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DJ Formation Group Plc Half-year Report

 
TIDMFRM 
 
24 May 2019 
 
                              FORMATION GROUP PLC 
 
 ('Formation', or the 'Company'; together with its subsidiaries, the 'Group')) 
 
      Unaudited Interim Results for the six months ended 28 February 2019 
 
Director's Statement 
 
I am pleased to report the Group's results for the six months ended 28 February 
2019. 
 
Revenue for the 6 months ended 28 February 2019 of GBP 14.9 m was 15% lower 
than the GBP 17.2m generated in the same period last year.  This resulted in a 
gross profit of GBP 0.5m for the period (2018: GBP 0.9m), a fall of 45%. 
Administrative costs, which are relatively fixed in nature, were lower than the 
prior year at GB P0.6m (2018: GBP 1.1m). As a result, the group posted a loss 
for the period of GBP0.1m compared to a loss of GBP 0.3m for the same period in 
2018. 
 
The Directors continue to pursue opportunities for new projects and new clients 
in order to grow revenues. 
 
David Kennedy 
24 May 2019 
 
Unaudited consolidated income statement 
For the six months ended 28 February 2019 
 
                                                6 Months     6 Months    Year ended 
                                     Note     ended 28 Feb ended 28 Feb 31 Aug 2018 
                                                  2019         2018      (Audited) 
                                              (Unaudited)  (Unaudited) 
 
                                                 GBP'000        GBP'000        GBP'000 
 
      Continuing operations 
 
            Turnover                   2         14,864       17,206       38,629 
 
          Cost of sales                         (14,396)     (16,349)     (37,674) 
 
                                               __________   __________   __________ 
 
          Gross profit                            468          857          955 
 
     Administrative expenses                     (605)       (1,134)      (1,371) 
 
                                               __________   __________   __________ 
 
 Operating loss from continuing                  (137)        (277)        (416) 
           operations 
 
 Gain on financial asset at fair 
  value through profit and loss        3           -            -           450 
             account 
 
                                               __________   __________   __________ 
 
    (Loss)/profit on ordinary 
  activities before exceptional                  (137)        (277)          34 
        item and taxation 
 
 
        Exceptional Item                           -            -          (318) 
 
                                               __________   __________   __________ 
 
  (Loss) on ordinary activities                  (137)        (277)        (284) 
         before taxation 
                                                   -            -            - 
            Taxation 
 
                                               __________   __________   __________ 
 
      (Loss) for the period                      (137)        (277)        (284) 
 
                                               __________   __________   __________ 
 
        Attributable to: 
 
                                               __________   __________   __________ 
 
  Equity holders of the parent                   (137)        (277)        (284) 
 
                                               __________   __________   __________ 
 
    (Loss)/earnings per share 
 
   From continuing operations 
 
        Basic and diluted              4        (0.31)p      (0.63)p       0.08p 
 
From continuing and discontinued 
           operations 
 
        Basic and diluted              4        (0.31)p      (0.63)p      (0.64)p 
 
Unaudited consolidated statement of financial position 
As at 28 February 2019 
 
                                              Note     6 Months     6 Months   Year ended 
                                                   ended 28 Feb ended 28 Feb  31 Aug 2018 
                                                           2019         2018    (Audited) 
                                                    (Unaudited)  (Unaudited) 
 
                                                          GBP'000        GBP'000        GBP'000 
 
Fixed Assets 
 
Tangible Assets                                              10           16           14 
 
Investment Property                                         275          275          275 
Investments                                               5,000            -        5,000 
 
                                                     __________   __________   __________ 
 
                                                          5,285          291        5,289 
 
                                                     __________   __________   __________ 
 
Current assets 
 
 
Inventories                              5                  156          170          156 
Debtors                                                   6,274       11,417        9,949 
 
Cash at bank and in hand                                  3,051        3,204          746 
 
                                                     __________   __________   __________ 
 
                                                          9,481       14,791       10,851 
 
                                                     __________   __________   __________ 
 
Current liabilities 
 
Creditors: Amounts falling due within 
one year 
 
Creditors                                               (4,958)      (5,130)      (5,878) 
 
                                                     __________   __________   __________ 
 
Total current liabilities                               (4,958)      (5,130)      (5,878) 
 
Net current assets                                        4,523        9,661        4,973 
 
                                                     __________   __________   __________ 
 
Total assets less current liabilities                     9,808        9,952       10,261 
 
Provision for liabilities                6                    -            -        (318) 
 
                                                     __________   __________   __________ 
 
Net assets                                                9,808        9,952        9,945 
 
                                                     __________   __________   __________ 
 
Shareholders' funds 
 
Share capital                                             2,205        2,205        2,205 
 
Share premium account                                     2,106        2,106        2,106 
 
Capital redemption reserve                                   61           61           61 
 
