting up 
new ventures. In the 1990s he worked in the City for Thomson 
Financial Services and latterly the capital markets and Eurobond 
regulator ISMA. At Ashley House he is responsible to all 
stakeholders, shareholders, employees, clients and trading 
partners, for ensuring the continued commercial success of  
the business.
Antony Walters
Finance Director
Aged 43 – Antony has a BA in Accounting and qualified as a 
Chartered Accountant in 1992. He gained an Executive MBA 
from Warwick University in 2004. He joined Ashley House  
in February 2010 having held various senior management 
positions within Celesio Group/Lloyds Pharmacy which he 
joined in 1996. Immediately prior to Ashley House, Antony  
was Managing Director of Sapphire Primary Care Developments 
which Ashley House acquired from Lloyds Pharmacy in 
November 2009.
Stephen Minion
Executive Deputy Chairman
Aged 63 – a chartered engineer with a long career in design  
and development of commercial property. Following his  
BSc degree he initially joined the London Borough of Harrow, 
where he gained Chartered Engineer status. He worked for 
George Wimpey & Co where he learnt his main ‘stock in trade’ 
as a property developer before starting his own company in 
1978. In 1991 he co-founded Ashley House where his specialist 
area centres around the overall delivery of the company’s core 
product and the development of new services.
David Hartshorne
Chief Operating Officer
Aged 56 – David has been with Ashley House since November 
2008 and is responsible for the operations of the Company. 
David is a Chartered Civil Engineer and previously spent a 
number of years with John Laing where he established 
ExcellCare as a leading participant within LIFT. His career has 
involved leadership of client organisations participating in PFI 
and PPP infrastructure projects across a wide range of industries 
in the UK and overseas.  Report and accounts 2010 Ashley House plc 19
Board of directors
Non-executives
Andrew Gibson MBE 
(1)(2)(3)
Non-executive director
Aged 59 – his first career was as a high-ranking army officer 
specialising in logistics. From there he went on to become one of 
the top performing chief executives within the NHS gaining the 
coveted three-star rating in every year it was published, initially as 
Chief Executive of City Hospitals Sunderland and latterly as Chief 
Executive of Newcastle PCT before stepping down at the end of 
2005. He now holds a number of posts acting as a consultant to 
both the public and private sectors with approximately half of his 
time spent with Ashley House, which he joined in January 2006.
Jake Arnold-Forster
 (1)
Non-executive director
Aged 46 – Jake is an independent consultant to NHS 
organisations, local authorities, UK and International companies 
and investor in, a number of companies supplying products and 
services to the NHS. He is chairman of health marketing company 
Innovation 1st and clinical database company, Clinical Network 
Systems. He is the former CEO of Dr Foster Intelligence, a 
commercial provider of healthcare information. 
Andrew Willetts 
(3)
Non-executive director
Aged 47 – Andrew graduated from Keble College, Oxford  
in 1985 with a degree in Modern History before going on  
to qualify as a chartered accountant with what is now 
PricewaterhouseCoopers in 1991. Since then he has held  
senior financial roles in a number of companies in the retail and 
wholesale sectors, including Waterstones Booksellers, and most 
recently as Director of Shared Services at Hagemeyer (now Rexel 
SA). He joined Lloyds Pharmacy in July 2003 becoming Finance 
Director in 2007. He is also a director of the trustee companies  
for Admenta UK plc pension schemes and had main board 
responsibility for Sapphire Primary Care Developments until  
its sale to Ashley House plc.
John Coghlan 
(2)(3)
Non-executive director
Aged 52 – John is Chairman of Inchcape Shipping Services and a 
Non-Executive Director of DX Group, both private equity owned 
businesses. He is a Director of Yell plc, where he is the Chairman 
of the Audit Committee. John is former Deputy Chief Executive 
and Group Finance Director of Exel plc, where he spent eleven 
years up to the time of its takeover by Deutsche Post in 2006. 
Prior to joining the Board of Exel/Ocean Group plc in 1995,  
he spent seven years with Tomkins plc in various financial roles, 
having joined them after eight years with Arthur Andersen,  
where he qualified as a Chartered Accountant.
Sir William Wells 
(1)(2)
Non-executive Chairman
Aged 70 – Sir William brings a wealth of experience to the board 
having held numerous positions in both the public and private 
sectors in a career that has spanned more than 40 years. From 
1964 Sir William worked as a Property Consultant becoming 
Partner at Chesterton and Sons in 1966, Managing Partner in 
1984 and Chairman of the business following incorporation in 
1991 until his retirement in 1997. His board level experience 
commenced in 1972 and since that time he has held positions  
in many well known organisations. Sir William began a parallel 
career in the public sector in 1968 as a Governor of the Royal  
Free Hospital in Grays Inn Road and has continued unbroken in 
the NHS to date, together with other posts in health, education 
and science including: Chairman of the NHS Appointments 
Commission (2001-2007); Chairman of the Commercial Advisory 
Board to the Department of Health (2003-2007); Member of the 
General Council of the King’s Fund (1995-to date).
(1) Appointments committee
(2) Remuneration Committee
(3) Audit Committee 20 Ashley House plc Report and accounts 2010
The directors present their report together with the audited financial statements for the year ended 30 April 2010.
Principal activity
The principal activity of the Group is the supply of project management, consultancy services and asset management, primarily allied  
to the provision of medical facilities delivering NHS-led primary care. 
Business review
The consolidated statement of comprehensive income for the year is set out on page 22. A review of developments affecting the  
Group during the year and of its prospects for the future appears in the Chairman’s statement and the Chief Executive’s statement.
The Group is required by Companies Act 2006 to set out in this report a fair review of the business of the Group during the financial 
year ended 30 April 2010 and the position of the Group at the end of the year along with principal risks and uncertainties facing the 
Group. This information is included within the Chairman and Chief Executive’s statements on pages 4 and 10. The principal risk for the 
Group remains the possibility of reduced commissioning of new Primary Care premises by the NHS. The Group’s ability to continue to 
deliver potential projects within cost parameters remains an ongoing operational risk in both NHS LIFT and third party developer (3PD) 
markets since failure to do this may result in the cancellation or delay of projects and the associated fees and revenues for the Group.
An interim dividend of 1.0 pence per share was paid on 19 March 2010 (no interim dividend was paid in the year to April 2009). The 
directors propose a final dividend of 3.0 pence per share amounting to £1,671,000 (4.0 pence per share on 16 October 2009, £1,884,000).
Directors
The membership of the board during the year is set out below. Except as noted, the directors served throughout the year.
Sir W Wells  (Non-executive Chairman)
S G Minion
J Holmes
B L Walker  (Resigned 22 February 2010)
A J Walters  (Appointed 23 November 2009)
D J M Hartshorne  (Appointed 22 February 2010)
J Arnold-Forster  (Non-executive director)
J Coghlan  (Non-executive director)
C Cook  (Non-executive director)   (Resigned 1 June 2009)
G Frost  (Non-executive director)   (Resigned 1 June 2009)
A F Gibson  (Non-executive director)
A J Willetts  (Non-executive director)    (Appointed 23 November 2009)
S W Gray  (Non-executive director alternate to A J Willetts)  (Appointed 1 June 2010)
D J M Hartshorne, A J Walters, A J Willetts being newly appointed offer themselves for election and Sir W Wells, J Holmes and 
J Arnold-Forster retire by rotation and being eligible offer themselves for re-election.
Directors’ and officers’ liability insurance
The Company has, as permitted by section 236 of the Companies Act 2006, maintained insurance cover on behalf of the Directors and 
Company Secretary indemnifying them against certain liabilities which may be incurred by them in relation to the company.
Supplier payment policy
The Group and Company policy is to settle terms of payment with suppliers when agreeing the terms of each transaction, to ensure  
that suppliers are made aware of the terms of payment, and to abide by the terms of payment. Trade payables at the year end amount 
to 40 days (2009: 24) of average supplies for the year.
Employee involvement
The Group keeps its employees informed of matters affecting them as employees through regular briefings. Ashley House plc has been 
accredited Investors In People status.
Disabled persons
It is the Group’s policy to give full and fair consideration to applications for employment made by disabled persons having regard to their 
aptitudes and abilities. The Group also uses reasonable endeavours to provide continuing employment for employees who are disabled 
whilst the Group employs them and, where appropriate, provides facilities for training and retraining for career development and promotion.
Financial risk management objectives and policies
The Group is exposed to a variety of financial risks which result from both its operating and investing activities. The board is responsible 
for co-ordinating the Group’s risk management and focuses on actively securing the Group’s short to medium term cash flows. Long 
term financial investments are managed to generate lasting returns.
Report of the directors  Report and accounts 2010 Ashley House plc 21
The Group does not actively engage in the trading of financial assets and has no financial derivatives. The most significant financial risks  
to which the Group is exposed are described below:
Credit risk
The Group’s principal financial assets are cash, trade receivables and amounts recoverable on contracts. The amount of trade receivables 
presented in the balance sheet is net of any allowance for doubtful trade receivables, estimated by the directors. Amounts recoverable on 
contracts are presented net of provisions deemed necessary by the directors. The Group’s largest customers in the year were AH Medical 
Properties plc’s subsidiary, Medical Properties Limited and Soho Health Plaza Limited.
The Group has adopted a strict credit vetting policy based on track record payment history and externally available credit data.
Interest rate risk
The Group finances its operations principally through retained profits and has relatively low borrowings. The Group secured a £2,000,000 
revolving credit facility during the year from its bankers, Lloyds TSB Banking Group. The loan interest is charged at a variable 2.75% over  
three month Libor. At 30 April 2010 the Group had further borrowings of £1,330,000 relating to the debt held within the joint venture 
company, AH Scarborough Health Park Limited. Loan interest is variable at 2.75% over three month Libor and exposes the Group to any 
increase in the three month Libor. The Group’s share of loans and cash deposits in joint venture NHS LIFT companies means that any 
material rise in interest rates would be broadly neutral between interest charged and received. 
The Group operates a policy of seeking to optimise deposit interest earned, paying due regard to credit risk and ensuring the business  
has sufficient available cash to operate effectively.
Liquidity risk
The Group seeks to manage risks to ensure sufficient liquidity is available to meet foreseeable needs by investing cash assets safely 
and profitably. The Group’s revenue recognition policy set out in the notes to the accounts is central to the way the Group values the  
work it has carried out in each financial year. 
Amounts recoverable on contracts relate to projects that are largely ongoing as at 30 April 2010. A substantial proportion of the amounts 
have yet to be invoiced, however management believes that the balances are ultimately recoverable based on a review of past payment 
history and the current financial status of the customers, which are typically NHS bodies, NHS LIFT companies, which are joint ventures 
between the company and the NHS, or AH Medical Properties plc, which is well known to the Group.
Going concern
After making enquiries and reviewing forecasts, the directors have, at the time of approving the financial statements, concluded that 
it is appropriate to continue to adopt the going concern basis in preparing these financial statements.
Cash flows are derived from construction and asset management services as well as project specific design and development fees.  
The pipeline of future projects is monitored constantly and necessary resource is matched to the requirements and with reference  
to the degree of progress and certainty of the individual projects.
Application of principles of good governance
Corporate governance
The board supports the principles of good governance. The Group is committed to high standards of corporate governance and has 
adopted procedures to institute good governance insofar as they are practical and appropriate for a business of this size at this stage 
in its development. The board has a remuneration committee, an audit committee and an appointments committee, in each case 
comprising a majority of non-executive directors and chaired by a non-executive director.
Board effectiveness
The Group supports the concept of an effective board, leading and controlling the Group. The board is responsible for approving Group 
policy and strategy. It meets regularly and has a schedule of matters specifically reserved to it for decision. Management supplies the 
board with appropriate and timely information and the directors are free to seek any further information that they consider necessary.  
All directors have access to advice from the Company Secretary and independent professionals at the Group’s expense. 
Auditor
Grant Thornton UK LLP has expressed willingness to continue in office. In accordance with section 489(4) of the Companies Act 2006  
a resolution to reappoint Grant Thornton UK LLP will be proposed at the Annual General Meeting.
On behalf of the Board
Jonathan Holmes
Chief Executive
5 July 2010 22 Ashley House plc Report and accounts 2010
Consolidated statement of comprehensive income
for the year ended 30 April 2010
      2010 2009
     Note £000 £000
Revenue     1 24,876 23,834
   
Cost of sales      (16,651) (12,575)
   
Gross profit      8,225 1 1,259
   
Administrative expenses      (5,632) (5,726)
Depreciation and impairment      (107) (1 14)
Exceptional items     5 (733) –
   
Operating expenses      (6,472) (5,840)
   
