LONDON (Alliance News) - Formation Group PLC Wednesday said its pretax loss narrowed in its last financial year, helped by stronger revenue on the back of "increasing workload driven by the current strong London property market".
In a statement, the construction management services and property development firm said it made a GBP99,000 pretax loss from continuing operations in the year ended August 31, compared with GBP387,000 in the corresponding period in the prior year, as revenue grew by 36% to GBP7.9 million.
The company's overall loss, including discontinued operations, widened to GBP520,000 from GBP405,000, a result of a GBP421,000 loss from discontinued operations, largely the result of a write down of its Bradford and Bristol properties to fair value.
"The outlook is promising with a larger order book than last year and the belief that it will continue to grow. The completion of the acquisition of a development site in London by a group subsidiary post year end, and the possibility of investing into further London development opportunities over the coming year offers the potential of a return to profits for the group," David Kennedy, chief executive, said in a statement.
Chairman William O'Dea said revenue is expected to grow over the coming financial year, with various work contracts in place and further commitments anticipated over the coming months.
Formation Group shares were untraded on Wednesday at 1.40 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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