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DJ Formation Group Plc Replacement : Final Results

 
TIDMFRM 
 
This is a correction of the announcement released by the Company at 7.00am this 
morning, 31 January 2018. 
 
The title of that announcement stated that the Final Results for the Company 
were for the year ended 30 September 2017. The Final Results reported in the 
announcement are for the year ended 31 August 2017. The full amended text of 
the announcement is shown below. 
 
                              Formation Group Plc 
                        ("Formation" or the "Company") 
 
                  Final Results for Year Ended 31 August 2017 
 
Chairman's Statement 
 
I am pleased to present the annual result for the Company for the twelve-month 
period to 31 August 2017. 
 
The year ended 31 August 2017 saw Formation work on existing construction 
projects, and initiate new larger projects during the latter part of the year. 
The more cautious investment activity is predominantly due to the uncertainty 
of the UK economy, both before and after the 'Brexit' referendum. House prices 
in London, the Group's key market, have been volatile though the reporting 
period. 
 
The Group spent much of the year completing existing projects, and revenues 
have increased 26% this year from GBP29.410m in 2016 to GBP37.011m in 2017. Revenue 
has mainly been generated from projects initiated in 2016. As a result, and 
despite the increase in turnover, the Company has produced an operating loss 
this year of GBP0.107m (2016 profit GBP0.733m). 
 
The finance income item of GBP0.33m relates to an adjustment to income recognised 
from the profit share in relation to a development property at Norwich House, 
9-19 Streatham High Road.  The total amounts due by Sunbel Development Limited 
in relation to the profit share agreement, were repaid in February 2017. The 
loss on ordinary activities, before taxation was GBP0.152m (2016 profit of GBP 
2.157m). The reduction in this figure from last year is reflective of the 
conclusion of the Norwich House profit share agreement. 
 
Every effort is being made to source further development and investment 
opportunities, and the Group is continuing to seek out new opportunities. 
 
The Group has added and will continue to add to the experienced base of 
construction personnel. 
 
The Board and Staff 
 
I would like to thank all board members and staff for the enormous efforts and 
dedicated contributions they have made during the year. I would also like to 
thank our shareholders for their continued trust and confidence in the Board 
and in my leadership as Chairman. 
 
William O'Dea 
Non-Executive Chairman 
 
Consolidated income statement 
For the year ended 31 August 2017 
 
                                                                    2017           2016 
 
                                                                 GBP'000        GBP'000 
 
Continuing operations 
 
Turnover                                                          37,011         29,410 
 
Cost of sales                                                   (34,835)       (26,488) 
 
                                                              __________     __________ 
 
Gross profit                                                       2,176          2,922 
 
Administrative expenses                                          (2,283)        (2,189) 
 
                                                              __________     __________ 
 
Operating (loss) / profit from continuing operations               (107)            733 
 
Finance income                                                      (33)          1,424 
 
Finance costs                                                       (12)              - 
 
                                                              __________     __________ 
 
(Loss) / Profit on ordinary activities before taxation             (152)          2,157 
 
Taxation                                                               -          (394) 
 
                                                              __________     __________ 
 
(Loss) /Profit for the year from continuing operations             (152)          1,763 
 
Discontinued operations 
 
Profit for the year from discontinued operations                       -          1,022 
 
                                                              __________     __________ 
 
(Loss) / Profit for the year                                       (152)          2,785 
 
                                                              __________     __________ 
 
Attributable to: 
 
                                                              __________     __________ 
 
Equity holders of the parent                                       (152)          2,785 
 
                                                              __________     __________ 
 
Earnings  per share 
 
From continuing operations 
 
Basic and diluted                                                (0.34)p          0.79p 
 
From discontinued operations 
 
Basic and diluted                                                      -          0.46p 
 
From continuing and discontinued operations 
 
Basic and diluted                                                (0.34)p          1.25p 
 
 
 
 
                                                                     2017           2016 
 
                                                                  GBP'000        GBP'000 
 
(Loss) / Profit for the year                                        (152)          2,785 
 
                                                              ___________    ___________ 
 
Total comprehensive Income for the financial year                   (152)          2,785 
 
                                                              ___________    ___________ 
 
Attributable to: 
 
Equity holders of the parent 
 
Continued operations                                                (152)          1,763 
 
Discontinued operations                                                 -          1,022 
 
                                                              ___________    ___________ 
 
                                                                    (152)          2,785 
 
                                                              ___________    ___________ 
 
Consolidated statement of financial position 
As at 31 August 2017 
 
                                                                    2017          2016 
 
                                                                   GBP'000         GBP'000 
 
Fixed Assets 
 
Tangible Assets                                                       21            22 
 
Investment Property                                                  275           275 
 
                                                              __________    __________ 
 
                                                                     296           297 
 
                                                              __________    __________ 
 
Current assets 
 
Inventories                                                        1,406         7,245 
Debtors                                                            7,525         9,888 
 
Cash at bank and in hand                                           4,229           330 
 
                                                              __________    __________ 
 
                                                                  13,160        17,463 
 
                                                              __________    __________ 
 
Current liabilities 
 
Creditors: Amounts falling due within one year 
 
Creditors                                                        (3,227)       (4,065) 
 
Bank loans                                                             -       (3,314) 
 
                                                              __________    __________ 
 
Total current liabilities 
 
Net current assets                                                 9,933        10,084 
 
                                                              __________    __________ 
 
Total assets less current liabilities                             10,229        10,381 
 
                                                              __________    __________ 
 
Net assets                                                        10,229        10,381 
 
                                                              __________    __________ 
 
 
 
                                                                     2017           2016 
 
                                                                  GBP'000        GBP'000 
 
Shareholders' funds 
 
Share capital                                                       2,205          2,205 
 
Share premium account                                               2,106          2,106 
 
Capital redemption reserve                                             61             61 
 
Share option reserve                                                   22             22 
 
Retained earnings                                                   5,835          5,987 
 
                                                               __________     __________ 
 
Total shareholders' funds                                          10,229         10,381 
 
                                                               __________     __________ 
 
Changes to Accounting Standards 
 
Following the Group's move from AIM to NEX Exchange, the Group and the Company 
have moved from IFRS to the UK's FRS102 because FRS102 is deemed more suitable 
for the Group and is used by its subsidiaries. No adjustments have been 
necessary to the carrying values included within these financial statements or 
their comparatives because of this change. There are no significant differences 
between IFRS and UK FRS102. 
 
The financial information contained in this statement has been extracted from 
the full audited accounts of the Company. 
 
The Directors do not propose a dividend for the period reported. 
 
The Directors of the Company accept responsibility for this announcement. 
 
=-ENDS- 
 
 
Enquiries: 
 

(MORE TO FOLLOW) Dow Jones Newswires

January 31, 2018 05:09 ET (10:09 GMT)

DJ Formation Group Plc Replacement : Final Results -2-

Formation Group Plc 
David Kennedy; Chief Executive Officer 
020 7920 7590 
 
NEX Exchange Corporate Adviser 
Peterhouse Corporate Finance Limited 
Fungai Ndoro and Mark Anwyl 
020 7469 0930 
 
 
 
 
 
END 
 

(END) Dow Jones Newswires

January 31, 2018 05:09 ET (10:09 GMT)