- The Group has continued its drive to cut overheads in order to ensure a lean cost base going forward.
- Successful completion by FG (Bristol) Ltd of the development at 175-180 Church Road, St George, Bristol within budget and projected timescale. This development is now managed on a non recourse funding basis. Post year end the York House Bradford development has been successfully completed and will be managed on a similar basis.
- The Group is now fully focused on its property activities.
Post year end there have been positive outcomes in relation to the Company's, previously reported contingent liabilities and litigation:
- The Whitechapel Property Fund Limited has been repaid its initial investment plus agreed interest virtually in full. This repayment releases Formation of its guarantee to the fund and consequently has extinguished the contingent liability of £3.95m. The Group has an entitlement to a profit share from the remaining unsold units within this development which is anticipated to be circa £1.3m.
- As announced on 18th January 2012, following completion of the disposal of the Aldgate development by Julius Properties Limited ("JPL"), the Group has been released from the contingent liability relating to Formation's guarantee to assist JPL in repaying Aldgate East Property Company Limited a maximum of £11.55 million in respect of capital and interest on loan notes.
- Additionally, the Group settled a longstanding dispute with Gestifute which led to a net cash inflow.
Charles Green, Chairman of Formation said; "The difficulties and challenges facing the company are no less than in the previous year. The prevailing weakness in the financial markets continue to hinder the Group and its plans in moving forward. There has however been improvement in the Group's underlying financial performance before exceptional items, as these results show. The continued efforts of the Directors and management are beginning to bear fruit. Post year end there have been positive outcomes in relation to the Group's previously reported contingent liabilities and litigation which places the company in a more stable position going forward."