LONDON (Alliance News) - Property development and project management company Formation Group PLC saw its shares trade higher on Friday morning after it reported a surge in revenue in the first half of its financial year which swung it to profit from a loss a year earlier.
Shares in Formation were up 35% to 3.50 pence in early trade, one of the best performers in the AIM All-Share.
Formation Group said its pretax profit for the first half to the end of February was GBP266,000, compared to a GBP173,000 loss a year earlier, as revenue surged higher to GBP10.8 million, up from GBP3.2 million a year earlier and higher than the GBP7.9 million the company posted in its whole 2014 financial year.
The increased revenue was driven by the increasing order book the company has in place, including some larger project management contracts in Finchley, Harrow and in South London. At the end of February, the company was working on nine ongoing contracts with two more expected to start imminently.
The group is not paying an interim dividend but said it is confident on the outlook for the full year.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
