Formation Group Plc - Final Results
PR Newswire
London, January 31
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
