Formation Group Plc - Final Results PR Newswire

Formation Group Plc

(“Formation” or the “Company”)

Final Results

Chairman’s Statement

I am pleased to present the annual result for the Company for the twelve month period to 31 August 2018.

The year ended 31 August 2018 saw Formation work on existing construction projects, but it did not initiate any 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 throughout the reporting period.

The Group spent much of the year completing existing projects, and revenues have increased this year from £37.011m in 2017 to £38.629m in 2018. Despite the increase in turnover and an operating profit prior to exceptional items of £0.034m, the Company has seen a loss for the year of £0.284m (2017 loss £0.152m) partly as a result of the inclusion of a provision of £0.318m in the balance sheet of Formation Construction Limited related to an accident on one of the Company’s construction sites in 2015.

The Group is pleased with its investment in Proton Partners International Limited(“PPI”).  PPI has successfully opened a treatment centre in Wales with further centres nearing completion in the UK.

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 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 2018


                                                             2018       2017

                                                            £’000      £’000

Continuing operations

Turnover                                                    38,629     37,011

Cost of sales                                              -37,674    -34,835

                                                          __________ __________

Gross profit                                                 955       2,176

Administrative expenses                                     -1,371     -2,283

                                                          __________ __________

Operating loss on ordinary activities before investment      -416       -107
income, interest and taxation

Finance income                                                -         -33

Finance costs                                                 -         -12

Gain on financial assets at fair value through profit and    450         -
loss account

                                                          __________ __________

Profit/(loss) on ordinary activities before exceptional       34        -152
items and taxation

Exceptional item                                             -318        -

                                                          __________ __________

Loss on ordinary activities before taxation                  -284       -152

Taxation                                                      -          -

                                                          __________ __________

Loss for the year                                            -284       -152

                                                           ________   ________

Attributable to:

                                                          __________ __________

Equity holders of the parent                                 -284       -152

                                                           ________   ________

Earnings per share

From continuing operations before exceptional items

Basic                                                       0.08p     (0.34)p

From continuing operations after exceptional items

Basic                                                      (0.64)p    (0.34)p



   


Loss for the year                                    (284)       (152)

                                                  ___________ ___________

Total comprehensive Income for the financial year    (284)       (152)

                                                  __________   _________

Attributable to:

Equity holders of the parent

Continued operations                                 (284)       (152)

                                                   _________   _________

                                                     (284)       (152)

                                                   _________   _________



Consolidated statement of financial position

As at 31 August 2018


                                                  2018       2017

                                                 £’000      £’000

Fixed Assets

Tangible Assets                                    14         21

Investment Property                               275        275
Investments                                      5,000        -

                                               __________ __________

                                                 5,289       296

                                               __________ __________

Current assets


Inventories                                       156       1,406
Debtors                                          9,949      7,525

Cash at bank and in hand                          746       4,229

                                               __________ __________

                                                 10,851     13,160

                                               __________ __________

Current liabilities

Creditors: Amounts falling due within one year

Creditors                                       (5,878)    (3,227)

                                               __________ __________

Total current liabilities                       (5,878)    (3,227)

Net current assets                               4,973      9,933

                                               __________ __________

Total assets less current liabilities            10,261     10,229

Provision for liabilities                         318         -

                                               __________ __________

Net assets                                       9,945      10,229

                                               __________ __________



   


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            5,101      5,835

Fair value reserve            450         -

                           __________ __________

Total shareholders’ funds    9,945      10,229

                           __________ _________



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.

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

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