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 01628 600340
fax 44 01628 600345
wwwashleyhouseplccom
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 £54 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 environmentallyfriendly elemental chlorine  
free ecf wood pulp sourced from wellmanaged sustainable forests the  
paper is also biodegradable 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 £249m 2009 £238m
 pre tax profit before exceptionals fell 55 to £25m 2009 £55m
 earnings per share down 75 to 25p 2009 100p
 final dividend 30p per share giving a total for the year of 4p 2009 40p
 net assets up 19 to £460m 2009 £387m
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
25 10
51 08
09
41 07
27 06
198 08
256 07
231 06
revenue
£m
5
249 10
238 09
net assets
£m
19
pretax profit before exceptionals
£m
55
55
460 10
45 06
110 07
134 08
387 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 suttoninashfield
 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 preclose 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 preclose announcement made on  
4 may 2010 revenue grew to £249m 2009 £238m whilst 
profit before exceptionals and tax fell to £25m 2009 £55m 
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 reassessment 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 30p per share resulting in a total of 40p  
for the year 2009 40p
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 1650 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 startup in 
2001 andrew willetts finance director of lloydspharmacy 
joined the ashley house board as nonexecutive 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 communitybased 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 
inpatient 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 inpatient hospice beds a day 
hospice and outpatient rehabilitation services and a range  
of specialist palliative care support services including 
complementary therapies
the £55m scheme will see the construction of a new two 
storey building of 2500 m
2
 providing a range of new inpatient 
and outpatient adult palliative care services under a 25 year 
concession to build and manage the new facility
the unit will accommodate the following

 inpatient palliative care services 12 beds

  outpatient therapies including blood transfusions  
palliative chemotherapy and day hospice services

  specialist nursing across a range of disciplines

  lymphoedema services eg 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 £100000 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 

 biodiverse 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 1650 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  
nonexecutive 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 £74m 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 1650 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£15m 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 reenforcing our belief that our business will benefit 
from the continuing shift of care from secondary to community 
and gpled 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 outperformance 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 £387m to 
£460m 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 cooperation 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 bestlooking 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 2700 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 29000 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 1500 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 8000 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 gilmourwhite 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 1202 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 cooperation 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 cooperation 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 grouplloyds 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 cofounded 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
nonexecutives
andrew gibson mbe 
123
nonexecutive director
aged 59 – his first career was as a highranking 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 threestar 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 arnoldforster
 1
nonexecutive 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
nonexecutive 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 
23
nonexecutive director
aged 52 – john is chairman of inchcape shipping services and a 
nonexecutive 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 exelocean 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 
12
nonexecutive 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 20012007 chairman of the commercial advisory 
board to the department of health 20032007 member of the 
general council of the king’s fund 1995to 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 nhsled 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 10 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 30 pence per share amounting to £1671000 40 pence per share on 16 october 2009 £1884000
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  nonexecutive 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 arnoldforster  nonexecutive director
j coghlan  nonexecutive director
c cook  nonexecutive director   resigned 1 june 2009
g frost  nonexecutive director   resigned 1 june 2009
a f gibson  nonexecutive director
a j willetts  nonexecutive director    appointed 23 november 2009
s w gray  nonexecutive 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 arnoldforster retire by rotation and being eligible offer themselves for reelection
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 coordinating 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 £2000000 
revolving credit facility during the year from its bankers lloyds tsb banking group the loan interest is charged at a variable 275 over  
three month libor at 30 april 2010 the group had further borrowings of £1330000 relating to the debt held within the joint venture 
company ah scarborough health park limited loan interest is variable at 275 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 nonexecutive directors and chaired by a nonexecutive 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 4894 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 24876 23834
   
cost of sales      16651 12575
   
gross profit      8225 1 1259
   
administrative expenses      5632 5726
depreciation and impairment      107 1 14
exceptional items     5 733 –
   
operating expenses      6472 5840
   
operating profit     2 1753 5419
   
interest payable      82 –
   
investment income     4 65 107
   
profit before taxation      1736 5526
   
tax expense     6 486 1361
profit after tax for the year attributable to equity holders of the parent    1250 4165
   