Operating profit     2 1,753 5,419
   
Interest payable      (82) –
   
Investment income     4 65 107
   
Profit before taxation      1,736 5,526
   
Tax expense     6 (486) (1,361)
Profit after tax for the year attributable to equity holders of the parent    1,250 4,165
   
Other comprehensive income/(expense):   
Fair value movement on available for sale investments   
current year gains/(losses)      870 (584)
Total comprehensive income for the year attributable to equity shareholders of the parent  2,120 3,581
   
Basic earnings per share      7 2.45p 10.01p
   
Diluted earnings per share      7 2.41p 9.65p
All of the activities of the Group are classed as continuing.
The accompanying accounting policies and notes form an integral part of these financial statements.  Report and accounts 2010 Ashley House plc 23
The accompanying accounting policies and notes form an integral part of these financial statements.
      2010 2009
     Note £000 £000
Non-current assets   
Goodwill     8 1,289 270
Other intangible     9 30,018 24,800
Property, plant and equipment     11 254 213
Available for sale investments     12 1,608 738
Deferred tax asset     22 65 210
      33,234 26,231
Current assets   
Work in progress     14 2,818 1,361
Trade and other receivables     15 24,892 20,905
Cash and cash equivalents     16 1,010 1,187
      28,720 23,453
   
Total assets      61,954 49,684
   
Current liabilities   
Trade and other payables     17 (9,904) (7,664)
Bank borrowing     18 (1,692) (2,127)
Current income tax     19 (477) (1,219)
      (12,073) (1 1,010)
   
Net current assets      16,647 12,443
   
Non-current liabilities   
Amounts falling due after more than one year     20 (2,750) –
Deferred tax liabilities     22 (1,094) –
   
Total liabilities      (15,917) (1 1,010)
Net assets      46,037 38,674
   
Equity   
Share capital     23 557 470
Share premium     24 33,523 31,627
Merger relief reserve     25 4,395 –
Other reserve      1,400 –
Share-based payments reserve      496 608
Retained earnings      5,666 5,969
Total equity      46,037 38,674
The financial statements were approved by the board of directors and authorised for issue on 5 July 2010.
They were signed on its behalf by:
Jonathan Holmes
Chief Executive
Company number: 2563627
Consolidated balance sheet 
for the year ended 30 April 2010 24 Ashley House plc Report and accounts 2010
     Share-
   Merger  based  
 Share Share  relief Other  payment Retained 
 capital premium reserve reserve reserve earnings Total
 £000 £000 £000 £000 £000 £000 £000
At 1 May 2009 470 31,627 – – 608 5,969 38,674
       
Issue of share capital 87 1,896 4,395 – – – 6,378
Deferred consideration-equity settled – – – 1,400 – – 1,400
Movement on deferred tax – – – – (145) – (145)
Dividends – – – – – (2,423) (2,423)
Share-based payment charge – – – – 33 – 33
Transactions with owners 87 1,896 4,395 1,400 (112) (2,423) 5,243
       
Profit for the year – – – – – 1,250 1,250
Other comprehensive income:       
Fair value movement on available for sale  
investments current year gains – – – – – 870 870
Total comprehensive income for the year  
attributable to equity holders of the parent – – – – – 2,120 2,120
At 30 April 2010 557 33,523 4,395 1,400 496 5,666 46,037
       
       
     Share-
   Merger  based  
 Share Share  relief Other  payment Retained 
 capital premium reserve reserve reserve earnings Total
 £000 £000 £000 £000 £000 £000 £000
At 1 May 2008 275 8,040 – – 2,221 2,910 13,446
       
Issue of share capital 195 23,587 – – – – 23,782
Transfer between reserves on  
conversion of warrants – – – – (1,085) 1,085 –
Movement on deferred tax – – – – (617) – (617)
Dividends – – –  – (1,607) (1,607)
Share-based payment charge – – – – 89 – 89
Transactions with owners 195 23,587 – – (1,613) (522) 21,647
       
Profit for the year – – – – – 4,165 4,165
Other comprehensive income:       
Fair value movement on available for sale  
investments current year losses – – – – – (584) (584)
Total comprehensive income for the year  
attributable to equity holders of the parent – – – – – 3,581 3,581
At 30 April 2009 470 31,627 – – 608 5,969 38,674
Consolidated statement of changes in equity
for the year ended 30 April 2010
The accompanying accounting policies and notes form an integral part of these financial statements.  Report and accounts 2010 Ashley House plc 25
The accompanying accounting policies and notes form an integral part of these financial statements.
      2010 2009
      £000 £000
Operating activities  
Profit for the year before taxation      1,736 5,526
  
Adjustments for:  
Depreciation and impairment      377 1 14
Share-based payment charge      33 89
Dividend received      (65) (44)
Interest paid      82 –
Interest income      – (63)
Operating cash flows before movements in working capital     2,163 5,622
  
Increase in work in progress      (819) (102)
Increase in trade and other receivables      (3,987) (8,191)
Increase in trade and other payables      737 920
Cash used by operations      (1,906) (1,751)
  
Income taxes paid      (1,228) (1,395)
Interest paid      (82) –
Net cash used in operating activities      (3,216) (3,146)
  
Investing activities  
Purchase of property, plant and equipment      (122) (19)
Acquisition of subsidiaries (net of acquired cash)      390 –
Acquisition of interest in jointly controlled entities net of cash     – (12,824)
Dividend received      65 44
Interest received      – 63
Net cash used in investing activities      333 (12,736)
  
Financing activities  
Increase in borrowings      1,565 25
Proceeds from disposal of available for sale financial assets     1,636 –
Proceeds from issuance of ordinary share capital (net of costs)     1,928 11,782
Dividends paid to company’s shareholders      (2,423) (1,607)
Net cash from financing activities      2,706 10,200
  
Net decrease in cash and cash equivalents      (177) (5,682)
  
