London’s buoyant property market has helped construction management firm Formation Group report revenue growth of 199 per cent for the year ending 31 August 2015.

Group revenues  rose to £23.7m over the period, compared with £7.941m the previous year, while profits before taxation were £2.2m from continuing operations, up from a 2014 loss of £99,000.

Growth was driven by an increasing workload due to the strong London property market, as well as a profit share agreement with Sunbel Development and Pinacle Developments regarding Norwich House, which generated an income of £2.4m.

Speaking exclusively to City A.M., Formation’s non-Executive Chairman William O’Dea said  the group anticipates further growth in the year ahead, as it continues to focus on the lower end of the property market.

“I have no doubt that you’ll see a significant uplift in the profits for this year,” he said.

“We are conscious [there will be slowdown in] property of the higher values over the next 12-18 months but we’re concentrating on the lower end of the market – first time purchases, for instance.

“The government has a programme which is designed to lead the construction of 400,000 new units, and half of those will be for first time buyers in the £250,000-£300,000 range. That’s the market we’ll be concentrating on, and we are actively pursuing a number of these projects now.”

O’Dea also added that the group was considering an expansion into the Irish property market, particularly social housing in Dublin, Limerick and Cork.

Formation Group  is an Aim-listed Company which is based in East London, with interests in small and medium-scale building projects in London and its periphery.