The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
31 January
2020
FORMATION GROUP PLC
('Formation' or the 'Company')
Audited Results
for the year ended 31 August 2019
Chairman’s Statement
I am pleased to present the annual result for the Company for
the year ended 31 August 2019.
The year ended 31 August 2019 saw the Group continue
to work on existing construction projects whilst also adding to the
pipeline of work by winning one new external contract. The more
cautious investment activity is predominantly due to the
uncertainty of the UK economy, both before and after the ‘Brexit’
referendum, and the uncertainty caused by the delay of the UK
leaving the EU. House prices in London, the Group’s key market, have also been
volatile throughout the reporting period.
The Group spent much of the year completing existing projects,
and revenues have decreased this year from £39.789m in 2018 to
£35.526m in 2019. The Group has an Operating loss before fair
value changes for the year of £0.009m (2018: £0.734m)
Every effort is being made to source further development and
investment opportunities and the Group is continuing to seek
out new opportunities. Notable progress in the year included
the Group being appointed as contractor for a residential led
scheme in North London.
In June 2019 the Group raised £10
million in additional share capital and as announced in
December 2019 this has now been
invested into Irish development projects.
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 2019
|
|
|
|
|
|
2019 |
2018 |
|
|
£’000 |
£’000 |
| Continuing
operations |
|
|
|
| Turnover |
|
35,526 |
39,789 |
| Cost of sales |
|
(34,781) |
(38,834) |
|
|
________ |
________ |
| Gross profit |
|
745 |
955 |
|
|
|
|
| Administrative
expenses |
|
(1,188) |
(1,371) |
| Gain on liquidation of
subsidiaries – exceptional item |
|
684 |
- |
| Cost of settled
litigation – exceptional item |
|
(250) |
(318) |
|
|
________ |
________ |
| Operating loss on
ordinary activities before fair value movements investment income,
interest and taxation |
|
(9) |
(734) |
|
|
|
|
| Gain on financial
assets at fair value through profit or loss account |
|
1,281 |
450 |
|
|
________ |
________ |
| Profit / (loss) on
ordinary activities before taxation |
|
1,272 |
(284) |
|
|
|
|
| Taxation |
|
(294) |
- |
|
|
________ |
________ |
| Profit / (loss) for the
year |
|
978 |
(284) |
|
|
________ |
________ |
|
|
|
|
| Earnings / (loss) per
share |
|
|
|
| From continuing
operations before exceptional items |
|
|
|
| Basic and diluted |
|
0.71p |
0.08p |
|
|
|
|
|
|
|
|
| From continuing
operations after exceptional items |
|
|
|
| Basic and diluted |
|
1.28p |
(0.64)p |
|
2019 |
2018 |
|
£’000 |
£’000 |
| Profit / (loss) for the year |
978 |
(284) |
|
________ |
________ |
| Total comprehensive Income for the
financial year |
978 |
(284) |
|
________ |
________ |
Consolidated statement of financial position
As at 31 August 2019
|
|
2019 |
2018 |
|
|
£’000 |
£’000 |
| Fixed Assets |
|
|
|
|
|
|
|
| Tangible Assets |
|
99 |
14 |
Investment Property
Investments |
|
275
5,000 |
275
5,000 |
|
|
________ |
________ |
|
|
5,374 |
5,289 |
|
|
________ |
________ |
| Current assets |
|
|
|
|
|
|
|
Inventories
Debtors |
|
69
7,965 |
156
12,461 |
| Cash at bank and in hand |
|
16,244 |
746 |
|
|
________ |
________ |
|
|
24,278 |
13,363 |
|
|
________ |
________ |
| Current liabilities |
|
|
|
|
|
|
|
| Creditors: Amounts falling due
within one year |
|
|
|
| Creditors |
|
(8,435) |
(8,390) |
|
|
________ |
________ |
| Total current liabilities |
|
(8,435) |
(8,390) |
|
|
________ |
________ |
| Net current assets |
|
15,843 |
4,973 |
|
|
________ |
________ |
| Total assets less current
liabilities |
|
21,217 |
10,261 |
|
|
|
|
| Deferred tax |
|
(294) |
|
| Provision for
liabilites |
|
- |
(318) |
|
|
________ |
________ |
| Net assets |
|
20,923 |
9,945 |
|
|
________ |
________ |
|
|
|
|
The financial information contained in this announcement 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 the
contents of this announcement.
--ENDS--
Enquiries:
Formation Group
plc
Noel O’Carroll - Director |
Tel: +44 (0) 20 7920
7590 |
Peterhouse Capital
Limited (Corporate Adviser)
Mark Anwyl |
Tel: +44 (0) 20 7469
0934 |