Cash and cash equivalents at beginning of the year     1,187 6,869
Cash and cash equivalents at the end of the year      1,010 1,187
Consolidated statement of cash flows 
for the year ended 30 April 2010 26 Ashley House plc Report and accounts 2010
Principal accounting policies
Basis of accounting
Ashley House plc is a company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered  
office is given on the company information page 60. The nature of the Group’s operations and its principal activities are set out in the
Chief Executive’s statement on page 10.
The Group’s financial statements consolidate those of the Company, its subsidiaries and its joint ventures (together referred to as the Group).
Statement of compliance
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in the Group’s 
financial information, except for the adoption of IAS 1 Presentation of financial statements (Revised 2007), IFRS 8 Operating segments  
and Improvements to IFRSs. These are explained further below. The format adopted in the financial information has been amended from 
previously published financial statements to ensure compliance with IAS 1 and IFRS 8.
Basis of preparation
The financial statements have been prepared on the going concern basis, under the historical cost convention, except for the revaluation 
of certain financial instruments, which are carried at fair value.
The board regularly reviews the Group’s resources to ensure they are sufficient to continue trading for the foreseeable future. It is 
therefore considered appropriate to use the going concern basis to compile these financial statements. The main requirement is for 
sufficient financial resources to maintain the overhead required to fulfil the pipeline of business. The Group finances itself from cash 
resources and has a revolving credit facility in place from Lloyds TSB Banking Group.
These financial statements are presented in pounds sterling because that is the functional currency of the parent company and the 
presentational currency of the Group.
The adoption of IAS 1 (Revised 2007) does not affect the financial position or profits of the Group but gives rise to additional disclosures. 
The measurement and recognition of the Group’s assets, liabilities, income and expenses is unchanged. IAS 1 (Revised 2007) affects the 
presentation of owner changes in equity and introduces a ‘Statement of comprehensive income’. IAS 1 (Revised 2007) also requires 
presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances. The adoption  
of this standard has resulted in no change to the previously reported accounts and so no comparative balance sheet has been provided.
The adoption of IFRS 8 has not changed the segments that are disclosed in the financial information as the segmental information 
previously disclosed complies with IFRS 8. Under IFRS 8 the accounting policy for identifying segments is now based on the internal 
management reporting information that is regularly reviewed by the chief operating decision maker.
Accounting estimates and judgements 
The preparation of financial statements in conforming with adopted IFRS requires management to make judgements, estimates and 
assumptions that affect the application of policies and reported amounts of assets, liabilities, income, expenses and contingent liabilities.
Information about the significant estimates, judgements and assumptions that have the most significant effect on the recognition and 
measurement of assets, liabilities, income and expenses is discussed below.
Estimates
Fair value of acquisitions
On the acquisition of a business or an interest in a joint venture or associate, fair values are attributed to the identifiable assets, liabilities 
and contingent liabilities acquired, reflecting conditions at the date of acquisition. Adjustments to fair values include those made to bring 
accounting policies into line with those of the Group if required. 
Provisional fair values subsequently finalised are adjusted by restatement of the comparative period in which the acquisition occurred.
Impairment
Impairment of goodwill and intangibles is based on management’s expectation for the related asset to continue to be revenue generating 
in the future. An impairment loss is recognised for the amount by which an asset’s or cash generating unit’s carrying amount exceeds its 
recoverable amount. To determine the recoverable amount, management estimates expected future cash flows from each asset or 
cash-generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. 
In the process of measuring expected future cash flows management makes assumptions about future gross profits. These assumptions 
relate to future events and circumstances. The actual results may vary, and may cause significant adjustments to the Group’s assets within 
the next financial year. In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk.
Revenue recognition
Revenue recognised from construction and design and development contracts reflects management’s best estimate about each contract’s 
outcome and stage of completion. The Group’s management assesses the profitability of ongoing contracts at least monthly. For more 
complex contracts in particular, costs to complete and contract profitability are subject to significant estimation uncertainty. The Group’s 
revenue recognition policy is given below.  Report and accounts 2010 Ashley House plc 27
Taxation
To complete provisions for taxation, estimates have been applied. These estimates involve assessing the probability that deferred tax  
assets resulting from deductible temporary differences and the tax losses can be utilised to offset taxable income (notes 6, 19 and 22).
Share-based payments
The fair values of share-based payments outstanding have been estimated using the basic Hull-White model and are based on an 
estimated expected turnover rate of employees as well as future share price volatility, dividend yield and risk free rate of return.
Judgements
Revenue recognition
The recognition of design and development revenue requires management to exercise its judgement in assessing how complete contracts 
are as the Group’s policy is not to recognise design and development revenue until the design or development element of the contract is 
at least 50% complete, at which stage the outcome of this stage of completion of the contract and the timing of cashflows can be more 
accurately determined. The board regularly reviews the recoverability of accrued and invoiced income and will provide against any 
amounts that cannot be reasonably recovered.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company 
(its subsidiaries) made up to 30 April each year. 
Intra-group transactions, balances, income and expenses are eliminated fully on consolidation. Intra-group losses are eliminated except  
to the extent that they provide evidence of impairment of the asset transferred. Control is achieved where the Group has the power, to 
directly or indirectly govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until 
the date that control ceases. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure 
consistency with the accounting policies adopted by the Group. Consolidated companies with non co-terminus year ends are consolidated 
based upon monthly management accounts. Where necessary, adjustments are made to the financial statements of subsidiaries to bring 
the accounting policies used into line with those used by the Group.
Business combinations are dealt with by the purchase method. On acquisition, the assets and liabilities and contingent liabilities of a 
subsidiary are measured at the fair values at the date of acquisition. On initial recognition any excess of the cost of acquisition over the fair 
values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the 
identifiable net assets acquired (i.e. discount on acquisition) is credited to profit or loss in the period of acquisition.
Investment in joint ventures
Investments in joint ventures are carried in the consolidated balance sheet at the Group’s share of their net assets at the date of acquisition 
and of their post-acquisition retained profits or losses using the proportionate consolidation method together with any goodwill arising  
on the acquisition, net of any impairment.
The statement of comprehensive income also shows the Group’s share of the joint venture’s revenue and the balance sheet shows the 
Group’s proportion of the gross assets and liabilities of the joint ventures.
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of services in the ordinary course of the Group’s 
activities. Revenue is shown, net of value-added tax, rebates and discounts and after elimination of sales within the Group. Revenue from 
long term contracts is detailed below.
Construction contracts 
Where the outcome of a construction contract can be reliably estimated, revenue and costs are recognised by reference to the stage  
of completion of the contract activity at the balance sheet date.
This is normally assessed by the Group’s management by taking into consideration all the information at the balance sheet date. The 
Group’s construction contracts usually define milestone payments for the project work to be carried out. The maximum amount of 
revenue to be recognised for each milestone is determined by estimating relative contract fair values of each project phase. Variations  
in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract  
costs incurred and where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which  
they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an 
expense immediately. 28 Ashley House plc Report and accounts 2010
Principal accounting policies
continued
Design fees and development fees
Where the outcome of a design and development contract can be estimated reliably and it is probable that the contract will be  
profitable, revenue and cost are recognised over the period of the contract. The Group does not consider that the outcome of a design  
or development contract can be reliably determined until it is at least 50% complete. Where it is probable that total costs will exceed  
total contract revenue, the expected loss is recognised as an expense immediately. In situations where the outcome cannot be estimated 
reliably, revenue is recognised only to the extent of costs incurred that are recoverable.
The Group uses the ‘percentage of completion’ method for design and development contracts to determine the appropriate amount  
to recognise in a given period. The stage of completion is measured by reference to the actual contract costs incurred up to the balance 
sheet date as a percentage of the total estimated costs for each contract. Provision is made for losses incurred or foreseen in bringing  
the contract to completion as soon as they become apparent. 
Asset management
Asset management fees relate to the provision of services to manage the property assets of AH Medical Properties plc and AH 
Scarborough Health Park Limited. Income is recognised evenly throughout the period based upon the value of the managed assets  
in accordance with the asset management agreement.
The Group and Company have a performance linked management agreement with AH Medical Properties plc. Due to a substantial 
increase in AH Medical Properties plc share price the Group and Company benefited from an out-performance fee in addition to its 
standard asset management fee arrangements.
Exceptional items
Exceptional items are defined as items of income and expenditure which are material and unusual in nature and which are considered  
to be of such significance that they require separate disclosure on the face of the income statement in accordance with IAS 1 (Revised 2007).
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the 
identifiable asset and liabilities of a subsidiary at the date of acquisition. Goodwill is recognised as an asset and reviewed for impairment 
on indication of impairment and at least annually. Any impairment is recognised immediately in the Statement of comprehensive income 
and is not subsequently reversed. Goodwill arising on acquisitions before the date of transition to IFRS has been retained at the previous 
UK GAAP carrying value, subject to being tested for impairment at that date and at least annually thereafter. On disposal of a subsidiary, 
the attributable net book value of goodwill is included in the determination of the profit or loss on disposal.
Intangibles
The book value of intangible assets which relate to a future pipeline of contracts with regards to NHS LIFT companies, Sapphire Primary 
Care Developments Limited, and Strategic Property Solutions is reviewed at least annually. Estimates and judgements are reviewed every 
year with reference to anticipated future revenues, from the pipeline and the length of contracts remaining in the case of holdings in NHS 
LIFT companies, appropriate discount rates for future revenue streams. If there is no impairment in the value calculated and in the board’s 
view no likely impairment in the immediate future, there is no write-down of the asset.
Property, plant and equipment
Property, plant and equipment is stated at cost, net of depreciation and any provision for impairment. Depreciation is calculated to write 
down the cost less estimated residual value of all property, plant and equipment, other than freehold land, on the straight line basis over 
their expected useful economic lives. The periods generally applicable are:
• office equipment, furniture and fixtures 4 years
• motor vehicles 4 years
• mobile surgeries 4 years
The residual value and the useful life of each asset are reviewed at least at each financial year end and, if expectations differ from previous 
estimates, the change(s) are accounted for as a change in an accounting estimate.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the 
carrying amount of the asset and is recognised in income.  Report and accounts 2010 Ashley House plc 29
Leased assets
Leases where the third party lessor retains substantially all the risks and rewards of ownership are classified as operating leases.
Rentals payable under operating leases are charged to the statement of comprehensive income on a straight-line basis over the period  
of the lease. Associated costs, such as maintenance and insurance are expensed as incurred. Lease incentives received are recognised  
in the statement of comprehensive income on a straight-line basis as an integral part of the total lease expense.
Impairment
At each balance sheet date the Group reviews the carrying amounts of its assets to determine whether there is any indication that those 
assets have suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine 
the extent of the impairment loss (if any). 
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows 
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money 
and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount 
of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset (or cash-generating unit) is estimated  
to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.  
An impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised 
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have 
been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment 
loss is recognised as income immediately, with the exception of goodwill where impairment of goodwill cannot be reversed. Goodwill  
and intangible assets with an indefinite useful life are tested for impairment at least annually.
Work in progress
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal levels of activity. Costs associated with 
construction contracts are included in inventories to the extent that they cannot be matched with contract work recognised in revenue. 
Long-term contract balances included in inventories are stated at cost, after provision has been made for any foreseeable losses and the 
deduction of applicable payments on account. No element of profit is included in the carrying value of work in progress. Full provision is 
made for losses on all contracts in the year in which the loss is first foreseen.
Financial instruments
Financial assets and liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual provisions 
of the instrument. Financial assets are recognised initially at fair value plus transaction costs. Financial liabilities are recorded initially at fair 
value net of transaction costs.
Trade and other receivables
Trade and other receivables do not carry any interest and are stated at amortised cost using the effective interest method, less provision 
for impairment. Impairment of trade and other receivables are recorded when there are indicators that suggest that the debts are not  
fully recoverable, or the fair value is impaired at the balance sheet date.
Investments
Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms 
require delivery of the investment within the timeframe established by the market concerned, and are initially measured at cost, including 
transaction costs. Investments are classified as available-for-sale and are measured at subsequent reporting dates at fair value. 
For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in other comprehensive 
income, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised  
in other comprehensive income is included in the net profit or loss for the period.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.  
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. 30 Ashley House plc Report and accounts 2010
Principal accounting policies
continued
Trade and other payables
Trade and other payables are not interest bearing and are recognised initially at fair value and thereafter at amortised cost using the 
effective interest method.
Equity instruments 
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
Interest-bearing borrowings
Interest-bearing borrowings are initially recognised at fair value less attributable costs. In subsequent years, the carrying amount is stated 
at amortised cost obtained using the effective interest rate method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. 
Income taxes
The charge for current income tax is based on the results for the period as adjusted for items that are non-assessable or disallowed. 
It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred income tax is the income tax expected to be payable or recoverable on differences between the carrying amounts of assets and 
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using 
the balance sheet liability method. Deferred income tax is provided in full and is recognised on temporary differences between the 
carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable 
profit. Deferred income tax liabilities are generally recognised on all taxable temporary differences and deferred tax assets are recognised 
to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such 
assets and liabilities are not recognised if the temporary difference arises from goodwill (or any discount on acquisition) or from the initial 
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the 
accounting profit. 
Deferred income tax is measured on an undiscounted basis at the tax rates that are expected to apply in the period when the liability is 
settled or the asset is realised, based on tax rates and laws enacted or substantively enacted at the balance sheet date. Deferred income 
tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, 
in which case the deferred tax is also dealt with other comprehensive income. Deferred income tax liabilities are recognised on taxable 
temporary differences arising on investments in subsidiaries, except where the Group is able to control the reversal of the temporary 
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and 
liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current  
tax assets and liabilities on a net basis.
Dividends
Dividends are recognised as a liability in the period in which they are declared.
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief decision maker. The chief 
decision maker has been identified as the board, at which level strategic decisions are made. IFRS 8 ‘Operating Segments’ has been 
adopted by the group and applied retrospectively. 
Equity and dividend payments
Share capital is determined using the nominal value of shares that have been issued. Share premium includes any premiums received on 
the initial issuing of share capital. Any transaction costs associated with the issuing of shares are deducted from additional paid-in capital, 
net of any related income tax benefits. Equity settled share-based employee remuneration is credited to the share-based payments reserve 
until related stock options are exercised. The share-based payment reserve is the reserve for the cumulative IFRS 2 adjustments and related 
deferred tax. The share premium reserve is the surplus of the amount paid over the nominal value of new shares issued.
Share-based payments
The Group issues share options to its employees. The Group has applied the requirements of IFRS 2 Share-based Payments. In accordance 
with the transitional provisions, IFRS 2 has been applied to all grants of equity instruments after 7 November 2002 that were unvested as 
of 1 May 2006. The Group issues equity-settled share-based payments to employees. Equity-settled share-based payments are measured 
at fair value at the date of grant. Options and warrants are valued using the basic Hull-White model. The fair value determined at the 
grant date of the equity-settled, share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s 
estimate of shares that will eventually vest, updated at each balance sheet date.  Report and accounts 2010 Ashley House plc 31
Merger relief reserve
Merger relief is relief from setting up a share premium account, when shares are issued as part or all of the consideration for acquiring a 
subsidiary. Under s612 CA 2006 the conditions for merger relief are: 
• Equity shares are issued as part of an acquisition arrangement
• The issuing company has secured at least 90% equity holding in the counterparty
• Where the acquired company has more than one class of equity shares, the 90% condition must be met for each type of equity shares
This relief has been applied to the acquisition of Sapphire Primary Care Developments Limited.
Other reserve
The company entered into a contract to purchase the trading assets and liabilities of a company called Strategic Property Solutions Limited 
(SPS) during the year. The form of consideration agreed was 2.3 million Ashley House plc shares at a share price that is contingent on the 
date that a set of contractual requirements had been fulfilled. These requirements are yet to be fulfilled. 
Short-term employee benefit costs
The undiscounted amount of short-term benefits attributable to services that have been rendered in the period are recognised as an 
expense, unless specifically required or permitted within the scope of IFRS reporting to be included in the cost of an asset. Any difference 
between the amount of cost recognised and cash payments made is treated as a liability or prepayment as appropriate.
Standards and interpretations not yet applied
New standards and interpretations, currently in issue but not effective for accounting periods commencing on 1 January 2010 are:
• IFRS 9 Financial Instruments (effective 1 January 2013)
• IAS 24 (Revised 2009) Related Party Disclosures (effective 1 January 2011)
• Amendment to IAS32 Classification of Rights Issues (effective 1 February 2010)
• IFRS 19 Extinguishing Financial Liabilities with Equity Instruments (effective 1 July 2010)
• Prepayments of a minimum Funding Requirement – Amendments to IFRIC 14 (effective 1 January 2011)
• Improvements to IFRS issued May 2010 (some changes effective 1 July 2010, others effective 1 January 2011)
The introduction of these standards and interpretations is not expected to have a material effect on the financial statements.
  32 Ashley House plc Report and accounts 2010
Notes to the financial statements
for the year ended 30 April 2010
1 Revenue and business segments 
The Group operates entirely in design and construction and management services in the United Kingdom. 
Business segments 
These divisions are the basis on which the Group reports its primary segment information. 
Principal activities are as follows:
• Design & Construction
• Management Services
Segment reporting is presented in respect of the Group’s business and geographical segments. The reporting is based on the Group’s 
management and internal reporting structure. Segment results, assets and liabilities include items directly attributable to a segment as  
well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and expenses, cash, 
borrowings, and current and deferred tax balances. 
Segment information about these businesses is presented below.
     Design &  Management 
     Construction Services Consolidated
2010     £000 £000 £000
Revenue   
Total revenue     18,108 6,768 24,876
   
There are no inter-segment sales, so all revenue is from external customers.   
Result   
Segment result     4,100 4,125 8,225
   
Unallocated corporate expenses       (5,632)
Unallocated depreciation expense       (107)
Profit from operations       2,486
Interest payable       (82)
Investment income       65
Profit before exceptional item and tax expense       2,469
Exceptional items       (733)
Profit before tax expense       1,736
Tax expense       (486)
Profit after tax expense       1,250
     Design &  Management 
     Construction Services Consolidated
Other information     £000 £000 £000
Balance sheet   
Assets   
Segment assets     21,653 2,826 24,479
   
Corporate assets     – – 37,475
Consolidated total assets     21,653 2,826 61,954
   
Liabilities   
Segment liabilities     (7,608) (339) (7,947)
   
Unallocated corporate liabilities     –  – (7,970)
Consolidated total liabilities     (7,608) (339) (15,917)
   
   Report and accounts 2010 Ashley House plc 33
1 Revenue and business segments (continued)
     Design &  Management 
     Construction Services Consolidated
2009     £000 £000 £000
Revenue   
Total revenue     18,517 5,317 23,834
There are no inter-segment sales, so all revenue is from external customers.   
   