other comprehensive incomeexpense   
fair value movement on available for sale investments   
current year gainslosses      870 584
total comprehensive income for the year attributable to equity shareholders of the parent  2120 3581
   
basic earnings per share      7 245p 1001p
   
diluted earnings per share      7 241p 965p
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
noncurrent assets   
goodwill     8 1289 270
other intangible     9 30018 24800
property plant and equipment     11 254 213
available for sale investments     12 1608 738
deferred tax asset     22 65 210
      33234 26231
current assets   
work in progress     14 2818 1361
trade and other receivables     15 24892 20905
cash and cash equivalents     16 1010 1187
      28720 23453
   
total assets      61954 49684
   
current liabilities   
trade and other payables     17 9904 7664
bank borrowing     18 1692 2127
current income tax     19 477 1219
      12073 1 1010
   
net current assets      16647 12443
   
noncurrent liabilities   
amounts falling due after more than one year     20 2750 –
deferred tax liabilities     22 1094 –
   
total liabilities      15917 1 1010
net assets      46037 38674
   
equity   
share capital     23 557 470
share premium     24 33523 31627
merger relief reserve     25 4395 –
other reserve      1400 –
sharebased payments reserve      496 608
retained earnings      5666 5969
total equity      46037 38674
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 31627 – – 608 5969 38674
       
issue of share capital 87 1896 4395 – – – 6378
deferred considerationequity settled – – – 1400 – – 1400
movement on deferred tax – – – – 145 – 145
dividends – – – – – 2423 2423
sharebased payment charge – – – – 33 – 33
transactions with owners 87 1896 4395 1400 112 2423 5243
       
profit for the year – – – – – 1250 1250
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 – – – – – 2120 2120
at 30 april 2010 557 33523 4395 1400 496 5666 46037
       
       
     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 8040 – – 2221 2910 13446
       
issue of share capital 195 23587 – – – – 23782
transfer between reserves on  
conversion of warrants – – – – 1085 1085 –
movement on deferred tax – – – – 617 – 617
dividends – – –  – 1607 1607
sharebased payment charge – – – – 89 – 89
transactions with owners 195 23587 – – 1613 522 21647
       
profit for the year – – – – – 4165 4165
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 – – – – – 3581 3581
at 30 april 2009 470 31627 – – 608 5969 38674
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      1736 5526
  
adjustments for  
depreciation and impairment      377 1 14
sharebased payment charge      33 89
dividend received      65 44
interest paid      82 –
interest income      – 63
operating cash flows before movements in working capital     2163 5622
  
increase in work in progress      819 102
increase in trade and other receivables      3987 8191
increase in trade and other payables      737 920
cash used by operations      1906 1751
  
income taxes paid      1228 1395
interest paid      82 –
net cash used in operating activities      3216 3146
  
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     – 12824
dividend received      65 44
interest received      – 63
net cash used in investing activities      333 12736
  
financing activities  
increase in borrowings      1565 25
proceeds from disposal of available for sale financial assets     1636 –
proceeds from issuance of ordinary share capital net of costs     1928 11782
dividends paid to company’s shareholders      2423 1607
net cash from financing activities      2706 10200
  
