Ashley House, the health and community care property partner, announced an adjusted loss before taxation of £1.8m for the six months ended 31 October 2017.
The loss comes amid a fall in revenue to £7.0m (2015/6: £10.7m) and a rise in net debt to £3.5m (2016: £2.4m). Net debt, however, was said to have decreased since the period end.
The company noted two key operating highlights expected to support profit, including a joint venture established with Morgan Sindall Investments to grow and deliver the Housing pipeline.
While the government's decision to make housing the centre piece of the last budget and relaxed its plans to cap housing benefit to Local Housing Allowance rates was cited as a supportive factor.
'As previously signalled, the Company showed a loss for the period to 31 October 2017,' said Christopher Lyons, Chairman.
'In the last couple of months the removal of the threat of the LHA cap along with the establishment of the joint venture with Morgan Sindall were key events for the future of the Company enabling it to press forward in the growth and delivery of its significant housing pipeline as well as the other activity in the business.'
At 9:34am: (LON:ASH) Ashley House PLC share price was +0.5p at 12.25p