In the year ended 31 August 2014 an impairment charge has been
recognised on the investment properties which have been written
down to its fair value less costs to sell. This is based on current
market evidence.
Discontinued operation relates to the continued treatment of the
investment properties FG Bradford Limited & FG Bristol Limited
results as part of discontinued operations.
4. Taxation
A deferred tax asset has not been recognised as the reversal of
tax losses is uncertain.
5. Earnings per share
Earnings/(loss) per share are based on the following profits and
numbers of shares:
6 months ended 6 months ended Year ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period:
Basic and diluted earnings - continuing operations 266 (173) (99)
Basic and diluted earnings - discontinued operations (9) (2) (421)
Basic and diluted earnings/(losses) - continuing and
discontinued operations (257) (175) (520)
Number of Number of Number of
Shares shares Shares
'000 '000 '000
Weighted average number of shares:
Basic 220,515 204,018 220,515
Diluted 220,515 204,018 220,515
Notes to the Interim Information
For the six months ended 28 February 2015
6. Reconciliation of profit from operations to net cash from
operations
6 months ended 6 months ended Year ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Operating profit /(loss) for the year from continuing
operations 266 (145) (69)
Operating (loss) from discontinued operations (9) (2) (421)
Amortisation of intangible assets - - 1
Depreciation of property, plant and equipment 5 - 8
Impairment of assets classified as held for sale - - 403
Operating cash flows before movements in working capital 262 (147) (78)
(Increase)/decrease in inventories (6,198) 4 (697)
(Increase)/decrease in receivables (952) 1264 (540)
Increase/(decrease) in payables 578 (986) (483)
Cash used in by operations (6,310) 135 (1,798)
7. Investments accounted for using the equity method
6 months ended 6 months ended Year ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Investment in JV Finance Ventures Limited
Brought Forward 4,648 6,238 6,238
Received (3,380) - (1,590)
Carried Forward 1,268 6,238 4,648
In the year ended 2010, Formation Group PLC, in partnership with
JV Finance Limited, have contributed through JV Finance Ventures
Limited, a combined sum of GBP18.2 million, (Formation Group Plc's
contribution of GBP6.7 million on terms as announced on 2nd
September 2010) in order to settle with both Heritable Bank Plc's
administrator and outstanding creditors, in order to secure the
Aldgate site and the necessary warranties for completed
construction works.
Formation Group Plc's percentage shareholding in JV Finance
Ventures Limited is 36.88% and is based on Formation's percentage
share of long term loans in JV Finance Ventures Limited of GBP6.7m.
On the basis that the loans are repayable in 10 years time and the
percentage of the loan directly affects the shareholding, the loans
have been treated as an investment in an associated undertaking and
is accounted for under the equity method. Accordingly the
investment in JV Finance Ventures Limited has been adjusted to the
anticipated fair value of the sales proceeds less costs to sell.
The fair value is based on the present value of the anticipated
future cash flows due within one year.
Formation Group Plc is pleased to announce that post period the
investment funds have been fully received.
Notes to the Interim Information
For the six months ended 28 February 2015
8. Inventories
6 months ended 6 months ended Year ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Work In Progress 6,905 - 707
6,905 - 707
The inventory is held at the lower of cost and net realisable
value. There have been no write down of inventories or amounts
recognised in the income statement during the period. The inventory
relates to the development site at 161 Iverson Road.
9. Bank overdrafts and loans
6 months ended 6 months ended Year ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Bank loan - term loan facility (8,643) (4,302) (4,321)
(8,643) (4,302) (4,321)
6 months ended 6 months ended Year ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
On demand or within one year - (4,302) (4,321)
Due more than one year (8,643) - -
The weighted average interest rates paid were as follows:
6 months ended 6 months ended
28 Feb. 2015 28 Feb. 2014 31 Aug. 2014
(Unaudited) (Unaudited) (Audited)
%. % %
Bank loan 6.00 4.00 3.25
_____________ ___________ __________
Notes to the Interim Information
For the six months ended 28 February 2015
9. Bank overdrafts and loans (continued)
The loans are secured on the developments in (i) FG (Bradford)
Limited, FG (Bristol) Limited (ii) Formation Homes (London)
Limited.
(i) FG (Bradford) Limited bank loan of GBP2.053m is repayable
upon demand and interest payable is at the rate per annum which is
the aggregate of 3% and the rate at which deposits in sterling are
offered to the bank in the London Inter-Bank Market (subject to a
minimum aggregate rate of 4% per annum).
FG (Bristol) Limited bank loan of GBP2.278m is repayable upon
demand and interest payable is at the rate per annum which is the
aggregate of 3% and the rate at which deposits in sterling are
offered to the bank in the London Inter-Bank Market (subject to a
minimum aggregate rate of 4% per annum).
There may be a risk of default on both of these loans if the
capital is not repaid however in such an event the properties can
be taken back and sold by Dunbar Assets Plc under the non-recourse
funding arrangement.
It should be noted that this entire balance relates to
discontinued operations
(ii) ) Formation Homes (London) Limited bank loan of
GBP4.312m,is repayable within eighteen months of the date taken out
and is due to be repaid on the 18 June 2016. This facility is
secured by Titlestone Real Estate on the 159-161 Iverson Road
development. The interest rate payable on this loan is a fixed term
rate of 9%.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMGZKZRMGKZZ
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