Formation Group

Sports marketing and management business Formation, which represents crocked football genius Wayne Rooney (as well as fiancée Colleen McLaughlin as a first entertainment world client), scored decent half-time numbers to February thanks to star turns from its wealth management and sports marketing arms.

Chief executive Neil Rodford, former managing director of Fulham Football Club, claimed the figures demonstrated increased diversification and reduced reliance on lumpy football related revenues in a World Cup year.

Pre-tax profits at the group, floated as Proactive Sports Management in 2001 and boasting a chequered City history, edged 14% north to £468,000 on turnover lifted 23% to £8.5m, sending earnings up 17% to 0.28p. Rodford also flagged up increased earnings visibility, with ‘committed’ future gross profits standing at £4.6m (£4m), with £2m set for delivery this year.

All divisions - sports marketing, wealth management, legal & professional services and the sexier representation (trading as Proactive) - traded in line with or ahead of expectations. Sports marketing, where Formation has bought the first bespoke portable LED perimeter advertising system for leasing out to stadiums in the UK, enjoyed a 40% sales jump to £4.79m. Incoming A-day pension legislation has given a recent shot in the arm to wealth management, whilst the embryonic legal & professional services operation turned over an initial £74,000.

The one anticipated loss maker was the headline grabbing, but highly second half loaded, representation business, where Formation acts for 193 footballers.

Formation is building a track record of sales and profits growth, but this is a notoriously volatile sector, and we reckon there are more compelling investments elsewhere.