Formation Group Plc - Half-year Report PR Newswire

29 May 2020
 

FORMATION GROUP PLC
('Formation', or the 'Company'; together with its subsidiaries, the ‘Group’)

Unaudited Interim Results for the six months ended 29 February 2020

Director's Statement

I am pleased to report the Group's results for the six months ended 29 February 2020.

Revenue for the 6 months ended 29 February 2020 of GBP 17.1 m was 14.76% higher than the GBP 14.9m generated in the same period last year.  This resulted in a gross profit of GBP 0.6m for the period (2019: GBP 0.5m), an increase of 20%. Administrative costs, which are relatively fixed in nature, further declined and were lower than the prior year at GBP 0.4m (2019: GBP 0.6m). As a result, the group posted a profit from continuing operations for the period of GBP 0.2m compared to a loss of GBP 0.1m for the same period in 2019.

The Directors continue to pursue opportunities for new projects and new clients in order to grow revenues.

David Kennedy


Unaudited consolidated income statement
For the six months ended 29 February 2020


                         6 Months ended 29 6 Months ended 28 Year ended 31 Aug
                    Note         Feb 2020          Feb 2019     2019 (Audited)
                               (Unaudited)       (Unaudited)

                                     £’000             £’000             £’000

Continuing
operations

Turnover             2              17,068            14,864            35,526

Cost of sales                     (16,488)          (14,396)          (34,781)

                         __________        __________        __________

Gross profit                           580               468               745

Administrative                       (405)             (605)           (1,188)
expenses

                                __________        __________        __________

Operating profit/
(loss) from
continuing                             175             (137)             (443)
operations

Gain on financial
asset at fair value
through profit and                     766                 -             1,281
loss account

                                __________        __________        __________

(Loss)/profit on
ordinary activities
before exceptional                     941             (137)               838
item and taxation


Exceptional Item                         -                 -               434

                                __________        __________        __________

(Loss)/profit on
ordinary activities                    941             (137)             1,272
before taxation
                                     (130)                 -             (294)
Taxation

                                __________        __________        __________

(Loss)/profit for                      811             (137)               978
the period

                                __________        __________        __________

Attributable to:

                                __________        __________        __________

Equity holders of                      811             (137)               978
the parent

                                __________        __________        __________

(Loss)/earnings per
share

From continuing
operations

Basic and diluted   3               0. 47p           (0.31)p             0.71p

From continuing and
discontinued
operations

Basic and diluted   3                0.47p           (0.31)p             1.28p




Unaudited consolidated statement of financial position
As at 29 February 2020


                    Note 6 Months ended 29 6 Months ended 28 Year ended 31 Aug
                                 Feb 2020          Feb 2019     2019 (Audited)
                               (Unaudited)       (Unaudited)

                                     £’000             £’000             £’000

Fixed Assets

Tangible Assets                         89                10                99

Investment Property                    275               275               275

Investments                          5,000             5,000             5,000

Investments in                      10,000                 -                 -
Joint Ventures

                                __________        __________        __________

                                    15,364             5,285             5,374

                                __________        __________        __________

Current assets


Inventories          4                   -               156                69
Debtors                              7,672             6,274             7,965

Cash at bank and in                  5,180             3,051            16,244
hand

                                __________        __________        __________

                                    12,852             9,481            24,278

                                __________        __________        __________

Current liabilities

Creditors: Amounts
falling due within
one year

Creditors                          (6,057)           (4,958)           (8,435)

                                __________        __________        __________

Total current                      (6,057)           (4,958)           (8,435)
liabilities

Net current assets                   6,795             4,523            15,843

                                __________        __________        __________

Total assets less                   22,159             9,808            21,217
current liabilities
                                     (424)                 -             (294)
Deferred Tax

                                __________        __________        __________

Net assets                          21,735             9,808            20,923

                                __________        __________        __________

Shareholders’ funds

Share capital                        8,690             2,205             8,690

Share premium                        5,621             2,106             5,621
account

Capital redemption                      62                61                61
reserve

Share option                            22                22                22
reserve

Retained earnings                    5,267             4,964             5,092
Fair value reserve                   2,073               450             1,437

                                __________        __________        __________

Total shareholders’                 21,735             9,808            20,923
funds

                                __________        __________        __________




Notes to the unaudited financial information

1.    Basis of preparation

The financial information set out in this unaudited interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 August 2019, prepared under FRS 102, have been filed with the Registrar of Companies. The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

The unaudited interim financial information has been prepared in accordance with the recognition and measurement principles of FRS 102 and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 August 2019. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.


2.    Turnover

For management purposes, the Group is organised into different segments being professional construction services and development operations. All turnover is generated in the United Kingdom.

Turnover analysed by category was as follows:


             6 Months ended 29 Feb 6 Months ended 28 Feb Year ended 31 Aug
                  2020 (Unaudited)      2019 (Unaudited)    2019 (Audited)

                             £’000                 £’000             £’000

Professional                17,068                14,864            35,526
construction
services

                        __________            __________        __________

                            17,068                14,864            35,526

                        __________            __________        __________




3.    Earnings per share

The calculation of basic and diluted loss per share is based on the following losses and numbers of shares:                            


                                 6 Months ended 6 Months ended Year ended 31 Aug
                                   29 Feb 2020    28 Feb 2019     2019 (Audited)
                                    (Unaudited)    (Unaudited)

Basic earnings before                       175          (137)               509
exceptional items

Basic profit after exceptional              811              -               978
items

                                     __________     __________        __________

Basic and diluted profit –
continuing and discontinued                 811          (137)               978
operations

                                     __________     __________        __________


                                   Number of 5p   Number of 5p      Number of 5p
                                         shares         shares            shares

                                           ’000           ’000              ’000

Weighted average
number of
shares:

Basic                                   173,800         44,103            76,525

Diluted                                 173,800         44,103            76,525

                                     __________     __________        __________



Profit per share is calculated by dividing the profit for the period attributable to equity shareholders by the weighted average number of shares in issue during the period.


4.     Inventories


                       6 Months ended 29 6 Months ended 28 Feb Year ended 31 Aug
                    Feb 2020 (Unaudited)      2019 (Unaudited)    2019 (Audited)

                                   £’000                 £’000             £’000

Work in progress &                     -                   156                69
stock of properties

                              __________            __________        __________



The inventory is held at the lower of cost and estimated selling price. There has been no impairment of inventories or amounts recognised in the income statement during the period.
 

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 (AQSE Corporate Adviser) Tel: +44 (0) 20 7469 0934
Mark Anwyl and Allie Feuerlein



Market Abuse Regulation (MAR) Disclosure
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. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.