Formation Group PLC Trading Update (2323B)

TIDMFRM

RNS Number : 2323B

Formation Group PLC

05 October 2015

Formation Group PLC

("Formation" or the "Company")

Trading update

On 29 May 2015 Formation published its unaudited interim results for the six months ended 28 February 2015. Included within the Company's consolidated balance sheet were loans in relation to two subsidiaries, FG (Bradford) Limited and FG (Bristol) Limited, amounting to, in aggregate, GBP4.331 million, which were secured against two properties.

The directors of Formation are pleased to announce that the Company has now disposed of these properties which were held under a non-recourse funding agreement with Dunbar Assets Plc. The consideration received on the sale of both properties, net of sale costs, will be utilised to settle in full the loan liability referred to above. The directors of Formation anticipate that this will have the net positive effect to the Company's balance sheet of a write-back on the loans of approximately GBP1.05m.

Formation's financial year ended on 31 August 2015 and the Company hopes to publish its audited accounts for this period by 31 January 2016

FOR FURTHER INFORMATION PLEASE CONTACT:

Formation Group Plc

   David Kennedy - Chief Executive Officer                                             020 7920 7590 

Northland Capital Partners Limited - Nominated Adviser

William Vandyk / Gerry Beaney 020 7382 1100

Peterhouse Corporate Finance Limited - Broker

Duncan Vasey / Fungai Ndoro 020 7469 0930

This information is provided by RNS

The company news service from the London Stock Exchange

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October 05, 2015 07:00 ET (11:00 GMT)