LONDON (Alliance News) - Private-rented sector developer Sigma Capital Group PLC said on Tursday it saw a rise in profit for 2017 but revenue fell due to altered development schedules to create a pipeline for its listed investment and development manager PRS REIT PLC.
Pretax profit rose by 11% to GBP4.1 million from GBP3.7 million the year before, with the booking of GBP1.9 million unrealised gain on the revaluation of an investment property, as well as a GBP812,000 realised gain.
This was despite a rise in administrative costs to GBP4.3 million from GBP3.4 million, reflecting an increase in employees.
Revenue however, fell to GBP4.4 million from GBP5.4 million as measures were taken to give PRS REIT an immediate pipeline of development opportunities when it was launched.
In May 2017, PRS REIT raised GBP250.0 million in its initial public offering of 250 million shares of 100 pence each, with the UK government's Homes & Communities Agency taking a 10% stake for GBP25.0 million.
"The successful launch of the PRS REIT, which is the UK's first REIT dedicated entirely to investment in new rental homes, has created a huge opportunity for the group to capture, and cements our position as a leader in the private rented sector. 2017's results do not reflect the profound change to Sigma's growth prospects and earnings profile. However our financial performance from the new financial year onwards will reflect the new model," said Chief Executive Graham Barnet.
Shares in Sigma Capital were up 1.6% at 127.50 pence on Tuesday.
