Formation Group PLC Debt Repayment and Development Loan Extension (6193B)

TIDMFRM

RNS Number : 6193B

Formation Group PLC

20 June 2016

Formation Group Plc

('Formation' or 'the Group')

Debt Repayment and Development Loan Facility Extension

Formation Group Plc (AIM: FRM), the property development and project management company, is pleased to announce that the amount outstanding on its development facility of GBP8,981,000, which its subsidiary company Formation Homes (London) Limited holds with its current lender, has been reduced to GBP3,924,000 following recent sale completions at 159-161 Iverson Road, London NW6 2RB. There are further apartments exchanged totaling approximately GBP1,775,000 which, when completed, will further reduce these borrowings to approximately GBP2,150,000. The lender has now offered a three-month extension to its facility to 15(th) September 2016 on similar terms.

The development is fully completed, with further apartments under offer. The Board is confident that with current sales progress, remaining asset value in the scheme and access to its own cash resources (Norwich House Profit Share Agreement) this facility will be fully repaid. Profits on the development remain in line with expectations.

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Enquiries:

Formation Group plc Tel: +44 (0) 20 7920 7590

David Kennedy, Chief Executive Officer

Northland Capital Partners Ltd (Nomad) Tel: +44 (0)20 3861 6625

William Vandyk / Gerry Beaney

Peterhouse Corporate Finance Limited (Broker) Tel: +44 (0) 20 7469 0930

Duncan Vasey / Fungai Ndoro

Yellow Jersey PR Limited (Media Relations) Tel +44 (0) 7825 916 715 /

Dominic Barretto / Alistair de Kare-Silver +44 (0) 7768 537 739

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