Formation Group Plc - Final Results

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 income, interest and taxation	-416	-107
Finance income	-	-33
Finance costs	-	-12
Gain on financial assets at fair value through profit and loss account	450	-
	__________	__________
Profit/(loss) on ordinary activities before exceptional items and taxation	34	-152
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 Investments	275 5,000	275 -
	__________	__________
	5,289	296
	__________	__________
Current assets
Inventories Debtors	156 9,949	1,406 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

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