FRM Formation Grp

24 May 2019

FORMATION GROUP PLC

('Formation', or the 'Company'; together with its subsidiaries, the ‘Group’))

Unaudited Interim Results for the six months ended 28 February 2019

Director's Statement

I am pleased to report the Group's results for the six months ended 28 February 2019.

Revenue for the 6 months ended 28 February 2019 of GBP 14.9 m was 15% lower than the GBP 17.2m generated in the same period last year.  This resulted in a gross profit of GBP 0.5m for the period (2018: GBP 0.9m), a fall of 45%. Administrative costs, which are relatively fixed in nature, were lower than the prior year at GB P0.6m (2018: GBP 1.1m). As a result, the group posted a loss for the period of GBP0.1m compared to a loss of GBP 0.3m for the same period in 2018.

The Directors continue to pursue opportunities for new projects and new clients in order to grow revenues.

David Kennedy
24 May 2019

Unaudited consolidated income statement
For the six months ended 28 February 2019

Unaudited consolidated statement of financial position
As at 28 February 2019

Notes to the unaudited financial information

1. Basis of preparation

The financial information set out in this unaudited interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 August 2018, prepared under FRS 102, have been filed with the Registrar of Companies. The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

The unaudited interim financial information has been prepared in accordance with the recognition and measurement principles of FRS 102 and on the same basis and using the same accounting policies as used in the financial statements for the year ended 31 August 2018. The interim financial statements have not been audited or reviewed in accordance with the International Standard on Review Engagement 2410 issued by the Auditing Practices Board.

2. Turnover

For management purposes, the Group is organised into different segments being professional construction services and development operations. All turnover is generated in the United Kingdom.

Turnover analysed by category was as follows:

3. Exceptional Item

Included in the 2018 audited accounts is a provision of £0.318m in relation to a judgement passed by the court to Formation Construction Limited (FCL).  This liability is the sole obligation of FCL, with no recourse to the remainder of the group.

4. Earnings per share

The calculation of basic and diluted loss per share is based on the following losses and numbers of shares:                  

Profit per share is calculated by dividing the profit for the period attributable to equity shareholders by the weighted average number of shares in issue during the period.

5. Inventories      

The inventory is held at the lower of cost and estimated selling price. There has been no impairment of inventories or amounts recognised in the income statement during the period.

6. Contingent liability note

On 4 November 2015, the Health and Safety Executive began an investigation into Formation Construction Limited (FCL) following an accident on one FCL’s construction sites on that date.  Prosecution by the Health and Safety Executive against FCL has now concluded and the financial impact of the court case was provided for in the 2018 audited accounts, as referenced in note 3 above.

The Directors of the Company accept responsibility for the contents of this announcement.

--ENDS--

Enquiries:

Market Abuse Regulation (MAR) Disclosure

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. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.