net decrease in cash and cash equivalents      177 5682
  
cash and cash equivalents at beginning of the year     1187 6869
cash and cash equivalents at the end of the year      1010 1187
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 
cashgenerating 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
sharebased payments
the fair values of sharebased payments outstanding have been estimated using the basic hullwhite 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 
intragroup transactions balances income and expenses are eliminated fully on consolidation intragroup 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 coterminus 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 ie 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 postacquisition 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 valueadded 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 outperformance 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 writedown 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 changes 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 straightline 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 straightline 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 pretax 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 cashgenerating unit to which the asset belongs if the recoverable amount of an asset or cashgenerating unit is estimated  
to be less than its carrying amount the carrying amount of the asset cashgenerating 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 cashgenerating 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 cashgenerating 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 
longterm 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 availableforsale and are measured at subsequent reporting dates at fair value 
for availableforsale 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
interestbearing borrowings
interestbearing 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 nonassessable 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 paidin capital 
net of any related income tax benefits equity settled sharebased employee remuneration is credited to the sharebased payments reserve 
until related stock options are exercised the sharebased 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
sharebased payments
the group issues share options to its employees the group has applied the requirements of ifrs 2 sharebased 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 equitysettled sharebased payments to employees equitysettled sharebased payments are measured 
at fair value at the date of grant options and warrants are valued using the basic hullwhite model the fair value determined at the 
grant date of the equitysettled sharebased payments is expensed on a straightline 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 23 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 
shortterm employee benefit costs
the undiscounted amount of shortterm 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     18108 6768 24876
   
there are no intersegment sales so all revenue is from external customers   
result   
segment result     4100 4125 8225
   
unallocated corporate expenses       5632
unallocated depreciation expense       107
profit from operations       2486
interest payable       82
investment income       65
profit before exceptional item and tax expense       2469
exceptional items       733
profit before tax expense       1736
tax expense       486
profit after tax expense       1250
     design   management 
     construction services consolidated
other information     £000 £000 £000
balance sheet   
assets   
segment assets     21653 2826 24479
   
corporate assets     – – 37475
consolidated total assets     21653 2826 61954
   
liabilities   
segment liabilities     7608 339 7947
   
unallocated corporate liabilities     –  – 7970
consolidated total liabilities     7608 339 15917
   
   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     18517 5317 23834
there are no intersegment sales so all revenue is from external customers   
   
result   
segment result     7125 4134 11259
   
unallocated corporate expenses       5840
   
profit from operations       5419
investment income       107
       5526
profit before tax expense   
   
tax expense       1361
profit after tax expense       4165
   
     design   management 
     construction services consolidated
other information     £000 £000 £000
balance sheet   
assets   
segment assets     11623 2795 14418
   
corporate assets     – – 35266
consolidated total assets     11623 2795 49684
   
liabilities   
segment liabilities     6783 185 6968
   
corporate liabilities     –  – 4042
consolidated total liabilities     6783 185 11010
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 £9728000 2009 £4333000 with £426000 due at the year end 
2009 £3000 during the year the group made total sales to soho health plaza limited of £3226000 2009 £5162000 with 
£12000 due at the year end 2009 £478000
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 nonexecutive 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      4401 3377
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      3952 3008
social security costs       449 369
      4401 3377
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 £791000 2009 £858000 further details of emoluments paid to directors including details  
of the highest paid director are contained in the remuneration committee report on pages 4950 the directors are deemed to be key 
management pension contributions of £5000 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      1736 5526
  
profit multiplied by standard rate of corporation tax in the uk of 28 2009 28   486 1547
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 1361
  
comprising      2010 2009
      £000 £000
current income tax      486 1361
deferred tax      – –
      486 1361
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  1250 51095363 245 4165 4161 1475 1001
      
dilutive effect of securities      
options   630131 003  923475 022
warrants    84800 001  603199 014
diluted earnings per share  1250 51810294 241 4165 43138149 965
the average share price during the year was 756 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 £1671000 3 pence per share following an interim dividend of £557000 
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     1094 –
– strategic property solutions sps – see note 10      195 –
      1289 –
  
as at 30 april      1559 270
  
impairment  
impairment charge      270 –
  
net book value      1289 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        24800
additions in year       5218
 
– spcd acquisition       3898
– sps acquisition       1205
– ipc limited       115
 
as at 30 april 2010       30018
 
impairment 
as at 1 may 2009 and 30 april 2010       –
net book value as at 30 april 2010       30018
 
