(Correcting an item published at 10:29 GMT February 28 2014 which misstated a profit figure. The correct version follows)
LONDON (Alliance News) - Shares in Formation Group PLC have jumped Friday after the firm reported a 148% rise in group revenues as the London property market continues to strengthen.
Formation said group revenues were boosted to GBP5.8 million from GBP2.4 million, a 148% rise, attributed to an increasing workload driven by the current strong London property market.
This is after allowing for the share of joint venture profits of GBP1.2 million last year, Formation said.
Despite a huge rise in revenues, the group continues to focus on cutting overheads in order to ensure a lean cost base, it said, with its full-year numbers resulting in a loss before taxation and exceptional items from continuing operations of GBP0.24 million, narrowed from a GBP0.54 million loss in 2012. "The Directors believe that that is a better comparison of year on year results as it omits the exceptional one off item (being the share of joint venture profits) for the year ended 31 August 2012," said Formation.
Pretax profit for the year came in at a GBP387,000 loss, down from GBP528,000 profit last year.
During the year the firm said it received net proceeds received from profit share in Whitechapel of GBP413,000 which was used to reduce the working capital loan.
The firm has been unable to pay a dividend to shareholders for the last five years, noting that, "whilst we have strengthened our position in this regard, trading and cash resources remain weak, hence the directors, have decided not to pay a shareholders dividend," adding that this decision will continue to be reviewed.
Following a demanding year for the firm, the primary focus of the Group now remains on consolidation and the property sector, said Formation.
David Kennedy, Formation's interim chairman said, "A strong base of experienced construction and property personnel is retained within the Group. It looks forward to utilizing 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."
Formation shares were up 15% at 1.38 pence per share, one of the biggest gainers on AIM Friday.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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