Formation Group Plc - Final Results for Year Ended 30 September 2017

Formation Group Plc
(“Formation” or the “Company”)

Final Results for Year Ended 30 September 2017

Chairman’s Statement

I am pleased to present the annual result for the Company for the twelve-month period to 31 August 2017.

The year ended 31 August 2017 saw Formation work on existing construction projects, and initiate 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 though the reporting period.

The Group spent much of the year completing existing projects, and revenues have increased 26% this year from £29.410m in 2016 to £37.011m in 2017. Revenue has mainly been generated from projects initiated in 2016. As a result, and despite the increase in turnover, the Company has produced an operating loss this year of £0.107m (2016 profit £0.733m).

The finance income item of £0.33m relates to an adjustment to income recognised from the profit share in relation to a development property at Norwich House, 9-19 Streatham High Road.  The total amounts due by Sunbel Development Limited in relation to the profit share agreement, were repaid in February 2017. The loss on ordinary activities, before taxation was £0.152m (2016 profit of £2.157m). The reduction in this figure from last year is reflective of the conclusion of the Norwich House profit share agreement.

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 the experienced base of construction personnel.

The Board and Staff

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 2017

	2017	2016
	GBP’000	GBP’000
Continuing operations
Turnover	37,011	29,410
Cost of sales	(34,835)	(26,488)
	__________	__________
Gross profit	2,176	2,922
Administrative expenses	(2,283)	(2,189)
	__________	__________
Operating (loss) / profit from continuing operations	(107)	733
Finance income	(33)	1,424
Finance costs	(12)	-
	__________	__________
(Loss) / Profit on ordinary activities before taxation	(152)	2,157
Taxation	-	(394)
	__________	__________
(Loss) /Profit for the year from continuing operations	(152)	1,763
Discontinued operations
Profit for the year from discontinued operations	-	1,022
	__________	__________
(Loss) / Profit for the year	(152)	2,785
	__________	__________
Attributable to:
	__________	__________
Equity holders of the parent	(152)	2,785
	__________	__________
Earnings  per share
From continuing operations
Basic and diluted	(0.34)p	0.79p
From discontinued operations
Basic and diluted	-	0.46p
From continuing and discontinued operations
Basic and diluted	(0.34)p	1.25p

   

	2017	2016
	GBP’000	GBP’000
(Loss) / Profit for the year	(152)	2,785
	___________	___________
Total comprehensive Income for the financial year	(152)	2,785
	___________	___________
Attributable to:
Equity holders of the parent
Continued operations	(152)	1,763
Discontinued operations	-	1,022
	___________	___________
	(152)	2,785
	___________	___________

Consolidated statement of financial position
As at 31 August 2017

	2017	2016
	£’000	£’000
Fixed Assets
Tangible Assets	21	22
Investment Property	275	275
	__________	__________
	296	297
	__________	__________
Current assets
Inventories Debtors	1,406 7,525	7,245 9,888
Cash at bank and in hand	4,229	330
	__________	__________
	13,160	17,463
	__________	__________
Current liabilities
Creditors: Amounts falling due within one year
Creditors	(3,227)	(4,065)
Bank loans	-	(3,314)
	__________	__________
Total current liabilities
Net current assets	9,933	10,084
	__________	__________
Total assets less current liabilities	10,229	10,381
	__________	__________
Net assets	10,229	10,381
	__________	__________

   

	2017	2016
	GBP’000	GBP’000
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	5,835	5,987
	__________	__________
Total shareholders’ funds	10,229	10,381
	__________	__________

Changes to Accounting Standards

Following the Group’s move from AIM to NEX Exchange, the Group and the Company have moved from IFRS to the UK’s FRS102 because FRS102 is deemed more suitable for the Group and is used by its subsidiaries. No adjustments have been necessary to the carrying values included within these financial statements or their comparatives because of this change. There are no significant differences between IFRS and UK FRS102.

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.

--ENDS—

Enquiries:

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

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

 

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