       £000
cost 
as at 1 may 2008       –
additions in year       24800
as at 30 april 2009       24800
 
impairment 
as at 30 april 2009       –
net book value as at 30 april 2009       24800  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 £68m plus an additional cash adjustment for the value of work in progress  
of £638000 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       4450
– deferred consideration       2000
total purchase consideration       7398
     book fair value
      value adjustments fair value
     £000 £000 £000
noncurrent assets   
intangible note 9     – 3898 3898
property plant  equipment     26 – 26
available for sales investment     1219 417 1636
   
current assets   
work in progress     607 31 638
trade and other receivables     6912 6912 –
cash and cash equivalents     1347 147 1200
total assets     10111 2713 7398
liabilities   
deferred tax liability     – 1094 1094
trade and other payables     210 210 –
total liabilities     210 884 1094
net assets     9901 3597 6304
goodwill       1094
purchase consideration and costs of acquisition       7398 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 £20m has been analysed as £125m due within one year and £075m due after more than one year the 
amount will be paid in cash as and when specific developments are completed
the intangible asset of £39m 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 £2000 to the group’s profit for the year revenue and profit before taxation would have been increased  
by £370000 and £467000 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 23m new ordinary shares in the company valuing the sps business 
at £14m at 608 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 608 pence each     1400
total purchase consideration       1400
 
     book re
     value valuation fair value 
     £000 £000 £000
noncurrent assets   
intangible see note 9     – 1205 1205
   
current assets     – – –
total assets     – 1205 1205
net assets     – 1205 1205
goodwill       195
purchase consideration and costs of acquisition       1400
 
 23 million ordinary shares at 608 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 75 has been applied to the expected rental stream in order to derive the intangible asset the difference between 
the expected consideration £1400000 and the carrying value of the intangible £1205000 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 1321
additions in year      1636 –
disposals in year      1636 –
movement in fair value      870 583
as at 30 april      1608 738
at 30 april 2010 the investment in ah medical properties plc had a market value of £1608000 2009 £738000 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 001 pence each 68 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 – 1917
operating profitloss – 49 80 121 97 27 11 89
profitloss before tax – 49 80 121 97 27 11 89
income tax expensecredit – 14 6 54 28 8 – 26
share of profitslosses of         
joint ventures after tax – 35 86 67 69 19 11 115
        
balance sheet        
noncurrent assets – – 2 23 – 5 – 30
current assets – 836 1475 2201 52 3 1792 6359
current liabilities – 401 493 124 34 9 1527 2588
noncurrent liabilities – 111 251 – – – – 362
net assets – 324 733 2100 18 1 265 3439
14 work in progress
      2010 2009
      £000 £000
work in progress      2818 1361
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      3660 1585
amounts recoverable on contracts      16022 13466
retentions held on contracts      544 309
other receivables      3806 4592
prepayments and accrued income      860 953
      24892 20905
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 
shortterm 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 £1396000 2009 £2127000 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 3190 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       1010 1187
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 shortterm 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 025 2009 025 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      2612 1328
social security and other taxes      – 185
deferred consideration on the spcd acquisition 2009 lift     1250 500
other payables      639 1296
accrued expenses      5403 4355
      9904 7664
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 shortterm noninterest 
bearing nature
18 bank borrowings
      2010 2009
      £000 £000
share of joint venture loan – scarborough      1330 1330
share of joint venture loan – lift companies      362 797
      1692 2127
the group has as at 30 april 2010 and 2009 borrowings of £13m relating to debt held within the joint venture company  
ah scarborough health park limited loan interest is chargeable at a variable rate of 275 over three month libor currently 070  
the security comprises a first charge over the 37 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 £362000 2009 £797000 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 
trusts 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 1219
20 amounts falling due after more than one year
      2010 2009
      £000 £000
bank revolving credit facility      2000 –
deferred consideration on spcd acquisition note 10      750 –
      2750 –
  
