Formation Share Discussion Threads

[threeputt] 06/2/2016 22:35

Link below to the "Ivery" Iverson Road properties, have we sold some already as it was 19+1 properties ?
"Acquisition of this development site by Formation Homes (London) Limited (Group subsidiary) in West Hampstead, London. The site has the benefit of a planning approval for 19 residential units and 1 commercial unit"

[mylands] 06/2/2016 17:46

The AGM is on Monday 29th February. I, for one, am going. Hope othrs come along to make a good showing of small holders.

[crescenter] 05/2/2016 09:05

Trading update with the AGM??

[threeputt] 03/2/2016 10:49

it's called putting the frighteners on to shake a few out, was tempted to buy back the ones i sold just under 12 but I still have 2/3rds of my original holding but wouldn't be surprised if this moves over 12 in time. I'll still be here in a years time I imagine

[mylands] 03/2/2016 10:32

I thought the response to the results was disappointing.

Yes, the shares had risen to new highs but the numbers they came out with and the statement about current trading were both excellent, so to see sellers come out of the woodwork was a surprise, but then in this bear market, perhaps I shouldn't have been!

[barnetpeter] 03/2/2016 10:13

Looks like back to 12p....I was expecting a fall. Wrong again.

Norwich house...wow. Could they make 5 million this year? They did flag up a huge profit increase...more than double.

[mylands] 02/2/2016 15:07

Two of the under offer apartments at Norwich house have now been sold, leaving five under offer and 3 not sold. Good going.

[crescenter] 29/1/2016 11:31

You need to remember that bank loans include £4.3m to Dunbar that has been redeemed in the first half of the year.

The balance sheet as at 29th Feb will give a clearer picture as the last of the baggage will be gone.

[barnetpeter] 29/1/2016 10:40

Yes I agree all in the price....remember this has moved from 2p to 12p in a year. Notice also the 9 million in bank borrowings. I am thinking this will fall away a little now...I can see 6p to 8p.

I def wont be selling myself and will pick up more stock on any weakness.

[crescenter] 29/1/2016 09:39

This news was all in the price.

What I was expecting was news on a further development site.

There is a strong hint of things to come in the Business Highlights:

"We have seen a strong appetite from the banks again this year to support development funding, and this, coupled with a buoyant London property market, which we intend to exploit, "

No doubt the new site will be announced in the next couple of months.

Until then hunker down and hold tight.

[mylands] 29/1/2016 08:37

Lack-lustre response to the figures, bringing out five sales. Bear market syndrome - sell when you have the chance.

[threeputt] 29/1/2016 08:34

Expected results hence a few selling, but the 23/9/15 statement was one of the reasons I bought in here:

"As a result of these developments, the Board is confident that profits for this financial year, ending 31 August 2016, are likely to be substantially in excess of double the £1.75m anticipated in the financial year ended 31 August 2015. It is also anticipated that this exceptionally strong performance will generate sufficient cash for the Company during the forthcoming year to invest in further projects, some of which are already in the process of being appraised."

[bahiflyer] 29/1/2016 08:01

With none of the Iveson rd units included in the latest results it looks even better, especially as they will probably all show up in the current years.

[jamie62] 29/1/2016 07:53

Interesting to see the market reaction... Company looks well set for the future

[mylands] 29/1/2016 07:48

Exellent set of numbers out this morning for the y/e August 2015, ahead of the statement made last October.

Bullish statement regarding the current year. Bodes well for the share price

[crescenter] 22/1/2016 12:00

Results next week then.

Should be interesting.

[mylands] 20/1/2016 09:22

Foxtons now showing another one has gone under offer, which leaves just three not sold/under offer.

Wishful thinking on my part, but wouldn't it be perfect if the remaining three went under offer before the results are announced? A nice positive note for the trading update!

[crescenter] 19/1/2016 11:29

Less than 7 trading days to FY results announcement.

Should be interesting to say the least.

[mylands] 19/1/2016 09:03

barnet

If you are right and there is no tax and the profits are around £3.8million for the y/e August 2016, at the current price of 12p, the company is currently on a prospective p/e of 7.

[mylands] 18/1/2016 13:26

threeput

Both the figures quoted in the September 2015 RNS were forecasts. £1.75 million for the y/e 31st Aug 2015 and above double that for y/e 31st Aug 2016. We will know for sure about 2015 before the end of this month and have a better idea of 2016 with any trading update they release with the annual accounts.

[threeputt] 18/1/2016 11:05

barnet, be careful with confusing 2015 results which we havent had yet with 2016 results which I believe you're forecasting

[barnetpeter] 18/1/2016 10:53

I am expecting £3.8 m profit...no tax.....

[threeputt] 18/1/2016 10:00

barnetpeter, and thats why I started buying from 8 upwards, that was one hell of a statement for 2015 & 2016, and reason mms did a big shake down to 7 recently imo

[mylands] 18/1/2016 09:50

barnetpeter

Let's take this statement from last September as a guide to what the value of the shares should be based upon:

'As a result of these developments, the Board is confident that profits for this financial year, ending 31 August 2016, are likely to be substantially in excess of double the £1.75m anticipated in the financial year ended 31 August 2015.'

Based on this, just double the £1.75million even though they state 'substantially in excess of this for 2016, and you get £3.5 million. Let's take a worst case scenario regarding tax, 20% (with the losses they have racked up over the years, it's likely to be nil), that leaves £2.8 million, or 1.27p/share, a p/e of just over 9, hardly a premium rating.

IMO the current share price is not overvalued at all.

[barnetpeter] 18/1/2016 09:33

yes indeed. very hard to work out a fair price in fact. We just don't know how many projects they are invested in or how much cash the company has. All we know is that they have some major investments in London that seem to be flying off the books plus a stack of cash that keeps on getting returned with more added.

The results will need to be very good to justify this rating but of course they will be because they have said so. Whether the mm's will then try a pullback to try to get back some stock.....vol is not huge but the constant buying of 50,000 net a day must take its toll.