Formation hails the wealth of talent on its books
TALENT and wealth management group Formation, which yesterday confirmed it was in talks to take the business private, hailed a period of both “challenges and success” as it revealed a hike in profits.
The Hale-based business, which is in discussion with Gresham Private Equity in a £25m management buyout deal, said pre-tax profits rose to £1.87m in the six months to end of February compared to £1.76m last time. Turnover increased from £12.8m to £18.8m.
Formation said the performance from its five subsidiaries, which include talent-management businesses James Grant and Proactive Sports Management, financial adviser OJ Kilkenny and Formation Sports Capital, has been strong.
The buyout deal is believed to include five of the group’s businesses however Gresham is understood not to be interested in Formation’s construction and asset management business which would remain on the stock market.
Formation has been hit by a disastrous property venture at Aldgate East tube station in London where it could take a hit of up to £11.6m after the backer Heritable Bank was placed in administration.
But its management services division, which include James Grant Media Formation Sports Management and Proactive Sports Management, saw operating profit rise from £500,000 to £1.9m.
The group said it continues to represent some of the UK’s very best radio and TV clients including Ant and Dec and Simon Cowell who front shows like Britain’s Got Talent and “I’m a Celebrity Get Me Out Of Here!”
In 2008, it has clients who were involved in six of the 13 most views TV programme in the UK.
Elsewhere, its professional services division continued to expand its client base and revenue increased from £11.3m to £14.9m.
Chief executive Neil Rodford said: “We have continued to evolve and grow the business and whilst this has undoubtedly become a harder task from an acquisition perspective, we remain clear on the needs of our businesses and confident in their individual ability to prosper.
“Our desire is to extract the underlying shareholder value that we feel lies within the group. This will be at the heart of the businesses focus over the coming months.”
