Thursday, February 07, 2013
SIGMA CAPITAL GROUP PLC
("Sigma" or "the Group")
Sigma, the property and urban regeneration specialist, is pleased to provide the following update on trading for its financial year ending 31 December 2012. In addition, in two separate announcements issued today, Sigma is also pleased to announce Board changes, with the creation of the new role of Chief Operating Officer, which Graeme Hogg previously Partnership Director is assuming, and the appointment of Duncan Sutherland to the Board as Regeneration Director. Sigma also announces further progress with its North Solihull local authority partnership.
Trading in the second half of the financial year was in line with expectations, with results showing a small trading profit. This is against a loss of £0.3m in the first half. As anticipated, net cash at the year end increased to £1.0m from £0.7m at the half year end (31 December 2011: £1.3m). Trading results for the full year are therefore in line with budgets, with revenue from services expected to be at least £2.3m (2011: £2.47m including one-off compensation payments to Sigma of £0.8m) and the trading loss for the year is anticipated to be £0.3m (2011: breakeven). The underlying increase in revenue from services reflects the strong progress Sigma is making in developing its core Property Division. Here revenue in the second half was approximately 56% up over the first half and approximately 243% up over last year's result.
The levels of activity in the Property Division continue to increase and the visibility of revenue streams is becoming stronger. We are continuing to develop opportunities in residential property development and urban regeneration, property asset management and property funding. With our three local authority partnerships and our involvement with the Winchburgh Development, the scope for building revenues remains substantial.
The like-for-like revenue contribution from our historic venture capital fund management activity is lower than last year and we intend to make a further provision of approximately £0.5m for the year to 31 December 2012 against the carrying value of Sigma's holdings in the equity funds it manages, reducing the carrying value to below Sigma's share of the net asset value of the funds. Taking into account this further £0.5m provision, the loss before tax for the year is expected to be no more than £1.3m (2011: loss of £1.4m).
Net assets per share attributable to equity shareholders at 31 December 2012 are expected to be approximately 5.5p per share (31 December 2011: 8.2p).
Full year results will be announced in the second half of April when the Board looks forward to providing a further update on trading.
Sigma Capital Group plc
Graham Barnet, Chief Executive
Marilyn Cole, Finance Director
T: 0131 220 9444
Katie Tzouliadis/ Alex Shilov
T: 020 3178 6378
N+ 1 Singer
James Maxwell/Nick Donovan
T: 0207 496 3000
Company website: www.sigmacapital.co.uk