Result   
Segment result     7,125 4,134 11,259
   
Unallocated corporate expenses       (5,840)
   
Profit from operations       5,419
Investment income       107
       5,526
Profit before tax expense   
   
Tax expense       (1,361)
Profit after tax expense       4,165
   
     Design &  Management 
     Construction Services Consolidated
Other information     £000 £000 £000
Balance sheet   
Assets   
Segment assets     11,623 2,795 14,418
   
Corporate assets     – – 35,266
Consolidated total assets     11,623 2,795 49,684
   
Liabilities   
Segment liabilities     (6,783) (185) (6,968)
   
Corporate liabilities     –  – (4,042)
Consolidated total liabilities     (6,783) (185) (11,010)
During the year the Group’s main customers were AH Medical Properties plc group and Soho Health Plaza Limited. During the year  
the Group made total sales to AH Medical Properties plc group of £9,728,000 (2009: £4,333,000) with £426,000 due at the year end 
(2009: £3,000). During the year the Group made total sales to Soho Health Plaza Limited of £3,226,000 (2009: £5,162,000) with 
£12,000 due at the year end (2009: £478,000).
Supplies are made to AH Medical Properties plc group relating to the design and construction of medical centres. In every case, the rent 
for the building which drives the value of the scheme is set by the District Valuer acting for the Primary Care Trust (NHS). Transactions 
between the Group and AH Medical Properties plc are entered into on the basis of market equivalent pricing and are ratified by the 
independent non-executive directors of AH Medical Properties plc, who are not connected to the Group. Supplies are also made relating 
to the management of the property portfolio.
  34 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
2 Operating profit
      2010 2009
      £000 £000
Operating profit is arrived at after charging:  
  
Rental of premises – operating leases      348 267
Rental of motor vehicles – operating leases      39 28
Staff costs (see note 3)      4,401 3,377
Auditor’s remuneration (see below)      161 161
  
Auditor’s remuneration:  
– fees payable to Group’s auditor for the audit of the Group’s annual accounts    50 40
– the audit of the Group’s subsidiaries pursuant to legislation     8 8
– taxation services (non audit services)      37 32
– corporate finance advice (non audit services)      66 81
      161 161
3 Directors and employees
Staff costs during the year for the Group were as follows:
      2010 2009
      £000 £000
Wages and salaries      3,952 3,008
Social security costs       449 369
      4,401 3,377
The average number of employees of the Group during the year ended 30 April 2010 was 85 (2009: 69) including eight directors  
(2009: eight). The directors believe no further categorisation is appropriate.
Directors’ emoluments amounted to £791,000 (2009: £858,000). Further details of emoluments paid to directors, including details  
of the highest paid director, are contained in the Remuneration committee report on pages 49-50. The directors are deemed to be key 
management. Pension contributions of £5,000 were made in respect of the directors during the year ended 30 April 2010 (2009: £Nil).
4 Investment income
      2010 2009
      £000 £000
Dividends receivable from investments      64 44
Interest receivable      1 63
      65 107
5 Exceptional items
      2010 2009
      £000 £000
Impairment of goodwill (see note 8)      270 –
Write down of non recoverable balances in closed subsidiary      40 –
Restructure costs      423 –
      733 –  Report and accounts 2010 Ashley House plc 35
6 Tax expense
A reconciliation from the standard rate of corporation tax in the UK of 28% (2009: 28%) to the actual rate is as follows:
      2010 2009
      £000 £000
Profit before tax      1,736 5,526
  
Profit multiplied by standard rate of corporation tax in the UK of 28% (2009: 28%)   486 1,547
Expenses not deductible for tax purposes      16 88
Depreciation for the period in excess of capital allowances     (16) 38
Revenue that is exempt from taxation      – (12)
Adjustments to tax charge in respect of prior periods      – (300)
Current tax charge for year       486 1,361
  
Comprising:      2010 2009
      £000 £000
Current income tax      486 1,361
Deferred tax      – –
      486 1,361
7 Earnings per ordinary share 
The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted 
average number of shares in issue during the year.
    2010   2009
   Weighted   Weighted 
   average Per share  average Per share
  Profit number amount Profit number amount
  £000 of shares pence £000 of shares pence
Basic earnings per share      
Profit attributable to ordinary shareholders  1,250 51,095,363 2.45 4,165 41,61 1,475 10.01
      
Dilutive effect of securities      
Options   630,131 (0.03)  923,475 (0.22)
Warrants    84,800 (0.01)  603,199 (0.14)
Diluted earnings per share  1,250 51,810,294 2.41 4,165 43,138,149 9.65
The average share price during the year was 75.6 pence per share, which meant that the dilutive securities shown in the table above  
were those which have exercise prices of 30, 40, and 75 pence per share.
The directors propose the payment of a final dividend of £1,671,000 (3 pence per share) following an interim dividend of £557,000 
(1 pence per share) in the financial year 2010 in relation to the current year.
As the distribution of dividends by the Group requires approval at the Shareholders’ meeting, no liability in this respect is recognised  
in the 2010 consolidated Group accounts. No tax expense consequences are expected to arise as a result of this transaction at the level  
of the Group. 36 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
8 Goodwill
      2010 2009
      £000 £000
Cost  
As at 1 May       270 270
Additions in the year  
– Sapphire Primary Care Developments Limited (SPCD) – see note 10     1,094 –
– Strategic Property Solutions (SPS) – see note 10      195 –
      1,289 –
  
As at 30 April      1,559 270
  
Impairment  
Impairment charge      (270) –
  
Net book value      1,289 270
The Group has reviewed the Goodwill on the activities of its Neil Nibblett subsidiary, which were hived up in previous years, and following 
the closure of the office it was decided that no further economic benefit would be generated from the asset and therefore an impairment 
charge should be taken against its brought forward carrying value.
9 Other intangibles
The intangible asset of £30m principally relates to the LIFTCo intangibles discussed below and the purchase of two separate interests  
as outlined in Note 10 of the financial statements. 
       £000
Cost 
As at 1 May 2009        24,800
Additions in year       5,218
 
– SPCD acquisition       3,898
– SPS acquisition       1,205
– IPC+ Limited       115
 
As at 30 April 2010       30,018
 
Impairment 
As at 1 May 2009 and 30 April 2010       –
Net book value as at 30 April 2010       30,018
 
       £000
Cost 
As at 1 May 2008       –
Additions in year       24,800
As at 30 April 2009       24,800
 
Impairment 
As at 30 April 2009       –
Net book value as at 30 April 2009       24,800  Report and accounts 2010 Ashley House plc 37
9 Other intangibles (continued)
LIFTCo Intangibles
The carrying value of the interests acquired has been reviewed with reference to the forecast earnings expected to be generated from 
them over the next ten years. The existing seven NHS LIFT agreements which underpin the value of the business have a further 16 years  
to run on average. Since the acquisition, the Group has been successfully approved as one of only seven private sector partners in Express 
LIFT, which represents an opportunity to secure further new NHS LIFT exclusive mandates.
The forecast earnings are based on the existing pipeline of projects acquired, which at acquisition had a build value of £300m.  
The discount rate used was 14% which represents the average weighted cost of capital for the Group.
The carrying value and any impairment to the intangible asset is reviewed annually on a similar basis, taking into account the expected 
future earnings, the amount of time left on the contracts in existence and the Group’s cost of capital as a discount rate. 
Value in use has been used to determine recoverable amount.
10 Acquisition of interest in jointly controlled entities and newly acquired subsidiaries
Acquisition of Sapphire Primary Care Developments Limited
On 20 November 2009 the Group completed the acquisition of the entire issued share capital of Sapphire Primary Care Developments 
Limited (SPCD) from Admenta Holdings Limited (Lloyds Pharmacy), the parent company of Lloyds Pharmacy one of the UK’s largest 
community pharmacy operators, for a total consideration of £6.8m plus an additional cash adjustment for the value of work in progress  
of £638,000. Under the terms of the acquisition, Lloyds Pharmacy became a significant shareholder in the Group with approximately 10%  
of the enlarged equity and exclusive opportunity over the future pipeline of health centre pharmacy opportunities. SPCD’s pipeline will 
supply the Group’s pipeline of ongoing projects.
       £000
Purchase consideration: 
– Costs of acquisition       310
– Work in progress       638
– Fair value of shares issued       4,450
– Deferred consideration       2,000
Total purchase consideration       7,398
     Book Fair value
      value adjustments Fair value
     £000 £000 £000
Non-current assets   
Intangible (note 9)     – 3,898 3,898
Property plant & equipment     26 – 26
Available for sales investment     1,219 417 1,636
   
Current assets   
Work in progress     607 31 638
Trade and other receivables     6,912 (6,912) –
Cash and cash equivalents     1,347 (147) 1,200
Total assets     10,111 (2,713) 7,398
Liabilities   
Deferred tax liability     – (1,094) (1,094)
Trade and other payables     (210) 210 –
Total liabilities     (210) (884) (1,094)
Net assets     9,901 (3,597) 6,304
Goodwill       1,094
Purchase consideration and costs of acquisition       7,398 38 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
10 Acquisition of interest in jointly controlled entities and newly acquired subsidiaries (continued)
Acquisition of Sapphire Primary Care Developments Limited (continued)
Deferred consideration of £2.0m has been analysed as £1.25m due within one year, and £0.75m due after more than one year. The 
amount will be paid in cash as and when specific developments are completed.
The intangible asset of £3.9m is directly attributable to the future pipeline acquired with the business. A discounted cashflow has  
been prepared by management, discounted back at the Group’s weighted average cost of capital to support the intangible’s valuation.
Management expects that the intangible will have a finite life span in excess of ten years.
The acquisition contributed £2,000 to the Group’s profit for the year. Revenue and profit before taxation would have been increased  
by £370,000 and £467,000 respectively had the acquisition occurred on 1 May 2009.
Acquisition of Strategic Property Solutions
As part of the Group’s strategy of diversification and developing new and recurring revenue streams, it announced in January 2010 that  
it had entered into a contract to acquire the development pipeline of Strategic Property Solutions Limited (SPS). SPS is a developer of 
community mental health and associated infrastructure for which the Group has seen an increasing demand within its growing pipeline  
of major integrated developments. SPS’s pipeline consists of assisted living schemes for mental health patients and the acquisition brings 
new technical expertise to the Group as it seeks to broaden its ability to secure opportunities in related mental health and social services 
care sectors. Two key employees of SPS transferred to the Group in January and are actively engaged in providing assistance on a number 
of the Group’s existing schemes.
The consideration for the acquisition is to be satisfied by the issue of 2.3m new ordinary shares in the Company (valuing the SPS business 
at £1.4m at 60.8 pence share price at the end of January 2010 when the deal was agreed) subject to certain conditions including the issue 
of Planning Approval for a development of 28 assisted living units leased on a 20 year term to a Local Authority. The Group took control 
of the planning process in January and as such has accounted for the acquisition from that date.
The acquisition has contributed £Nil to both revenue and profit before taxation in the year. At the time of preparing this report the 
consideration for the acquisition was contingent and therefore its fair value has been estimated. The business combination has therefore 
been accounted for using the provisional values shown above. The fair values will be determined in the next accounting period and,  
if necessary, subsequently adjusted for.
       £000
Purchase consideration: 
– Deferred consideration (Fair value of shares to be issued at 60.8 pence each)     1,400
Total purchase consideration       1,400
 
     Book Re-
     value valuation Fair value 
     £000 £000 £000
Non-current assets   
Intangible (see note 9)     – 1,205 1,205
   
Current assets     – – –
Total assets     – 1,205 1,205
Net assets     – 1,205 1,205
Goodwill       195
Purchase consideration and costs of acquisition*       1,400
 
* 2.3 million ordinary shares at 60.8 pence per share. 
The intangible represents the management’s expectation of the future return on achieving the completion of its first property development. 
A net initial yield of 7.5% has been applied to the expected rental stream in order to derive the intangible asset. The difference between 
the expected consideration (£1,400,000) and the carrying value of the intangible (£1,205,000) is the goodwill. Management will review 
the carrying value after practical completion of this first deal. The business combination has therefore been accounted for using  
the provisional values shown above. The fair values will be determined in the next accounting period and, if necessary, subsequently 
adjusted for.  Report and accounts 2010 Ashley House plc 39
11 Property, plant and equipment
The carrying amounts of property, plant and equipment for the periods presented in the Group’s consolidated financial statements  
as at 30 April 2010 are reconciled as follows:
    Offi ce,    
    equipment   
    furniture Motor Mobile 
    and fixtures vehicles surgeries Total
    £000 £000 £000 £000
Cost    
As at 1 May 2009    418 31 305 754
Additions arising through business acquisition    26 – – 26
Additions    122 – – 122
As at 30 April 2010    566 31 305 902
    
Accumulated depreciation    
As at 1 May 2009    218 22 301 541
Charge for the year    98 5 4 107
As at 30 April 2010    316 27 305 648
Net book value at 30 April 2010    250 4 – 254
    
    Offi ce    
    equipment,    
    furniture Motor Mobile 
    and fixtures vehicles surgeries Total
    £000 £000 £000 £000
Cost    
As at 1 May 2008    382 31 305 718
Additions    36 – – 36
As at 30 April 2009    418 31 305 754
    
