Formation Group posts wider half-year losses

30th May 2014 15:16

Formation Group, a property development and project management company, posted a widening of first-half losses despite delivering a rise in revenue. The company, which has undergone a recent restructuring, posted half-year losses of £0.17m compared to £0.10m a year earlier, on revenue of £3.23m, which had grown from £2.36m a year earlier, driven primarily by the finishing of the Park Road London N8 and Salter Street London E14 projects and the start of four new projects.The higher losses were in part due to increased sales costs, which jumped from £2.06m to £2.99m. Non-Executive Chairman David Kennedy said the higher income resulting from the increased order book for project management contracts would "help improve the group's trading position going forward". The company is currently trading in line with its expectations and said it was "confident" about its prospects for the rest of the year. Cash at the half year point was £0.078, down from £0.24m at the end of August 2013. The share price dropped 8.33% in morning trade. NR