Company Announcements

Audited final results for the year ended 31 December 2013

Wednesday, March 19, 2014


  AIM: SGM

19 March 2014

Sigma Capital Group plc

(“Sigma” or “the Group” or “the Company”)

Audited final results for the year ended 31 December 2013

Sigma is a finance, property and urban regeneration specialist

 

To view the full announcement click here

 

Key Points

 

 

 

2013

 

 

2012

 

% change

Revenue from services

 

£5.81m

 

£2.33m

 

150% improvement

      revenue from property activities

 

£5.34m

 

£1.48m

 

261% improvement

Loss  from operations

 

£(0.36m)

 

£(1.08m)

 

67% improvement

Loss before tax

 

£(0.86m)

 

£(1.17m)

 

26% improvement

Loss per share

 

(1.87)p

 

(2.57)p

 

27% improvement

Net assets per share

 

5.5p

 

5.7p

 

(4%) reduction

Cash balances

 

£1.07m

 

£1.02m

 

5% improvement

 

·           2013 represented a turning point in the Group’s development

·           Sigma’s objective to develop a funding model for the creation of a large-scale portfolio of new privately rented homes in the UK moved forward significantly with:

 -       formation in November 2013 of a Joint Venture with Gatehouse Bank plc for a proposed roll-out of up to c. 6,600 new rental homes across the UK (with estimated development value of £700m)

-       commencement of the first phase of the roll-out is subject to bank financing

-       venture is supported by Sigma’s local authority partnerships

·           Proposed share placing to raise £8.0m gross (see separate statement)

      to support Sigma’s growth ambitions

·           Property activities made encouraging progress

  • -          existing local authority partnerships continued to generate good income
  • -          North Arran Way development, in North Solihull, close to completion
  • -          discussions with additional local authorities
  • -          Winchburgh development, near Edinburgh, progressing well

·           Exit from historic venture capital activities substantially completed

·           Growth prospects remain very positive

 

David Sigsworth, Chairman, said,

 

I am delighted to report on the substantial progress Sigma has made during the course of 2013.  Although the full financial benefits are not yet evident in Sigma’s financial performance, we believe that the year represents a turning point in the Group’s development and in its potential to accelerate growth and earnings.

 

The point we have reached today with our PRS model has been in development over the last three years and our Joint Venture with Gatehouse marks a significant milestone.  Our strong relationships with our local authority partners and track record in urban regeneration have been key to the development of our model and the Gatehouse agreement.  Once bank financing is in place, the roll-out of the first phase of the joint venture, the construction of c. 2,000 new rental homes, can commence. 

 

We are now focused on broadening our local authority relationships to widen the geographic exposure of our PRS model. We also believe that our PRS model is extendable into the social housing market.

 

With both local and central government support for our PRS initiative and with the backing of Gatehouse, we believe that 2014 will be another significant year for the Group.  The Board views the year ahead with confidence.”

 

 

Enquiries:

 

Sigma Capital Group plc

www.sigmacapital.co.uk

Graham Barnet, Chief Executive

Marilyn Cole, Finance Director

T: 0131 220 9444

 

 

 

KTZ Communications

Katie Tzouliadis / Deborah Walters

 

T: 020 3178 6378

 

 

 

N+1 Singer

James Maxwell / Nick Donovan

T: 020 7496 3000

 

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