Accumulated depreciation    
As at 1 May 2008    127 16 284 427
Charge for the year    91 6 17 114
As at 30 April 2009    218 22 301 541
Net book value at 30 April 2009    200 9 4 213
12 Available for sale investments
All assets are stated at fair value:
      2010 2009
      £000 £000
As at 1 May      738 1,321
Additions in year      1,636 –
Disposals in year      (1,636) –
Movement in fair value      870 (583)
As at 30 April      1,608 738
At 30 April 2010 the investment in AH Medical Properties plc had a market value of £1,608,000 (2009: £738,000). During the year the 
Group acquired and subsequently disposed of SPCD’s loan stock holdings.
 Nature of work Class of share capital held Proportion held
AH Medical Properties plc (Incorporated in England) Investment Property  Ordinary shares of 0.01 pence each 6.8% 40 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
13 Jointly controlled entities
The Group has the following jointly controlled entities which are all incorporated in England and Wales:
      Proportion held
AH Scarborough Health Park Limited      50%
IPC Plus Limited      50%
Wilco Plus Limited      50%
AHLP Pharmacy Limited      25%
Infracare Group Limited, AHBB ELL Holdings Limited, AHBB LHIL Holdings Limited 
The Group holds 100% of the ‘A’ shares in the above companies, which gives operational control. Amber Infrastructure Group Limited 
owns 100% of the ‘B’ shares in these companies which entitles them to protect existing income streams from underlying investments  
and gives them the right to future investment opportunities from the NHS LIFT pipeline of projects. These companies do not trade but 
hold interests in underlying NHS LIFT companies, East London LIFT Investments Limited (ELLIL) and Lift Healthcare Investments Limited (LHIL) 
and the Infracare Group LIFT Companies, (Bristol Infracare LIFT Limited, Dudley Infracare LIFT Limited and Oxford Infracare LIFT Limited).
The Group also jointly controls IPC Plus Limited and Wilco Plus Limited with groups of General Practitioners. These entities are engaged  
on providing clinical services in West Sussex and Salisbury respectively.
The financial statements of joint controlled entities have been incorporated into the Group’s consolidated financial statements using 
proportionate consolidation. The aggregate amounts relating to these jointly controlled entities that have been included in the Group’s 
financial statements are as follows:
Investment in joint ventures
       AH 
 AHLP   Infracare   Scarborough 
 Pharmacy   Group IPC+ Wilco+  Health Park 
 Limited ELLIL LHIL Limited Limited  Limited Limited Total
 £000 £000 £000 £000 £000 £000 £000 £000
Statement of  
comprehensive income        
Revenue – 452 961 359 105 40 – 1,917
Operating profit/(loss) – (49) (80) 121 (97) 27 (11) (89)
Profit/(loss) before tax – (49) (80) 121 (97) 27 (11) (89)
Income tax expense/(credit) – 14 (6) (54) 28 (8) – (26)
Share of profits/(losses) of         
joint ventures after tax – (35) (86) 67 (69) 19 (11) (115)
        
Balance sheet        
Non-current assets – – 2 23 – 5 – 30
Current assets – 836 1,475 2,201 52 3 1,792 6,359
Current liabilities – (401) (493) (124) (34) (9) (1,527) (2,588)
Non-current liabilities – (111) (251) – – – – (362)
Net assets – 324 733 2,100 18 (1) 265 3,439
14 Work in progress
      2010 2009
      £000 £000
Work in progress      2,818 1,361
Work in progress is the value of land and contracted works at the balance sheet date.  Report and accounts 2010 Ashley House plc 41
15 Trade and other receivables
      2010 2009
      £000 £000
Trade receivables      3,660 1,585
Amounts recoverable on contracts      16,022 13,466
Retentions held on contracts      544 309
Other receivables      3,806 4,592
Prepayments and accrued income      860 953
      24,892 20,905
Trade and other receivables at the balance sheet date comprise amounts receivable from Design & Construction and Management 
Services. The directors consider that the carrying amount of trade and other receivables approximates to their fair value due to their 
short-term nature. The average credit period taken on sales of services is 20 days (2009: 24 days).
The following table provides analysis of trade receivables that were past due at 30 April 2010 but not impaired. Management believes  
that the balances for both trade receivables and amounts recoverable on contracts are ultimately recoverable based on a review of past 
payment history and the current financial status of the customers, which are typically NHS bodies, NHS LIFT companies (which are joint 
ventures between the company and the NHS) or AH Medical Properties plc, which is well known to the Group. In relation to amounts 
recoverable from NHS Liftco companies, where there has historically been a larger than anticipated period to collect revenues, the amount 
paid has been in excess of the original amount and has covered the time cost of the debt.
 
Within ‘Other receivables’ there is £1,396,000 (2009: £2,127,000) which represents the Group’s proportionate share of cash balances  
held in the Group’s interest in its seven LIFTCo’s. The joint venture companies operate a number of bank accounts with different banks 
and their deposit rates vary with the duration of the deposit maturity. 
This cash is not immediately available to the Group, but feed through to the Group by way of payment for services provided. Upon wind 
up these cash proportions would be made available to the Group.
Trade receivables
Trade receivables post their due date are summarised as follows:
       2010 2009
       £000 £000
Past due up to 30 days      159 56
Past due 31-90 days      131 –
Past due over 90 days      176 365
Loans and receivables past due       466 421
16 Cash and cash equivalents
      2010 2009
      £000 £000
Cash at bank       1,010 1,187
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash held by the 
Group and short-term bank deposits with an original maturity of three months or less. 
Total cash and cash equivalents are used for the statement of Group cash flows. The carrying amount of these assets approximates  
to their fair value.
The cash balances held by the Group at the bank are held within current accounts and earn interest of 0.25% (2009: 0.25%) under  
base from Lloyds TSB Banking Group.  42 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
17 Trade and other payables
      2010 2009
      £000 £000
Trade payables      2,612 1,328
Social security and other taxes      – 185
Deferred consideration on the SPCD acquisition (2009: LIFT)     1,250 500
Other payables      639 1,296
Accrued expenses      5,403 4,355
      9,904 7,664
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period 
taken for trade purchases is 40 days (2009: 24 days).
The directors consider that the carrying amount of trade payables approximates to their fair value due to their short-term non-interest 
bearing nature.
18 Bank borrowings
      2010 2009
      £000 £000
Share of joint venture loan – Scarborough      1,330 1,330
Share of joint venture loan – LIFT companies      362 797
      1,692 2,127
The Group has as at 30 April 2010 and 2009, borrowings of £1.3m relating to debt held within the joint venture company,  
AH Scarborough Health Park Limited. Loan interest is chargeable at a variable rate of 2.75% over three month Libor (currently 0.70%).  
The security comprises a first charge over the 3.7 acre site and a guarantee from Ashley House plc. The Group has a 50% interest  
in the joint venture, AH Scarborough Health Park Limited, as shown in note 13. 
The Group’s share of various loans to the jointly controlled NHS LIFT companies of £362,000 (2009: £797,000) has been included in  
the balance sheet. These loans relate to the original set up of the NHS LIFT companies and are guaranteed by the relevant Primary Care 
Trust(s), should there be insufficient revenue generated from completed projects to repay these loans.
19 Current tax liabilities
Income tax liabilities comprise corporation tax liabilities, calculated or estimated by the Group companies.
      2010 2009
      £000 £000
Current tax liabilities      477 1,219
20 Amounts falling due after more than one year
      2010 2009
      £000 £000
Bank revolving credit facility      2,000 –
Deferred consideration on SPCD acquisition (note 10)      750 –
      2,750 –
  
During the year the Group secured a £2m revolving credit facility from the Lloyds TSB Banking Group. Interest is charged at 2.75% over  
three month LIBOR. The loan matures on 30 September 2012.
  
21 Financial risk management
There is no exchange rate risk, and the fair values of the assets and liabilities of the Group are not materially different from their net 
book values.
The Group’s financial instruments comprise cash resources, and various items such as trade receivables and trade payables, that arise 
directly from its operations. The main purpose of these financial instruments is to raise finance for the Group’s operations. The main  
risks arising from the Group’s financial instruments are credit risk, liquidity risk and interest fluctuation risks.  Report and accounts 2010 Ashley House plc 43
21 Financial risk management (continued)
Financial liabilities and assets included in the balance sheet relate to the following IAS 39 categories:
    Total   Total
     for    for
   Other Non balance  Other Non balance
  financial financial sheet financial financial sheet
  liabilities liabilities heading liabilities liabilities heading
  2010 2010 2010 2009 2009 2009
  £000 £000 £000 £000 £000 £000
Balance sheet headings – liabilities      
Trade payables  2,612 – 2,612 1,328 – 1,328
Accruals  5,403 – 5,403 4,355 – 4,355
Other payables  2,000 – 2,000 1,796 – 1,796
VAT and taxation payables  – 639 639 – 185 185
Tax payable  – 477 477 – 1,219 1,219
Borrowings  3,692 – 3,692 2,127 – 2,127
Total  13,707 1,116 14,823 9,606 1,404 1 1,010
  Available  Total for  Available  Total for
  for sale Non balance  for sale Non balance
 Loans &  financial financial sheet Loans &  financial financial sheet
 receivables assets assets heading receivables assets assets heading
 2010 2010 2010 2010 2009 2009 2009 2009
 £000 £000 £000 £000 £000 £000 £000 £000
Balance sheet headings – assets        
Cash and cash equivalents 1,010 – – 1,010 1,187 – – 1,187
Trade receivables – current 3,660 – – 3,660 1,585 – – 1,585
Amounts recoverable         
on contracts 16,022 – – 16,022 13,466 – – 13,466
Retentions held on contracts – – 544 544 – – 309 309
Other receivables – current 3,806 – – 3,806 4,592 – – 4,592
Prepayments – – 860 860 – – 953 953
Available for sale         
financial investments – 1,608 – 1,608 – 738 – 738
Total 24,498 1,608 1,404 27,510 20,830 738 1,262 22,830
The board reviews and determines policies for managing each of these risks and they are summarised below. These policies have been 
consistently applied throughout the period.
All of the Group’s assets and liabilities are held at amortised cost, with the exception of available for sale investments, which are held  
at fair value. Available for sale investments, which are shares in AH Medical Properties plc, are included in the consolidated statement  
of financial position at fair value. As the shares are listed on Plus they are considered to meet the criteria for level 1 in the fair value 
measurement hierarchy in IFRS7. Therefore they are held by the Group at the current bid price. The directors are of the opinion that there  
is no material difference between the book value and the fair value of any of the Group’s assets or liabilities.
Credit risk
Credit risk is the risk that the counterparty will fail to discharge its obligation.
The Group’s principal financial assets are bank balances and cash and trade and other receivables, which represent the Group’s  
maximum exposure to credit risk in relation to financial assets.
The Group’s credit risk is attributable to its trade receivables of £3,660,000 (2009: £1,585,000) and accrued income balances  
of £16,022,000 (2009:£13,466,000). The amounts presented in the balance sheet are net of allowances for doubtful receivables, 
estimated by the Group’s management based on prior experience and their assessment of the current economic environment.
During the year the Group’s main customers were Medical Properties Limited, a subsidiary of AH Medical Properties plc and Soho  
Health Plaza Limited. During the year, the Group supplied design, contracting and asset management services to the AH Medical 
Properties plc Group totalling £9,728,000 (2009: £4,330,000) which represented 27% of the Group’s revenue (2009: 19%) and design 
and contracting services to Soho Health Plaza Limited of £3,226,000 (2009: £293,000).
New customers are subject to an initial credit assessment using external credit reference agencies and trade references are confirmed.  44 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
21 Financial risk management (continued)
These credit limits are reviewed on an on-going basis and subject to senior management oversight. The payment position of past due 
trade receivables is monitored daily and actively managed.
No collateral is held by the Group in relation to its financial assets.
Liquidity risk
Amounts recoverable on contracts relate to projects that are largely ongoing as at 30 April 2010. A substantial proportion of the amounts 
have yet to be invoiced, however, management believes that the balances are ultimately recoverable based on a review of past payment 
history and the current financial status of the customers, which are typically NHS bodies, NHS LIFT companies (which are joint ventures 
between the company and the NHS) or AH Medical Properties plc, which is well known to the Group. 
The Group obtains sufficient liquidity at all times by efficient cash management, and by ensuring that only credit-worthy customers are 
engaged with.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based upon the remaining period at the balance 
sheet date to the contractual maturity dates. The amounts disclosed in the table are the contractual undiscounted cashflows. 
30 April 2010
    Up to   More than 
    1 year 1-2 years 2-5 years 5 years
    £’000 £000 £000 £000
Non-derivative financial liabilities     
Borrowings (excluding finance leases)    1,761 69 2,069 –
Deferred consideration    1,250 750 – –
Trade payable and other payables    9,443 248 233 67
Total     12,454 1,067 2,302 67
30 April 2009
    Up to   More than 
    1 year 1-2 years  2-5 years 5 years
    £’000 £’000 £000 £000
Non-derivative financial liabilities     
Borrowings (excluding finance leases)    2,127 – – –
Deferred consideration    500 – – –
Trade payable and other payables    8,602 195 402 108
Total     11,229 195 402 108
The cash outflows required to settle these financial liabilities are the same amounts as presented in the Group balance sheet.
Interest rate risk
The Group is liable for the loan to its Joint Venture Company AH Scarborough Health Park Limited from Lloyds TSB Banking Group for 
£2.66m for the Group’s proportionate share of the JV borrowing which has been guaranteed by Ashley House plc. The loan has a +/- 1% 
sensitivity of £13,300. During the year the Group converted its overdraft into a secured revolving credit facility. The interest rate is variable 
at 2.75% above three month LIBOR. The Group is therefore exposed to fluctuations in the underlying LIBOR rate. 
22 Deferred tax 
     Share-
    Arising on based  
    acquisitions payments Provisions Total
    £000 £000 £000 £000
Deferred tax asset and (liabilities)     
As at 1 May 2009    – 183 27 210
Charged to equity    – (145) – (145)
Arising on the acquisition of SPCD    (1,094) – – (1,094)
As at 30 April 2010    (1,094) 38 27 (1,029)  Report and accounts 2010 Ashley House plc 45
22 Deferred tax (continued)
     Share-
    Arising on based
    acquisitions payments Provisions Total
    £000 £000 £000 £000
Deferred tax asset     
As at 1 May 2008    – 800 27 827
Charged to equity    – (617) – (617)
As at 30 April 2009    – 183 27 210
Disclosed as:
      2010 2009
      £000 £000
Deferred tax asset      65 210
Deferred tax liability      (1,094) –
      (1,029) 210
Deferred tax assets have been calculated using the expected future tax rate of 28%. Any changes in the future would affect these 
amounts proportionately.
23 Share capital
      2010 2009
      £000 £000
Authorised  
67,000,000 (2009: 67,000,000) Ordinary shares of 1 pence each      670 670
  