during the year the group secured a £2m revolving credit facility from the lloyds tsb banking group interest is charged at 275 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  2612 – 2612 1328 – 1328
accruals  5403 – 5403 4355 – 4355
other payables  2000 – 2000 1796 – 1796
vat and taxation payables  – 639 639 – 185 185
tax payable  – 477 477 – 1219 1219
borrowings  3692 – 3692 2127 – 2127
total  13707 1116 14823 9606 1404 1 1010
  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 1010 – – 1010 1187 – – 1187
trade receivables – current 3660 – – 3660 1585 – – 1585
amounts recoverable         
on contracts 16022 – – 16022 13466 – – 13466
retentions held on contracts – – 544 544 – – 309 309
other receivables – current 3806 – – 3806 4592 – – 4592
prepayments – – 860 860 – – 953 953
available for sale         
financial investments – 1608 – 1608 – 738 – 738
total 24498 1608 1404 27510 20830 738 1262 22830
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 £3660000 2009 £1585000 and accrued income balances  
of £16022000 2009£13466000 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 £9728000 2009 £4330000 which represented 27 of the group’s revenue 2009 19 and design 
and contracting services to soho health plaza limited of £3226000 2009 £293000
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 ongoing 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 creditworthy 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 12 years 25 years 5 years
    £’000 £000 £000 £000
nonderivative financial liabilities     
borrowings excluding finance leases    1761 69 2069 –
deferred consideration    1250 750 – –
trade payable and other payables    9443 248 233 67
total     12454 1067 2302 67
30 april 2009
    up to   more than 
    1 year 12 years  25 years 5 years
    £’000 £’000 £000 £000
nonderivative financial liabilities     
borrowings excluding finance leases    2127 – – –
deferred consideration    500 – – –
trade payable and other payables    8602 195 402 108
total     11229 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 
£266m 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 £13300 during the year the group converted its overdraft into a secured revolving credit facility the interest rate is variable 
at 275 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    1094 – – 1094
as at 30 april 2010    1094 38 27 1029  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      1094 –
      1029 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  
67000000 2009 67000000 ordinary shares of 1 pence each      670 670
  
