Formation Group Plc - Final Results for Year Ended 30 September 2017 PR Newswire

Formation Group Plc
(“Formation” or the “Company”)

Final Results for Year Ended 30 September 2017

Chairman’s Statement

I am pleased to present the annual result for the Company for the twelve-month period to 31 August 2017.

The year ended 31 August 2017 saw Formation work on existing construction projects, and initiate new larger projects during the latter part of the year. The more cautious investment activity is predominantly due to the uncertainty of the UK economy, both before and after the ‘Brexit’ referendum. House prices in London, the Group’s key market, have been volatile though the reporting period.

The Group spent much of the year completing existing projects, and revenues have increased 26% this year from £29.410m in 2016 to £37.011m in 2017. Revenue has mainly been generated from projects initiated in 2016. As a result, and despite the increase in turnover, the Company has produced an operating loss this year of £0.107m (2016 profit £0.733m).

The finance income item of £0.33m relates to an adjustment to income recognised from the profit share in relation to a development property at Norwich House, 9-19 Streatham High Road.  The total amounts due by Sunbel Development Limited in relation to the profit share agreement, were repaid in February 2017. The loss on ordinary activities, before taxation was £0.152m (2016 profit of £2.157m). The reduction in this figure from last year is reflective of the conclusion of the Norwich House profit share agreement.

Every effort is being made to source further development and investment opportunities, and the Group is continuing to seek out new opportunities.

The Group has added and will continue to add to the experienced base of construction personnel.

The Board and Staff

I would like to thank all board members and staff for the enormous efforts and dedicated contributions they have made during the year. I would also like to thank our shareholders for their continued trust and confidence in the Board and in my leadership as Chairman.

William O’Dea
Non-Executive Chairman

Consolidated income statement
For the year ended 31 August 2017


                                                             2017       2016

                                                          GBP’000    GBP’000

Continuing operations

Turnover                                                   37,011     29,410

Cost of sales                                            (34,835)   (26,488)

                                                       __________ __________

Gross profit                                                2,176      2,922

Administrative expenses                                   (2,283)    (2,189)

                                                       __________ __________

Operating (loss) / profit from continuing operations        (107)        733

Finance income                                               (33)      1,424

Finance costs                                                (12)          -

                                                       __________ __________

(Loss) / Profit on ordinary activities before taxation      (152)      2,157

Taxation                                                        -      (394)

                                                       __________ __________

(Loss) /Profit for the year from continuing operations      (152)      1,763

Discontinued operations

Profit for the year from discontinued operations                -      1,022

                                                       __________ __________

(Loss) / Profit for the year                                (152)      2,785

                                                       __________ __________

Attributable to:

                                                       __________ __________

Equity holders of the parent                                (152)      2,785

                                                       __________ __________

Earnings per share

From continuing operations

Basic and diluted                                         (0.34)p      0.79p

From discontinued operations

Basic and diluted                                               -      0.46p

From continuing and discontinued operations

Basic and diluted                                         (0.34)p      1.25p



   


                                                         2017        2016

                                                      GBP’000     GBP’000

(Loss) / Profit for the year                            (152)       2,785

                                                  ___________ ___________

Total comprehensive Income for the financial year       (152)       2,785

                                                  ___________ ___________

Attributable to:

Equity holders of the parent

Continued operations                                    (152)       1,763

Discontinued operations                                     -       1,022

                                                  ___________ ___________

                                                        (152)       2,785

                                                  ___________ ___________



Consolidated statement of financial position
As at 31 August 2017


                                                     2017       2016

                                                    £’000      £’000

Fixed Assets

Tangible Assets                                        21         22

Investment Property                                   275        275

                                               __________ __________

                                                      296        297

                                               __________ __________

Current assets

Inventories                                         1,406      7,245
Debtors                                             7,525      9,888

Cash at bank and in hand                            4,229        330

                                               __________ __________

                                                   13,160     17,463

                                               __________ __________

Current liabilities

Creditors: Amounts falling due within one year

Creditors                                         (3,227)    (4,065)

Bank loans                                              -    (3,314)

                                               __________ __________

Total current liabilities

Net current assets                                  9,933     10,084

                                               __________ __________

Total assets less current liabilities              10,229     10,381

                                               __________ __________

Net assets                                         10,229     10,381

                                               __________ __________



   


                                 2017       2016

                              GBP’000    GBP’000

Shareholders’ funds

Share capital                   2,205      2,205

Share premium account           2,106      2,106

Capital redemption reserve         61         61

Share option reserve               22         22

Retained earnings               5,835      5,987

                           __________ __________

Total shareholders’ funds      10,229     10,381

                           __________ __________



Changes to Accounting Standards

Following the Group’s move from AIM to NEX Exchange, the Group and the Company have moved from IFRS to the UK’s FRS102 because FRS102 is deemed more suitable for the Group and is used by its subsidiaries. No adjustments have been necessary to the carrying values included within these financial statements or their comparatives because of this change. There are no significant differences between IFRS and UK FRS102.

The financial information contained in this statement has been extracted from the full audited accounts of the Company.

The Directors do not propose a dividend for the period reported.

The Directors of the Company accept responsibility for this announcement.

--ENDS—


Enquiries:

Formation Group Plc
David Kennedy; Chief Executive Officer
020 7920 7590

NEX Exchange Corporate Adviser
Peterhouse Corporate Finance Limited
Fungai Ndoro and Mark Anwyl
020 7469 0930