Allotted, called up and fully paid  
55,689,755 (2009: 47,094,379) Ordinary shares of 1 pence each      557 470
The ordinary shares are entitled to receipt of dividends. Ordinary shares have full voting rights.
Shares issued in the period      Number of shares
At 1 May 2009      47,094,379
Shares issued re acquisition of SPCD (81 pence per share)     5,493,827
Shares issued in lieu of dividend       54,549
Warrants exercised during the year (30 pence per share)     660,000
Shares issued for cash (75 pence per share)      2,387,000
At 30 April 2010      55,689,755
At 1 May 2008      27,544,379
Warrants exercised to finance acquisition (120 pence per share)     7,880,000
Shares issued re acquisition (150 pence per share)      8,000,000
Options and other warrants exercised during the year (30 pence per share)    170,000
Shares issued for cash (65 pence per share)      3,500,000
At 30 April 2009      47,094,379 46 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
23 Share capital (continued)
  Price     
Options  (pence) 2010 Issued Lapsed Exercised 2009
Issued 2004 expire 2014  30 1,040,000 – – – 1,040,000
Issued 2005 exercisable from 2008, expire 2015  85 100,000 – – – 100,000
Issued 2005 exercisable from 2008, expire 2015  98 90,000 –  – 90,000
Issued 2005 exercisable from 2008, expire 2015  108 170,000 – (10,000) – 180,000
Issued 2007 exercisable from 2007, expire 2017  150 1,672,500 – (15,000) – 1,687,500
Issued 2007 exercisable from 2009, expire 2017  159 100,000 – – – 100,000
Issued 2007 exercisable from 2009, expire 2017  175 50,000 – – – 50,000
Issued 2007 exercisable from 2009, expire 2017  152 50,000 – – – 50,000
Issued 2007 exercisable from 2009, expire 2017  152 227,500 – (27,500) – 255,000
Issued 2008 exercisable from 2010, expire 2018  150 485,000 – (172,500) – 657,500
Issued 2009 exercisable from 2011, expire 2019  75 320,000 – – – 320,000
Total options    4,305,000 – (225,000) – 4,530,000
Weighted average price 111.8 pence per option (2009: 136.6 pence per option).
   Price    
Warrants   (pence) 2010 Issued Exercised 2009
Issued 2004, expire 2009   30 – – (660,000) 660,000
Issued 2007, expire 2010   40 180,000 – – 180,000
Total warrants    180,000 – (660,000) 840,000
Weighted average price: 40.0 pence per warrant (2009: 32.7 pence per warrant).
Between 1 May 2009 and 30 April 2010 the company issued 660,000 new shares for warrants exercised. The share price at the date  
of exercise was 80.5 pence. Exercise of an option is subject to continued employment and warrants are subject to time limitation. The fair 
value per option and warrant granted and the assumptions used in the calculation of fair value for awards made after 7 November 2002 
are set out in the table overleaf.
At 30 April 2010 options and warrants over unissued ordinary 1 pence shares were as follows:
  
  Option,  Options,  Closing   Risk free  
  warrant price warrant share price Exercise Expected interest Dividend Fair value 
  per share periods at grant price volatility rate yield per share 
Date of grant Number (pence) ending (pence) (pence) % % % (pence)
2004 1,040,000 30 2014 30 30 19.97 5.25 5 5
2004 180,000* 40 2010 40 40 19.97 5.25 5 5
2006 100,000 85 2016 85 85 19.97 5.25 5 13
2006 90,000 98 2016 98 98 19.97 5.25 5 9
2006 170,000 108 2016 108 108 19.97 5.25 5 10
2007 55,000 150 2017 150 150 19.97 5.25 5 24
2007 12,500 150 2017 150 150 19.97 5.25 5 19
2007 1,105,000 150 2017 150 150 19.97 5.25 5 22
2007 120,000 150 2017 150 150 19.97 5.25 5 14
2007 187,500 150 2017 150 150 19.97 5.25 5 11
2007 142,500 150 2017 150 150 19.97 5.25 5 8
2007 50,000 150 2017 150 150 19.97 5.25 5 6
2007 100,000 159 2017 159 159 17.68 5.25 3.5 21
2007 50,000 175 2017 175 175 17.68 5.25 3.5 23
2007 50,000 152 2017 152 152 17.68 5.25 3.5 20
2007 227,500 152 2017 152 152 17.68 5.25 3.5 20
2008 485,000** 150 2018 150 150 17.15 5.25 3.5 8
2009 320,000** 75 2019 75 75 17.15 5.25 3.5 6
* These are warrants, all others are options.
** These options are not yet vested; all others have vested and are exercisable at the balance sheet date.
The market price of the Group’s shares at 30 April 2010 was 52.5 pence (2009: 70.5 pence) and the range during the year was between 
51.5 pence and 85.0 pence (2009: 67.0 pence and 148.5 pence). The weighted average exercise price of the options and warrants is 
108.9 pence (2009: 100.8 pence).  Report and accounts 2010 Ashley House plc 47
23 Share capital (continued)
The vesting period of an option is assumed to be commensurate with the exercise period and this varies between being immediately 
exercisable and five years. Expected volatility is a measure of the amount by which a share price is expected to fluctuate during a period. 
The volatility of the Company’s share price was calculated using the basic Hull-White model. The risk free rate is the yield on deposits  
held by the Company. The dividend yield of 3.5% is based on the dividends paid during the period. Options and warrants are valued  
using the basic Hull-White model.
24 Share premium
      2010 2009
      £000 £000
As at 1 May       31,627 8,040
Issue of share capital      1,896 23,587
As at 30 April      33,523 31,627
25 Merger relief reserve
Merger relief is relief from setting up a share premium account, when shares are issued as part or all of the consideration for acquiring  
a subsidiary. Under s612 CA 2006 the conditions for merger relief are: 
• Equity shares are issued as part of an acquisition arrangement
• The issuing company has secured at least 90% equity holding in the counterparty
• Where the acquired company has more than one class of equity shares, the 90% condition must be met for each type of equity shares.
This relief has been applied to the acquisition of Sapphire Primary Care Developments Limited.
26 Capital commitments
The Group did not have any capital commitments at 30 April 2010 or 30 April 2009.
27 Commitments under operating leases
The Group’s future minimum operating lease payments are as follows:
      2010 2009
      £000 £000
Less than one year      342 219
Between one and five years      481 597
Five years or more      67 108
      890 924
Lease payments recognised as an expense during the year amount to £387,000 (2009: £295,000). No sub-lease income is expected 
as all assets held under lease agreements are used exclusively by the Group.
Operating lease agreements do not contain any contingent rent clauses. None of the operating lease agreements contain renewal  
or purchase options or any restrictions. The leases may be renewed when due. 48 Ashley House plc Report and accounts 2010
Notes to the financial statements
continued
28 Contingent liabilities
Under the terms of a loan by Lloyds TSB Banking Group to AH Scarborough Health Park Limited for £2,660,000 (see note 18). The Group 
provided a corporate guarantee for the whole of the loan amount secured on the land. The Group has provided a limited guarantee to 
WilcoPlus of £100,000 in respect of the contract with the Primary Care Trust, the Equitable Access Centre. There is no recourse to the 
Group in respect of the loans in the jointly controlled NHS LIFT entities.
29 Related party transactions
During the year the Group received invoices totalling £124,000 (2009: £213,000) from Layland Walker Limited, a company controlled  
by B Walker in respect of consultancy services and rent contribution for the London office. At 30 April 2010 the balance due to Layland 
Walker Limited was £Nil (2009: £Nil). In addition, the Company made payments of £101,000 (2009: £205,000) to Gibson Freake Edge,  
a partnership of which A F Gibson is a partner in respect of consultancy services. At 30 April 2010 the balance due to Gibson Freake Edge 
was £13,000 (2009: £12,000).
During the year the Group traded with the following joint controlled group entities in respect of construction, Bexley, Bromley and  
Greenwich LIFT £81,000 (2009: £Nil), Brent, Harrow and Hillingdon LIFT £1,039,000 (2009: £5,162,000) with £Nil due at 30 April 2010  
(2009: £480,000), East London LIFT of £1,139,000 (2009: £Nil) with £158,000 due at 30 April 2010 (2009: £Nil) and Wolverhampton 
and Walsall LIFT of £1,882,000 (2009: £Nil) with £154,000 due at 30 April 2010. The following amounts were invoiced this year for 
management services to jointly controlled entities, Bexley Bromley and Greenwich NHS LIFT £305,000 (2009: £53,000), Brent, Harrow 
and Hillingdon LIFT £201,000 (2009: £89,000), East London NHS LIFT (2009: £272,000) and Wolverhampton City and Walsall Lift 
£27,000 (2009: £Nil).
30 Capital management
The business model operated by the Group is not particularly capital intensive. Construction projects are not typically owned and there is 
little timing difference between payment and income on contracting. However, as the design and development income is not receivable 
until the scheme has reached financial close, there is a requirement for working capital for the design work and for the overhead required 
to deliver the pipeline of projects.
Investment has been made and is on-going in new areas of activity such as management services and also to support activities such 
as asset management, for example with the capital investment in 6.8% of AH Medical Properties plc and interests in NHS LIFT companies.
Equity capital is regarded as a scarce and valued resource. Investment in new ventures and in the business is made with a regard to returns 
over a reasonable and relevant period taking account of the nature of the investment.
Debt is employed in the financing of the business from time to time but typically where there is asset backing to support it, other than 
for the Group revolving credit facility of £2m which is secured by a floating charge over the Group’s assets.
31 Dividends
Subsequent to the year end but prior to the approval of the financial statements, the directors have recommended the payment of 
a final dividend of 3.0 pence per share, totalling £1,671,000.  Report and accounts 2010 Ashley House plc 49
Remuneration policy for the executive directors
The Group’s policy on executive directors’ remuneration is to:
•  attract and retain high quality executives by paying competitive remuneration packages relevant to each director’s role, experience and 
the external market. The packages include contributions to private medical insurance; and
•  give incentive to directors to maximise shareholder value through a long term reward approach, mainly through the award of shares, 
which are not exercisable immediately, against key performance indicators.
The remuneration committee’s revised policy, developed with PwC support, has been circulated to and discussed with major shareholders.
Service agreements
No director has a service agreement with a notice period that exceeds six months.
Directors’ remuneration
      Salaries,  Salaries,
      fees and  fees and
      benefits benefits
      2010 2009
      Total Total
      £ £
N K Croxford (Resigned 19 May 2008)      – 5,181
D J M Hartshorne (Appointed 22 February 2010)*      22,301 –
J Holmes      201,462 232,040
S G Minion      180,221 225,095
G Mosley (Resigned 19 May 2008)      – 2,802
B L Walker (Resigned 22 February 2010)      171,406 200,222
A J Walters (Appointed 23 November 2009)**      27,143 –
R E L Warner (Resigned 19 May 2008)      – 6,438
Executive      602,533 671,778
  
