Formation Group Plc - Half-year Report

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

	Note	6 Months ended 29 Feb 2020 (Unaudited)	6 Months ended 28 Feb 2019 (Unaudited)	Year ended 31 Aug 2019 (Audited)
		£’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 expenses		(405)	(605)	(1,188)
		__________	__________	__________
Operating profit/(loss) from continuing operations		175	(137)	(443)
Gain on financial asset at fair value through profit and loss account		766	-	1,281
		__________	__________	__________
(Loss)/profit on ordinary activities before exceptional item and taxation		941	(137)	838
Exceptional Item		-	-	434
		__________	__________	__________
(Loss)/profit on ordinary activities before taxation Taxation		941 (130)	(137) -	1,272 (294)
		__________	__________	__________
(Loss)/profit for the period		811	(137)	978
		__________	__________	__________
Attributable to:
		__________	__________	__________
Equity holders of the parent		811	(137)	978
		__________	__________	__________
(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 Feb 2020 (Unaudited)	6 Months ended 28 Feb 2019 (Unaudited)	Year ended 31 Aug 2019 (Audited)
		£’000	£’000	£’000
Fixed Assets
Tangible Assets		89	10	99
Investment Property		275	275	275
Investments		5,000	5,000	5,000
Investments in Joint Ventures		10,000	-	-
		__________	__________	__________
		15,364	5,285	5,374
		__________	__________	__________
Current assets
Inventories Debtors	4	- 7,672	156 6,274	69 7,965
Cash at bank and in hand		5,180	3,051	16,244
		__________	__________	__________
		12,852	9,481	24,278
		__________	__________	__________
Current liabilities
Creditors: Amounts falling due within one year
Creditors		(6,057)	(4,958)	(8,435)
		__________	__________	__________
Total current liabilities		(6,057)	(4,958)	(8,435)
Net current assets		6,795	4,523	15,843
		__________	__________	__________
Total assets less current liabilities Deferred Tax		22,159 (424)	9,808 -	21,217 (294)
		__________	__________	__________
Net assets		21,735	9,808	20,923
		__________	__________	__________
Shareholders’ funds
Share capital		8,690	2,205	8,690
Share premium account		5,621	2,106	5,621
Capital redemption reserve		62	61	61
Share option reserve		22	22	22
Retained earnings Fair value reserve		5,267 2,073	4,964 450	5,092 1,437
		__________	__________	__________
Total shareholders’ funds		21,735	9,808	20,923
		__________	__________	__________

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 2020 (Unaudited)	6 Months ended 28 Feb 2019 (Unaudited)	Year ended 31 Aug 2019 (Audited)
	£’000	£’000	£’000
Professional construction services	17,068	14,864	35,526
	__________	__________	__________
	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 29 Feb 2020 (Unaudited)	6 Months ended 28 Feb 2019 (Unaudited)	Year ended 31 Aug 2019 (Audited)
Basic earnings before exceptional items			175	(137)	509
Basic profit after exceptional items			811	-	978
			__________	__________	__________
Basic and diluted profit – continuing and discontinued operations			811	(137)	978
			__________	__________	__________
			Number of 5p shares	Number of 5p shares	Number of 5p 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 Feb 2020 (Unaudited)	6 Months ended 28 Feb 2019 (Unaudited)	Year ended 31 Aug 2019 (Audited)
	£’000	£’000	£’000
Work in progress & stock of properties	-	156	69
	__________	__________	__________

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 Noel O’Carroll - Director	Tel: [phone]
Peterhouse Capital Limited (AQSE Corporate Adviser) Mark Anwyl and Allie Feuerlein	Tel: [phone]

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.

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