allotted called up and fully paid  
55689755 2009 47094379 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      47094379
shares issued re acquisition of spcd 81 pence per share     5493827
shares issued in lieu of dividend       54549
warrants exercised during the year 30 pence per share     660000
shares issued for cash 75 pence per share      2387000
at 30 april 2010      55689755
at 1 may 2008      27544379
warrants exercised to finance acquisition 120 pence per share     7880000
shares issued re acquisition 150 pence per share      8000000
options and other warrants exercised during the year 30 pence per share    170000
shares issued for cash 65 pence per share      3500000
at 30 april 2009      47094379 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 1040000 – – – 1040000
issued 2005 exercisable from 2008 expire 2015  85 100000 – – – 100000
issued 2005 exercisable from 2008 expire 2015  98 90000 –  – 90000
issued 2005 exercisable from 2008 expire 2015  108 170000 – 10000 – 180000
issued 2007 exercisable from 2007 expire 2017  150 1672500 – 15000 – 1687500
issued 2007 exercisable from 2009 expire 2017  159 100000 – – – 100000
issued 2007 exercisable from 2009 expire 2017  175 50000 – – – 50000
issued 2007 exercisable from 2009 expire 2017  152 50000 – – – 50000
issued 2007 exercisable from 2009 expire 2017  152 227500 – 27500 – 255000
issued 2008 exercisable from 2010 expire 2018  150 485000 – 172500 – 657500
issued 2009 exercisable from 2011 expire 2019  75 320000 – – – 320000
total options    4305000 – 225000 – 4530000
weighted average price 1118 pence per option 2009 1366 pence per option
   price    
warrants   pence 2010 issued exercised 2009
issued 2004 expire 2009   30 – – 660000 660000
issued 2007 expire 2010   40 180000 – – 180000
total warrants    180000 – 660000 840000
weighted average price 400 pence per warrant 2009 327 pence per warrant
between 1 may 2009 and 30 april 2010 the company issued 660000 new shares for warrants exercised the share price at the date  
of exercise was 805 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 1040000 30 2014 30 30 1997 525 5 5
2004 180000 40 2010 40 40 1997 525 5 5
2006 100000 85 2016 85 85 1997 525 5 13
2006 90000 98 2016 98 98 1997 525 5 9
2006 170000 108 2016 108 108 1997 525 5 10
2007 55000 150 2017 150 150 1997 525 5 24
2007 12500 150 2017 150 150 1997 525 5 19
2007 1105000 150 2017 150 150 1997 525 5 22
2007 120000 150 2017 150 150 1997 525 5 14
2007 187500 150 2017 150 150 1997 525 5 11
2007 142500 150 2017 150 150 1997 525 5 8
2007 50000 150 2017 150 150 1997 525 5 6
2007 100000 159 2017 159 159 1768 525 35 21
2007 50000 175 2017 175 175 1768 525 35 23
2007 50000 152 2017 152 152 1768 525 35 20
2007 227500 152 2017 152 152 1768 525 35 20
2008 485000 150 2018 150 150 1715 525 35 8
2009 320000 75 2019 75 75 1715 525 35 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 525 pence 2009 705 pence and the range during the year was between 
515 pence and 850 pence 2009 670 pence and 1485 pence the weighted average exercise price of the options and warrants is 
1089 pence 2009 1008 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 hullwhite model the risk free rate is the yield on deposits  
held by the company the dividend yield of 35 is based on the dividends paid during the period options and warrants are valued  
using the basic hullwhite model
24 share premium
      2010 2009
      £000 £000
as at 1 may       31627 8040
issue of share capital      1896 23587
as at 30 april      33523 31627
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 £387000 2009 £295000 no sublease 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 £2660000 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 £100000 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 £124000 2009 £213000 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 £101000 2009 £205000 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 £13000 2009 £12000
during the year the group traded with the following joint controlled group entities in respect of construction bexley bromley and  
greenwich lift £81000 2009 £nil brent harrow and hillingdon lift £1039000 2009 £5162000 with £nil due at 30 april 2010  
2009 £480000 east london lift of £1139000 2009 £nil with £158000 due at 30 april 2010 2009 £nil and wolverhampton 
and walsall lift of £1882000 2009 £nil with £154000 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 £305000 2009 £53000 brent harrow 
and hillingdon lift £201000 2009 £89000 east london nhs lift 2009 £272000 and wolverhampton city and walsall lift 
£27000 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 ongoing 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 68 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 30 pence per share totalling £1671000  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      – 5181
d j m hartshorne appointed 22 february 2010      22301 –
j holmes      201462 232040
s g minion      180221 225095
g mosley resigned 19 may 2008      – 2802
b l walker resigned 22 february 2010      171406 200222
a j walters appointed 23 november 2009      27143 –
r e l warner resigned 19 may 2008      – 6438
executive      602533 671778
  
j arnoldforster      28000 22500
j coghlan       25000 23750
a c cook resigned 1 june 2009      – –
g j frost resigned1 june 2009      – –
a f gibson      89988 98088
sir w wells      45000 41875
a j willetts appointed 23 november 2009      – –
nonexecutive      187988 186213
      790521 857991
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      2000 –
s g minion      1600 –
b l walker resigned 22 february 2010      – –
a j walters appointed 23 november 2009      808 –
executive      5077 –
 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    50000 01 – 50000
d j m hartshorne    5978 01 5978 –
j holmes     1140736 24 41132 1099604
s g minion     3774825 80 – 3774825
sir w wells    60000 01 – 60000
connected persons’ interest in share capital
m holmes holds 709328 shares g holmes holds 100000 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 arnoldforster     50000 175 –  50000
j coghlan     50000 152 –  50000
a f gibson    100000 85 – 100000
    100000 150 – 100000
d j m hartshorne    160000 75 – 160000
j holmes    330000 30 – 330000
    300000 150 – 300000
s g minion    330000 30 – 330000
    300000 150 – 300000
w wells    100000 159 – 100000
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 515 pence to 850 pence at 30 april 2010 the share price was  
525 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 wwwfrcorgukapbscopeuknp
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 1205 –
tangible assets     3 211 189
investments     4 36734 28466
      38345 28724
current assets   
work in progress     5 750 –
debtors     6 21161 18014
cash at bank and in hand      958 1 1 17
      22869 19131
creditors amounts falling due within one year     7 11987 8142
   