J Arnold-Forster      28,000 22,500
J Coghlan       25,000 23,750
A C Cook (Resigned 1 June 2009)      – –
G J Frost (Resigned1 June 2009)      – –
A F Gibson      89,988 98,088
Sir W Wells      45,000 41,875
A J Willetts (Appointed 23 November 2009)      – –
Non-executive      187,988 186,213
      790,521 857,991
The Group made the following contributions on behalf of executive directors to the Group’s pension fund during the year.
Company pension contributions 
      2010 2009
      Total Total
      £ £
D J M Hartshorne (Appointed 22 February 2010)*      669 –
J Holmes      2,000 –
S G Minion      1,600 –
B L Walker (Resigned 22 February 2010)      – –
A J Walters (Appointed 23 November 2009)**      808 –
Executive      5,077 –
* This remuneration only refers to the period as a director.
** This remuneration only refers to the period as an executive director.
Remuneration committee report 50 Ashley House plc Report and accounts 2010
Directors’ interests 
The directors who held office at the end of the financial year had the following beneficial interests in the ordinary share capital of Ashley 
House plc at 30 April 2010 according to the register of directors’ interests:
    Number of   Number of
    shares of   shares of
    1 pence % of   1 pence
     held at issued Acquired held at
    30 April share  during 30 April
    2010 capital year 2009
A F Gibson    50,000 0.1% – 50,000
D J M Hartshorne    5,978 <0.1% 5,978 –
J Holmes     1,140,736 2.4% 41,132 1,099,604
S G Minion     3,774,825 8.0% – 3,774,825
Sir W Wells    60,000 0.1% – 60,000
Connected persons’ interest in share capital
M Holmes holds 709,328 shares; G Holmes holds 100,000 shares (parents of J Holmes).
Interests in share options
The interests of the directors and persons connected to the directors in options over shares in Ashley House plc are set out below:
    Number of   Options 
    options at Exercise  held at 
    30 April Price Number 30 April 
    2010 pence Granted 2009
J Arnold-Forster     50,000 175 –  50,000
J Coghlan     50,000 152 –  50,000
A F Gibson    100,000 85 – 100,000
    100,000 150 – 100,000
D J M Hartshorne    160,000 75 – 160,000
J Holmes    330,000 30 – 330,000
    300,000 150 – 300,000
S G Minion    330,000 30 – 330,000
    300,000 150 – 300,000
W Wells    100,000 159 – 100,000
The 30 pence options were granted on 15 August 2004 and are exercisable within ten years from the date of grant. The 85 pence options 
were granted on 11 January 2006 and the 108 pence options were granted on 6 February 2006. These options vest in three years and 
expire within ten years from the date of grant. The 150 pence options were granted on 16 January 2007. These options vest in five years 
and expire within ten years from the date of grant. The 159 pence options were granted on 25 April 2007, the 175 pence options  
were granted on 5 June 2007, the 152 pence options were granted on 19 September 2007 and the 75 pence options were granted on  
8 April 2009. These options vest in two years and expire within ten years from the date of grant. 
Interests in warrants 
There were no interests held by directors or persons connected to the directors in warrants over shares in Ashley House plc at  
30 April 2010.
Market value of shares 
Between 1 May 2009 and 30 April 2010 the shares traded in the range 51.5 pence to 85.0 pence. At 30 April 2010 the share price was  
52.5 pence per share.
Remuneration committee report
continued  Report and accounts 2010 Ashley House plc 51
Directors’ responsibilities for the financial statements
The directors are responsible for preparing the financial statements in accordance with applicable law and regulations.
Under the law the directors are required to prepare Group financial statements in accordance with International Financial Reporting 
Standards (IFRS) as adopted by the European Union and have elected to prepare parent company financial statements in accordance  
with United Kingdom Generally Accepted Accounting Practice (UK GAAP). The financial statements are required by law to give a true  
and fair view of the state of affairs of the Group and company and of the profit or loss of the Group for that period. In preparing those 
financial statements, the directors are required to:
• select suitable accounting policies and apply them consistently;
• make judgements and estimates that are reasonable and prudent;
•  state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained  
in the financial statements; and
•  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in 
operational existence for the foreseeable future.
The directors are responsible for keeping adequate accounting records, which disclose with reasonable accuracy at any time the financial 
position of the Group and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for 
safeguarding assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 
The directors are also responsible for the preparation of the Report of the directors and other information in the annual report.
In so far as the directors are aware:
• there is no relevant audit information of which the Group’s auditor is unaware; and
•  the directors have taken all steps deemed necessary to make themselves aware of any relevant audit information and to establish that 
the auditor is aware of that information.
The directors confirm that the accounting policies adopted in the preparation of the financial statements are appropriate to the Group, 
have been consistently applied and are supported by reasonable prudent judgements and estimates. All applicable accounting standards 
have been followed.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group’s 
website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions. 
Statement of directors’ responsibilities 52 Ashley House plc Report and accounts 2010
Report of the independent auditor to the members of Ashley House plc
We have audited the financial statements of Ashley House plc for the year ended 30 April 2010 which comprise the consolidated 
statement of comprehensive income, consolidated and company balance sheets, consolidated statement of changes in equity, 
consolidated statement of cash flows, and other related notes. The financial reporting framework that has been applied in the preparation 
of the Group financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European 
Union. The financial reporting framework that has been applied in the preparation of the parent company financial statements is 
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them  
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ responsibilities statement, the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance 
with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing 
Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP.
Opinion on financial statements
In our opinion:
•  the financial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 30 April 2010  
and of the Group’s profit for the year then ended; 
• the group financial statements have been properly prepared in accordance with IFRS as adopted by the European Union;
•  the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted 
Accounting Practice; and
•  the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Report of the directors for the financial year for which the financial statements are prepared  
is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received  
from branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Tracey James
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Oxford
5 July 2010
Report of the independent auditor  Report and accounts 2010 Ashley House plc 53
      2010 2009
     Note £000 £000
Fixed assets   
Goodwill     2 195 69
Other intangible assets      2 1,205 –
Tangible assets     3 211 189
Investments     4 36,734 28,466
      38,345 28,724
Current assets   
Work in progress     5 750 –
Debtors     6 21,161 18,014
Cash at bank and in hand      958 1, 1 17
      22,869 19,131
Creditors: amounts falling due within one year     7 (11,987) (8,142)
   
Net current assets      10,882 10,989
   
Creditors: amounts falling due after more than one year     (2,750) –
Net assets      46,477 39,713
   
Capital and reserves   
Called up share capital     8 557 470
Share premium account     9 33,523 31,627
Merger reserve     9 4,395 –
Other reserve     9 1,400 –
Share-based payments reserve     9 433 425
Profit and loss account     9 6,169 7, 191
Shareholders’ funds      46,477 39,713
The financial statements were approved by the board of directors and authorised for issue on 5 July 2010. 
They were signed on its behalf by:
Jonathan Holmes
Chief Executive
Company number: 2563627
Company balance sheet 
at 30 April 2010
The accompanying accounting policies and notes form an integral part of these financial statements. 54 Ashley House plc Report and accounts 2010
Basis of preparation
The financial statements have been prepared in accordance with applicable UK accounting standards (UK GAAP) and under the  
historical cost convention.
The principal accounting policies of the company are set out below.
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of services in the ordinary course of  
the company’s activities. Revenue is shown, net of value-added tax rebates and discounts. Revenue from long term contracts  
is detailed below.
Construction contracts
Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion  
of the contract activity at the balance sheet date.
This is normally assessed by the Company’s management by taking into consideration all the information at the balance sheet date.  
The Company’s contracts usually define milestone payments for the project work to be carried out. The maximum amount of revenue  
to be recognised for each milestone is determined by estimating relative contract fair values of each project phase. Variations in contract 
work, claims and incentive payments are included to the extent that they have been agreed with the customer.
Where the outcome of a long-term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs 
incurred and where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they  
are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an  
expense immediately.
Design fees and development fees
Where the outcome of a design and development contract can be estimated reliably and it is probable that the contract will be  
profitable, revenue and cost are recognised over the period of the contract. The Company does not consider that the outcome of a design  
or development contract can be reliably determined until it is at least 50% complete. Where it is probable that total costs will exceed  
total contract revenue, the expected loss is recognised as an expense immediately. In situations where the outcome cannot be estimated 
reliably, revenue is recognised only to the extent of costs incurred that are recoverable.
The Company uses the ‘percentage of completion’ method for design and development contracts to determine the appropriate amount  
to recognise in a given period. The stage of completion is measured by reference to the actual contract costs incurred up to the balance 
sheet date as a percentage of the total estimated costs for each contract. Provision is made for losses incurred or foreseen in bringing  
the contract to completion as soon as they become apparent. 
Asset management
Asset management fees relate to the provision of services to manage the property assets of AH Medical Properties plc and AH 
Scarborough Health Park Limited. Income is recognised evenly throughout the period based upon the value of the managed assets  
in accordance with the asset management agreement.
The Company has a performance linked management agreement with AH Medical Properties plc. Due to a substantial increase in  
AH Medical Properties plc share price the Company benefited from an out-performance fee in addition to its standard asset management 
fee arrangements.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is calculated to 
write down the cost or valuation less estimated residual value of all tangible fixed assets, other than freehold land, on the straight line 
basis over their expected useful economic lives. The periods generally applicable are:
• office equipment, furniture and fixtures 4 years
• motor vehicles 4 years
• mobile surgeries 4 years
Investments
Investments are included at cost less provision for amounts written off to the profit and loss account.
Work in progress and construction contracts
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal levels of activity. Costs associated  
with construction contracts are included in stock to the extent that they cannot be matched with contract work accounted for as turnover. 
Long-term contract balances included in stocks are stated at cost, after provision has been made for any foreseeable losses and the 
deduction of applicable payments on account. No element of profit is included in the carrying value of work in progress. Full provision  
is made for losses on all contracts in the year in which the loss is first foreseen.
Company principal accounting policies  Report and accounts 2010 Ashley House plc 55
Income taxes
The charge for current income tax is based on the results for the period as adjusted for items that are non-assessable or disallowed. 
It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred income tax is the income tax expected to be payable or recoverable on differences between the carrying amounts of assets and 
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using 
the balance sheet liability method. Deferred income tax is provided in full and is recognised on temporary differences between the carrying 
amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred 
income tax liabilities are generally recognised on all taxable temporary differences and deferred tax assets are recognised to the extent that  
it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities  
are not recognised if the temporary difference arises from goodwill (or any discount on acquisition) or from the initial recognition (other than  
in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. 
Deferred income tax is measured on an undiscounted basis at the tax rates that are expected to apply in the period when the liability is 
settled or the asset is realised, based on tax rates and laws enacted or substantively enacted at the balance sheet date. Deferred income 
tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, 
in which case the deferred tax is also dealt with other comprehensive income. Deferred income tax liabilities are recognised on taxable 
temporary differences arising on investments in subsidiaries, except where the Company is able to control the reversal of the temporary 
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets and 
liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current 
tax assets and liabilities on a net basis.
Leased assets
Costs in respect of operating leases are charged on a straight-line basis over the lease term.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
A financial liability exists where there is a contractual obligation to deliver cash or another financial asset to another entity, or to exchange 
financial assets or financial liabilities under potentially unfavourable conditions. In addition, contracts which result in the entity delivering a 
variable number of its own equity instruments are financial liabilities. Shares containing such obligations are classified as financial liabilities. 
Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. The carrying amount of the 
liability is increased by the finance cost and reduced by payments made in respect of that liability. Finance costs are calculated so as to 
produce a constant rate of charge on the outstanding liability. 
An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. 
Dividends and distributions relating to equity instruments are debited directly to reserves.
Intangible assets – goodwill
Goodwill, representing the excess of the fair value of consideration given over the fair values of the identifiable net assets acquired, 
is capitalised and amortised on a straight line basis over its estimated useful economic life of four years.
Merger relief reserve
Merger relief is relief from setting up a share premium account, when shares are issued as part or all of the consideration for acquiring  
a subsidiary. Under s612 CA 2006 the conditions for merger relief are: 
• Equity shares are issued as part of an acquisition arrangement
• The issuing company has secured at least 90% equity holding in the counterparty
• Where the acquired company has more than one class of equity shares, the 90% condition must be met for each type of equity shares.
This relief has been applied to the acquisition of Sapphire Primary Care Developments Limited.
Other reserve
The company entered into a contract to purchase the trading assets and liabilities of a company called Strategic Property Solutions Limited 
during the year. The form of consideration agreed was 2.3 million Ashley House plc shares at a share price that was to be contingent  
on the date that a set of requirements had been fulfilled. 
Share-based payments
The company issues share options to its employees. The company has applied the requirements of FRS 20 Share-based Payments. FRS 20 
has been applied to all grants of equity instruments after 7 November 2002 that were unvested as of 1 May 2006. The company issues 
equity-settled share-based payments to employees. Equity-settled share-based payments are measured at fair value at the date of grant. 
Options and warrants are valued using the basic Hull-White model. The fair value determined at the grant date of the equity-settled, 
share-based payments is expensed on a straight-line basis over the vesting period, based on the company’s estimate of shares that will 
eventually vest, updated at each balance sheet date.
  56 Ashley House plc Report and accounts 2010
1 Profit for the financial year
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its 
own profit and loss account in these financial statements. The Company’s profit for the year after tax was £1,401,000 (2009: £3,775,000).
Details of directors’ remuneration and employee costs are set out in note 3 to the Group financial statements and in the remuneration 
committee report.
2 Intangible assets 
      Other 
      intangible 
      assets Goodwill
      £000 £000
Cost     
At 1 May 2009 and at 30 April 2010      – 425
Additions in the period – SPS (see note 9)      1,205 195
At 30 April 2010      1,205 620
    
