FRM.L Regulatory News (FRM)

3 Sep 2007 10:05

Formation Group PLC03 September 2007 Formation Group plc ("Formation" or "the Group") Trading Update Revenue and profitability ahead of market expectations Formation Group plc is structured with subsidiary companies operating within twodistinct divisions; 'Professional Services' and 'Property Management andInvestment'. The Group's Professional Services division provide wealthmanagement, accountancy and insurance services as well as sports representationto sporting and entertainment individuals in particular and high net worthindividuals generally. In addition, it provides corporate finance advice tosporting clubs and institutions. The Group's Property Management and Investment division provide land evaluation,design and architectural services and build project management to propertydevelopers. Typically these will involve developments with mixed residential andcommercial use. In addition, it generates bespoke property investmentopportunities which are offered to clients within the Group's ProfessionalServices division and to the wider financial intermediary community. The Group announces a Trading Update ahead of its preliminary results for thetwelve months ended 31 August 2007, which will be announced in November 2007. The Board is pleased to report that, as a result of sustained strong tradingduring the period, forthcoming results in terms of profit will be ahead ofmarket expectations. This performance has been driven by stronger than expectedorganic growth in the majority of the Group subsidiary companies. Key highlights during the period include: • Acquisition of 90% of the total issued share capital of O J Kilkenny &Co Ltd, an accountancy practice specialising in the entertainment and sportingindustries (it is the Group's intention to acquire the remaining 10% in duecourse). This acquisition provides complementary services to the Group'sProfessional Services division. • Acquisition of Columbia Design and Build Ltd and the resultantdevelopment of a Property Management and Investment division for the Group • An equally balanced business at operating contribution level acrossboth Professional Services and Property Management and Investment divisions • Acted as Investment Advisor to both The Whitechapel Property FundLimited and The Aldgate East Property Company Limited, raising approximately£25m to part fund two commercial and residential developments in London • Sustained growth and market presence for Capital Sports Solutions, theGroup's sports corporate finance specialist • 10% equity stake acquired in Columbia Formation Group (Ireland)Limited, the holding company for two major property developments in Dublin,Ireland, one at Clancy Quay, the other at Davitt Road. These developments haverecently been independently valued to have a land value of euros 170m Neil Rodford, Chief Executive, Formation Group plc commented, "I am delighted with our progress. Establishing a Property Management andInvestment division and strengthening our strong performing ProfessionalServices division with the recent acquisition of the accountancy practicefurther underpin the breadth of our client proposition. I look forward toproviding shareholders with more detail in due course." For further information: Mike Wallwork, Communications Director, Formation Group plc - 0161 928 1210 David Youngman, WH Ireland - 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange