LONDON (Alliance News) - Property development and project management company Formation Group PLC on Friday said it pretax profit surged and its revenue tripled in the year to the end of August.
The company said its pretax profit for the period was up to GBP2.2 million from a GBP99,000 loss a year earlier, as revenue rose to GBP23.8 million from GBP7.9 million, thanks to an increasing workload from the strength of the London property market.
The profit growth also was driven by income recognised by the company from its profit share agreement with Sunbel Development Ltd and Pinacle Developments Ltd.
Formation said it continues to pursue its developments in the property development sector and expects to make a profit from its Iverson Road development in north west London in the current financial year.
"We have seen a strong appetite from the banks again this year to support development funding, and this, coupled with a buoyant London property market, which we intend to exploit, gives reason for the board to view the future with confidence. We look forward to operating a secure, profitable, capital based property group going forward," said Willie O'Dea, Formation's chairman.
Shares in Formation were down 8.8% to 9.575 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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