Amortisation    
At 1 May 2009      – 356
Charged to the year      – 69
At 30 April 2010      – 425
Net book value as at 30 April 2010      1,205 195
Net book value as at 30 April 2009      – 69
Acquisition of jointly controlled entities and newly acquired subsidiaries
See note 10 of Group accounts.
3 Tangible assets
    Offi ce   
    equipment,    
    furniture Motor Mobile 
    and fixtures vehicles surgeries Total
    £000 £000 £000 £000
Cost    
At 30 April 2009    385 21 305 711
Additions    120 – – 120
At 30 April 2010    505 21 305 831
    
Depreciation    
At 30 April 2009    209 12 301 522
Charge to the year    89 5 4 98
At 30 April 2001    298 17 305 620
Net book amount at 30 April 2010    207 4 – 211
Net book amount at 30 April 2009    176 9 4 189
Notes to the company financial statements  Report and accounts 2010 Ashley House plc 57
4 Investments
     Subsidiary  
     undertakings  
     and joint Listed 
     ventures investments Total
     £000 £000 £000
At 1 May 2009     27,728 738 28,466
Acquisition in year (See note 10 in Group accounts)     7,398 – 7,398
Reversal of previous recognised impairment loss     – 870 870
At 30 April 2010     35,126 1,608 36,734
 Nature of work Class of share capital held Proportion held
Subsidiaries   
Neil Niblett and Associates Limited Architects Ordinary shares of £1 each 100%
Ashley House Clinical Services Limited Management Services Ordinary shares of £1 each 100%
Sapphire Primary Care Developments Limited Property development Ordinary shares of £1 each 100%
   
Joint Ventures   
Ashley House plc   
AH Scarborough Health Park Limited Property development  Ordinary shares of £1 each 50%
AHLP Pharmacy Limited Pharmacy development Ordinary shares of £1 each 25%
Ashley House Clinical Services Limited   
IPC Plus Limited Management Services Ordinary shares of £1 each 50%
Wilco Plus Limited Management Services Ordinary shares of £1 each 50%
Infracare Group Limited, AHBB ELL Holdings Limited, AHBB LHIL Holdings Limited
Ashley House owns 100% of the ‘A’ shares in these companies, which give operational control. Amber Infrastructure Group Limited  
owns 100% of the ‘B’ shares in these companies which entitles them to protect existing income streams from underlying investments  
and gives them the right to future investment opportunities from the NHS LIFT pipeline of projects. These companies do not trade but 
hold interest in underlying NHS LIFT companies.
At 30 April 2010 the investment in AH Medical Properties plc had a market value of £1,608,000 (2009: £738,000).
 Nature of work Class of share capital held Proportion held
AH Medical Properties plc Investment Property  Ordinary shares of 0.01 pence each 6.8%
5 Work in progress
      2010 2009
      £000 £000
Land      750 –
6 Debtors
      2010 2009
      £000 £000
Trade debtors      1,286 1,539
Amounts owed by Group undertakings      329 1,326
Amounts recoverable on contracts      18,766 14,160
Prepayments and other debtors      780 989
      21,161 18,014
Amounts owed by Group undertakings due greater than one year £Nil (2009: £Nil). 58 Ashley House plc Report and accounts 2010
7 Creditors: amounts falling due within one year
      2010 2009
      £000 £000
Trade creditors      1,677 1,296
Amounts owed to Group undertakings      3,483 643
Social security and other taxes      – 216
Corporation tax      158 1,178
Other creditors      1,250 500
Accrued expenses      5,419 4,309
      11,987 8,142
8 Share capital
Detailed disclosure of the company’s share capital, options and warrants is included in note 23 of the consolidated financial statements 
of the Group.
9 Reserves
  Share-
  based Share  Merger  Profit 
  payment premium relief Other and loss 
  reserve account reserve reserve account Total
  £000 £000 £000 £000 £000 £000
At 1 May 2009  425 31,627 – – 7,191 39,243
Profit for the year  – – – – 1,401 1,401
Dividends paid  – – – – (2,423) (2,423)
Issue of shares  – 1,896 – – – 1,896
Merger relief reserve  – – 4,395 – – 4,395
Other reserve  – – – 1,400 – 1,400
Share-based payment charge  8 – – – – 8
At 30 April 2010  433 33,523 4,395 1,400 6,169 45,920
During the year, the company paid a final dividend of 4.0 pence per share for the year ended 30 April 2009; an interim dividend of  
1 pence per share for the year ended 30 April 2010 and is proposing a final dividend for the year to 30 April 2010 of 3.0 pence per share.
10 Capital commitments
The Company did not have any capital commitments at 30 April 2010 or 30 April 2009.
Notes to the company financial statements
continued  Report and accounts 2010 Ashley House plc 59
11 Commitments under operating leases
Operating lease payments amounting to £236,000 (2009: £236,000) are due within one year. The leases to which these amounts relate 
expire as follows:
    2010  2009
    Land and  Land and 
    buildings Other buildings Other
    £000 £000 £000 £000
In one year or less    25 2 21 1
Between one and five years    259 39 145 25
In five years or more    17 – 44 –
    301 41 210 26
12 Contingent liabilities
The Company did not have any contingent liabilities at 30 April 2010 or 30 April 2009.
13 Share-based payments
Details of options and warrants over the Company’s shares are set out in note 23 to the Group financial statements.
14 Related party transactions
During the year the Group received invoices totalling £124,000 (2009: £213,000) from Layland Walker Limited, a company controlled  
by B Walker in respect of consultancy services and rent contribution for the London office. At 30 April 2010 the balance due to Layland 
Walker Limited was £Nil (2009: £Nil). In addition, the company made payments of £101,000 (2009: £205,000) to Gibson Freake Edge,  
a partnership of which A F Gibson is a partner in respect of consultancy services. At 30 April 2010 the balance due to Gibson Freake Edge 
was £13,000 (2009: £12,000).
During the year the Company traded with the following joint controlled group entities in respect of construction, Bexley, Bromley and 
Greenwich LIFT of £81,000 (2009: £Nil), Brent, Harrow and Hillingdon LIFT £1,039,000 (2009: £5,162,000) with £Nil due at  
30 April 2010 (2009: £480,000), East London LIFT of £1,139,000 (2009: £Nil) with £158,000 due at 30 April 2010 (2009: £Nil) and 
Wolverhampton and Walsall LIFT of £1,882,000 (2009: £Nil) with £154,000 due at 30 April 2010. The following amounts were invoiced 
this year to jointly controlled entities, Bexley Bromley and Greenwich NHS LIFT £305,000 (2009: £53,000), Brent, Harrow and Hillingdon 
LIFT £201,000 (2009: £89,000), East London NHS LIFT (2009: £272,000) and Wolverhampton City and Walsall Lift £27,000 (2009: £Nil). 60 Ashley House plc Report and accounts 2010
Company registration number
2563627
Registered office
The Priory
Stomp Road
Burnham
Buckinghamshire SL1 7LW
 
Directors
Sir W Wells Non-executive Chairman
S G Minion  Executive Deputy Chairman
J Holmes Chief Executive
A J Walters Finance Director
D J M Hartshorne Chief Operating Officer
J Arnold-Forster Non-executive director
J Coghlan Non-executive director
A F Gibson Non-executive director
A J Willetts Non-executive director
S W Gray Non-executive director (alternate to A J Willetts)
Secretary
S Ronaldson
 
Nominated Advisor and Broker
Numis Securities Limited
The London Stock Exchange Building
10 Paternoster square
London EC4M 7LT
 
Bankers
Lloyds TSB Banking Group
High Street
Slough
Berkshire SL1 1DH
 
Solicitors
Hammonds LLP
2 Park Lane
Leeds LS3 1ES
 
Auditor
Grant Thornton UK LLP
1 Westminster Way
Oxford OX2 0PZ
Company information Strength – in depth and reliability
Ashley House is a leading health & social care 
infrastructure company, with almost 20 years experience  
in delivering healthcare development projects efficiently  
and cost effectively. Our approach is based on building 
lasting working partnerships with our clients and their  
local communities. These relationships remain central  
to the business sustaining consistent and ongoing growth 
for all our stakeholders. This has been a year of challenges 
but the group is evolving to benefit from changes in the 
NHS and public sector.
Contents
01 Highlights
02 Our business model
03 Projects and pipeline
04 Chairman’s statement
05 Enhanced services
06 Case study: Goscote Palliative Care Centre
08 Case study: Pharmacy joint venture
10 Chief Executive’s statement
12 CSR review
14 Case study: Stanwell Health and Community Centre
16 Case study: Brent House Surgery, Bridgwater
18 Board of directors
20 Report of the directors
22 Consolidated statement of comprehensive income
23 Consolidated balance sheet 
24 Consolidated statement of changes in equity
25 Consolidated statement of cash flows
26 Principal accounting policies 
32 Notes to the financial statements
49 Remuneration committee report
51 Statement of directors’ responsibilities
52 Report of the independent auditor
53 Company balance sheet
54 Company principal accounting policies
56 Notes to the company financial statements
60 Company information
 
Cover images
1. Nurse and patient 
Meriden Surgery, Watford
2. Meriden Surgery, Watford – Completion date: October 2009  
Ashley House provided a replacement Primary Care Centre for the branch surgery  
of a large town centre based GP practice. The part single, part two storey building 
now provides a much improved base for the practice. It comprises 428m
2
 of 
primary care accommodation and has a 100m
2
 pharmacy. 
3. Topping out ceremony at Goscote, Walsall 
NHS Walsall’s £5.4 million Palliative Care Centre currently being built in 
conjunction with Wolverhampton & Walsall LIFTco. See pages 6 & 7. 
4. Achievement of ISO14001 – Certificate Presentation by BSI:  May 2010  
Michelle Timpson, Customer Services Manager of the BSI Group presented Nigel 
Croxford, Technical Director and Mark Marston, Marketing Manager of Ashley 
House with the ISO14001 award for meeting the requirements for Environmental 
Management Systems. For further information see our CSR review pages 12 & 13. 
5. Hartfield Surgery, Sussex – Completion date: December 2009 
The Practice previously provided care for its patients from a modular building.  
Ashley House delivered a purpose built surgery within budget and on programme 
with functional and wider environmental objectives being met in a contemporary 
building responsive in terms of form and materials to its rural setting. 
This report has been printed in the UK. It has been produced with the  
approach to measure and meet environmental standards and improve  
a company’s environmental performance, where the main areas targeted  
for continual reduction arise from the use of solvents, energy consumption  
and waste generation. 
 
This paper is manufactured using a paper that is 75% recycled with the  
remainder being made from environmentally-friendly Elemental Chlorine  
Free (ECF) wood pulp sourced from well-managed sustainable forests. The  
paper is also bio-degradable and recyclable. All inks used are vegetable based. 
 
If you have finished reading this report and no longer wish to retain it please  
pass it on to other interested readers, return it to Ashley House plc or dispose  
of it in your recycled paper waste. Thank you.
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4 Ashley House plc
Report and  
accounts 2010
Supporting change
in health and social care
Ashley House plc
The Priory
Stomp Road
Burnham
Buckinghamshire
SL1 7LW
Telephone: +44 (0)1628 600340
Fax: +44 (0)1628 600345
www.ashleyhouseplc.com
Ashley House plc Report and accounts 2010