Formation Group has profitable numbers for period report

Formation Group plc, which provides an array of specialist services to brands and professional athletes, announced its interim results for the six-month period ending 28 February.
 
Turnover for the company, which provides wealth management, sports marketing, legal and professional services and representation, rose 23 percent to GBP 8.5 million, while operations profit increased 25 percent to GBP 510,000. Pre-tax profit also rose, jumping 14 percent to GBP 468,000 and earnings per share went up 17 percent to GBP 0.24 pence.
 
“I am delighted with the progress made by the Group. As our results demonstrate, our strategy of diversifying the business base into related, complementary areas is delivering tangible results,” said John Lawrence, Chairman of Formation Group.
 
“We have sound foundations in place to grow the business, both organically and by acquisition. All divisions are trading in line with or ahead of our expectations and in the second half of the financial year, the World Cup will also ensure that all our subsidiaries have an opportunity to add value and demonstrate their clear point of difference, as FIFA stages the World's largest football event.
 
“We remain optimistic about the prospects for the Group for the remainder of the year and beyond.”
 
As of the report, the Formation Group had committed future gross profit of GBP 4.6 million, of which GBP 2 million will be recognised in the current financial year ending 31 August 2006.
 
Formation Group comprises four operating divisions, which trade as individual profit centres. The divisions are sports marketing, trading as Fox Advertising, Active Sports Marketing Limited, RC&A Sports Management Limited and Sponsormatic A/S; wealth management, trading as Kingsbridge Asset Management Limited; legal and professional services, trading as Capital Sports Solutions Limited; and representation, trading as Proactive Sports Management Limited, Proactive Scandinavia A/S and Proactive USA.
 
Turnover in sports marketing for the period increased 39 percent to GBP 4.79 million, and the contribution for the division was GBP 687,000, an increase of 12 percent over last year.
 
Wealth management had a turnover of GBP 2 million for the period, and the contribution for the division was GBP 489,000, an increase of 82 percent from the previous year.
 
Turnover for legal and professional services during the period was GBP 74,000, and the division’s contribution GBP 8,000.
 
The representation division currently acts for 193 players throughout the world, with 121 representing their country at international level. Of the players, 92 are based in the UK, 73 in Europe and 28 throughout the rest of the world.
 
The performance of the division is weighted towards the second half of the year. Results for the first half were in line with the formation group’s expectations, with turnover of GBP 1.68 million and a loss of GBP 114,000. A total of 38 transfers or contract renewals were done during the period.

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