Formation Group Plc - Final Results PR Newswire

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR").

31 January 2020

FORMATION GROUP PLC
('Formation' or the 'Company')

Audited Results for the year ended 31 August 2019

Chairman’s Statement

I am pleased to present the annual result for the Company for the year ended 31 August 2019.

The year ended 31 August 2019 saw the Group continue to work on existing construction projects whilst also adding to the pipeline of work by winning one new external contract. The more cautious investment activity is predominantly due to the uncertainty of the UK economy, both before and after the ‘Brexit’ referendum, and the uncertainty caused by the delay of the UK leaving the EU.  House prices in London, the Group’s key market, have also been volatile throughout the reporting period.

The Group spent much of the year completing existing projects, and revenues have decreased this year from £39.789m in 2018 to £35.526m in 2019.  The Group has an Operating loss before fair value changes for the year of £0.009m (2018: £0.734m)

Every effort is being made to source further development and investment opportunities and the Group is continuing to seek out new opportunities.  Notable progress in the year included the Group being appointed as contractor for a residential led scheme in North London.

In June 2019 the Group raised £10 million in additional share capital and as announced in December 2019 this has now been invested into Irish development projects.

The Group has added and will continue to add to its experienced base of construction personnel to drive the Company forward. 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 2019


                                                               2019     2018

                                                               £’000    £’000

Continuing operations

Turnover                                                       35,526   39,789

Cost of sales                                                  (34,781) (38,834)

                                                               ________ ________

Gross profit                                                   745      955

Administrative expenses                                        (1,188)  (1,371)

Gain on liquidation of subsidiaries – exceptional item         684      -

Cost of settled litigation – exceptional item                  (250)    (318)

                                                               ________ ________

Operating loss on ordinary activities before fair value
movements investment income, interest and taxation             (9)      (734)

Gain on financial assets at fair value through profit or loss
account                                                        1,281    450

                                                               ________ ________

Profit / (loss) on ordinary activities before taxation         1,272    (284)

Taxation                                                       (294)    -

                                                               ________ ________

Profit / (loss) for the year                                   978      (284)

                                                               ________ ________

Earnings / (loss) per share

From continuing operations before exceptional items

Basic and diluted                                              0.71p    0.08p

From continuing operations after exceptional items

Basic and diluted                                              1.28p    (0.64)p



   


                                                    2019     2018

                                                   £’000    £’000

Profit / (loss) for the year                        978     (284)

                                                  ________ ________

Total comprehensive Income for the financial year   978     (284)

                                                  ________ ________



Consolidated statement of financial position
As at 31 August 2019


                                                  2019     2018

                                                 £’000    £’000

Fixed Assets

Tangible Assets                                    99       14

Investment Property                               275      275
Investments                                      5,000    5,000

                                                ________ ________

                                                 5,374    5,289

                                                ________ ________

Current assets

Inventories                                        69      156
Debtors                                          7,965    12,461

Cash at bank and in hand                         16,244    746

                                                ________ ________

                                                 24,278   13,363

                                                ________ ________

Current liabilities

Creditors: Amounts falling due within one year

Creditors                                       (8,435)  (8,390)

                                                ________ ________

Total current liabilities                       (8,435)  (8,390)

                                                ________ ________

Net current assets                               15,843   4,973

                                                ________ ________

Total assets less current liabilities            21,217   10,261

Deferred tax                                     (294)

Provision for liabilites                           -      (318)

                                                ________ ________

Net assets                                       20,923   9,945

                                                ________ ________



The financial information contained in this announcement 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 the contents of this announcement.

--ENDS--

Enquiries:


Formation Group plc                            Tel: +44 (0) 20 7920 7590
Noel O’Carroll - Director

Peterhouse Capital Limited (Corporate Adviser) Tel: +44 (0) 20 7469 0934
Mark Anwyl