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