Formation sell-off continues

SLIMMED-down Formation Group has continued its sell-off of non-core assets with the sale of the majority of its wealth management activities.

The AIM company wants to focus on property development, and having sold its sports and showbiz representation divisions for £20m to a private equity firm, is now disposing of the other businesses.

The Hale Barns company said it is selling Formation Wealth Solutions  and “certain of the assets” of its other wealth management business, Wilmslow-based Formation Asset Management,t to Wealth FX – which is owned by FAM director Ian Battersby.

The £225,000 consideration will be paid over five years

Another Formation Asset Management director, Iain Muffitt, is buying some of the business’ contracted client income streams in a deal which should be worth £125,000 over the next three years.

Formation said it remains in discussions with another third party in respect of other contracted income assets of FAM.

Chairman John Lawrence said; “These disposals enable the group to focus on its core property businesses whilst continuing to address the well-documented potential property contingent liabilities it has on its balance sheet.

As a result of the deal Mr Battersby has resigned from Formation’s plc board.