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Formation Group
Founded in 1994 as Proactive Sports Management to operate as an agent for professional footballers, Formation has added sports marketing, wealth management and legal and professional services operations to its portfolio to become an integrated sports marketing and management group.
Results validate change of business focus instituted last year
Profitable accountancy practice acquired
Further acquisitions in professional services area likely
Outlook remains positive, with increasing proportion of recurring income
Forecasts upgraded to reflect new acquisition; target share price now 35p reflecting immediate property outlook
Proposed acquisition of Colombia transforms prospects
- Major change of direction into property services: EGM to approve acquisition of Columbia Design & Build
- Substantial future work on large property developments
- Sports-related wealth management to continue
- DCF and earnings valuation suggests immediate share price in the mid-high 20’s is sustainable
- Formation's medium term target share price of 38p
A winning Formation
- Integrated sports marketing / management
- Successful record of both diversification and growth
- Clear Strategy and strong franchise in chosen areas
- Standing on an est. PER for 2007 of only 6.1 x
- Fair value : 10.4p / share