net current assets      10882 10989
   
creditors amounts falling due after more than one year     2750 –
net assets      46477 39713
   
capital and reserves   
called up share capital     8 557 470
share premium account     9 33523 31627
merger reserve     9 4395 –
other reserve     9 1400 –
sharebased payments reserve     9 433 425
profit and loss account     9 6169 7 191
shareholders’ funds      46477 39713
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 valueadded 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 longterm 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 outperformance 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 
longterm 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 nonassessable 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 straightline 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 23 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 
sharebased payments
the company issues share options to its employees the company has applied the requirements of frs 20 sharebased 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 
equitysettled sharebased payments to employees equitysettled sharebased payments are measured at fair value at the date of grant 
options and warrants are valued using the basic hullwhite model the fair value determined at the grant date of the equitysettled 
sharebased payments is expensed on a straightline 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 £1401000 2009 £3775000
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      1205 195
at 30 april 2010      1205 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      1205 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     27728 738 28466
acquisition in year see note 10 in group accounts     7398 – 7398
reversal of previous recognised impairment loss     – 870 870
at 30 april 2010     35126 1608 36734
 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 £1608000 2009 £738000
 nature of work class of share capital held proportion held
ah medical properties plc investment property  ordinary shares of 001 pence each 68
5 work in progress
      2010 2009
      £000 £000
land      750 –
6 debtors
      2010 2009
      £000 £000
trade debtors      1286 1539
amounts owed by group undertakings      329 1326
amounts recoverable on contracts      18766 14160
prepayments and other debtors      780 989
      21161 18014
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      1677 1296
amounts owed to group undertakings      3483 643
social security and other taxes      – 216
corporation tax      158 1178
other creditors      1250 500
accrued expenses      5419 4309
      11987 8142
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 31627 – – 7191 39243
profit for the year  – – – – 1401 1401
dividends paid  – – – – 2423 2423
issue of shares  – 1896 – – – 1896
merger relief reserve  – – 4395 – – 4395
other reserve  – – – 1400 – 1400
sharebased payment charge  8 – – – – 8
at 30 april 2010  433 33523 4395 1400 6169 45920
during the year the company paid a final dividend of 40 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 30 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 £236000 2009 £236000 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 sharebased 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 £124000 2009 £213000 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 £101000 2009 £205000 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 £13000 2009 £12000
during the year the company traded with the following joint controlled group entities in respect of construction bexley bromley and 
greenwich lift of £81000 2009 £nil brent harrow and hillingdon lift £1039000 2009 £5162000 with £nil due at  
30 april 2010 2009 £480000 east london lift of £1139000 2009 £nil with £158000 due at 30 april 2010 2009 £nil and 
wolverhampton and walsall lift of £1882000 2009 £nil with £154000 due at 30 april 2010 the following amounts were invoiced 
this year to jointly controlled entities bexley bromley and greenwich nhs lift £305000 2009 £53000 brent harrow and hillingdon 
lift £201000 2009 £89000 east london nhs lift 2009 £272000 and wolverhampton city and walsall lift £27000 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 nonexecutive chairman
s g minion  executive deputy chairman
j holmes chief executive
a j walters finance director
d j m hartshorne chief operating officer
j arnoldforster nonexecutive director
j coghlan nonexecutive director
a f gibson nonexecutive director
a j willetts nonexecutive director
s w gray nonexecutive 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 £54 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 environmentallyfriendly elemental chlorine  
free ecf wood pulp sourced from wellmanaged sustainable forests the  
paper is also biodegradable 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 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 01628 600340
fax 44 01628 600345
wwwashleyhouseplccom
ashley house plc report and accounts 2010


Summary:
 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 £74m 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 1650 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£15m 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 reenforcing our belief that our business will benefit 
from the continuing shift of care from secondary to community 
and gpled 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 outperformance 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 £387m to 
£460m 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