Share option reserve                                         22           22           22 
 
Retained earnings                                         4,964        5,558        5,101 
Fair value reserve                                          450            -          450 
 
                                                     __________   __________   __________ 
 
Total shareholders' funds                                 9,808        9,952        9,945 
 
                                                     __________   __________   __________ 
 
Notes to the unaudited financial information 
 
 1. Basis of preparation 
 
The financial information set out in this unaudited interim report does not 
constitute statutory accounts as defined in Section 434 of the Companies Act 
2006. The Group's statutory financial statements for the year ended 31 August 
2018, prepared under FRS 102, have been filed with the Registrar of Companies. 
The auditor's report on those financial statements was unqualified and did not 
contain a statement under Section 498 (2) or (3) of the Companies Act 2006. 
 
The unaudited interim financial information has been prepared in accordance 
with the recognition and measurement principles of FRS 102 and on the same 
basis and using the same accounting policies as used in the financial 
statements for the year ended 31 August 2018. The interim financial statements 
have not been audited or reviewed in accordance with the International Standard 
on Review Engagement 2410 issued by the Auditing Practices Board. 
 
2. Turnover 
 
For management purposes, the Group is organised into different segments being 
professional construction services and development operations. All turnover is 
generated in the United Kingdom. 
 
Turnover analysed by category was as follows: 
 
                                                      6 Months    6 Months  Year ended 
                                                      ended 28    ended 28 31 Aug 2018 
                                                      Feb 2019    Feb 2018   (Audited) 
                                                   (Unaudited) (Unaudited) 
 
                                                         GBP'000       GBP'000       GBP'000 
 
Professional construction services                      14,864      15,846      37,268 
 
Development operations                                       -       1,360       1,361 
 
                                                    __________  __________  __________ 
 
                                                        14,864      17,206      38,629 
 
                                                    __________  __________  __________ 
 
 
3. Exceptional Item 
 
Included in the 2018 audited accounts is a provision of GBP0.318m in relation to 
a judgement passed by the court to Formation Construction Limited (FCL).  This 
liability is the sole obligation of FCL, with no recourse to the remainder of 
the group. 
 
4. Earnings per share 
 
 
The calculation of basic and diluted loss per share is based on the following 
losses and numbers of shares: 
 
                                                        6 Months    6 Months  Year ended 
                                                        ended 28    ended 28 31 Aug 2018 
                                                        Feb 2019    Feb 2018   (Audited) 
                                                     (Unaudited) (Unaudited) 
 

(MORE TO FOLLOW) Dow Jones Newswires

May 24, 2019 06:23 ET (10:23 GMT)

DJ Formation Group Plc Half-year Report -2-

Basic earnings before exceptional items                    (137)       (277)          34 
 
Basic loss after exceptional items                             -           -       (318) 
 
                                                      __________  __________  __________ 
 
Basic and diluted profit - continuing 
and discontinued operations                                (137)       (277)       (284) 
 
                                                      __________  __________  __________ 
 
 
                                                       Number of   Number of   Number of 
                                                       5p shares   5p shares   5p shares 
 
                                                            '000        '000        '000 
 
Weighted average number of shares: 
 
Basic                                                     44,103      44,103      44,103 
 
Diluted                                                   44,103      44,103      44,887 
 
                                                      __________  __________  __________ 
 
 
Profit per share is calculated by dividing the profit for the period 
attributable to equity shareholders by the weighted average number of shares in 
issue during the period. 
 
5. Inventories 
 
                                                      6 Months    6 Months  Year ended 
                                                      ended 28    ended 28 31 Aug 2017 
                                                      Feb 2019    Feb 2018   (Audited) 
                                                   (Unaudited) (Unaudited) 
 
                                                         GBP'000       GBP'000       GBP'000 
 
Work in progress & stock of properties                     156         170         156 
 
                                                    __________  __________  __________ 
 
 
The inventory is held at the lower of cost and estimated selling price. There 
has been no impairment of inventories or amounts recognised in the income 
statement during the period. 
 
6. Contingent liability note 
 
On 4 November 2015, the Health and Safety Executive began an investigation into 
Formation Construction Limited (FCL) following an accident on one FCL's 
construction sites on that date.  Prosecution by the Health and Safety 
Executive against FCL has now concluded and the financial impact of the court 
case was provided for in the 2018 audited accounts, as referenced in note 3 
above. 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
                                   --ENDS-- 
 
Enquiries: 
 
Formation Group plc                                  Tel: +44 (0) 20 7920 7590 
David Kennedy, Chief Executive Officer 
 
Peterhouse Capital Limited (Corporate Adviser)       Tel: +44 (0) 20 7469 0934 
Fungai Ndoro and Mark Anwyl 
 
Market Abuse Regulation (MAR) Disclosure 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulation 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

May 24, 2019 06:23 ET (10:23 GMT)