A good update today from Formation and solid foundations in place for future growth IMHO,......GL S
On 30(th) May 2014, the Group announced my appointment as Chairman, replacing David Kennedy in the role of Chairman. Group revenues continue to increase year on year with an uplift of 36% this year from GBP5.85m to GBP7.94m on the back of an increasing workload driven by the current strong London property market. It is expected that revenue will grow over the coming financial year with various work contracts in place and further commitments anticipated over the coming months.
Whilst this year has seen a loss of GBP0.52m (2013 loss: GBP0.41m) there has been an improvement in the Group's underlying financial performance following years of Sport related problems and restructuring as previously documented. The loss for the year from discontinued operations of GBP0.4m relates largely to a write down of the Bradford and Bristol properties to fair value. The continuous efforts of the Directors and management in this regard over the years are now showing through financially. The Group is now solely focused on Property activities which includes property development for the first time as per the RNS publications of the 11th April 2014 and 10th October 2014 regarding the purchase of the Iverson Road Site.
An RNS on the 21st March 2014, Formation was informed by Julius Properties Limited had resolved its legal dispute with Redrow Homes Limited over a title issue relating to the property at No 1 Commercial Street, London E1 and would be in full receipt of the majority of the funds by June 2014. Formation Group Plc announced by further RNS publications on the 11th April and 13th May 2014 that it had received the sum of GBP1.59m in part payment of its Aldgate Investment Funds. Formation Group Plc is confident it can source additional funds as and when viable investment opportunities are found.
The Chief Executive Officer's Report provides further detail on the individual projects, companies and properties within the Group at present.
The Group has added and will continue to add to the experienced base of construction and property personnel it has in order to meet its increasing contract commitments. It looks forward to utilising this experience to its advantage over the coming year. It is anticipated that access to future cash incomes and an improving credit rating for banking purposes will also allow the Group to drive further improvements, generate profits and enhance shareholder value.
The Board and Staff
I am pleased to report that The Group is now fully focused on property development and construction activities for the first time in its history. I would like to thank all board members and staff for the enormous efforts and dedicated contributions they have made over the past few difficult years in getting the business to where it now is, problem free and with a strong focus for the future.
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