Property developer Formation Group reports 24pc rise in full year revenues

(ShareCast News) - Property developer Formation Group on Friday reported a slight decline in full year pre-tax profit as administration expenses and cost of sales rose.The AIM-listed company posted pre-tax profit of £2.1m in the year ended 31 August, down a touch from £2.2m the previous year. However, revenues jumped 24% to £29.4m from £23.7m, driven by an increased number of contracts and a rise in the sales of a number of apartments on the completed Iverson Road development in London's north west. "It is expected that revenue will grow over the coming financial year with various large work contracts in place and additional sales on the Iverson Road development," said chairman William O'Dea.Formation's results were supported by a strong London market where prices of homes continue to rise.Chief executive David Kennedy said the group continues to strengthen its presence in the London property market through a profit share participation at Norwich House in Streatham, and the completion of the development on Iverson Road."The outlook for the group is optimistic as the UK economy comes to terms with the impact of 'Brexit vote' in June 2016, and the directors continue to monitor market activity," he added.