SGM.L Regulatory News (SGM)

31 Jul 2006 13:50

Sigma Capital Group PLC31 July 2006 For Immediate Release 31 July 2006 SIGMA CAPITAL GROUP PLC ("Sigma" or "the Company") TRADING UPDATE Sigma (AIM:SGM), the UK specialist asset management and advisory group whichfocuses on specialist fund management, commercialisation of University IP andproperty, confirms that it will announce its interim results for the six monthsended 30 June 2006 in the week commencing 25 September 2006. Prior to enteringits close period, the Group today issues a pre-close trading update. Trading in the first half of the year has been strong with turnover for thefirst half of 2006 equal to the turnover of £3.3m for the whole of 2005,resulting in a significant move into profit. The Company therefore expects togenerate profits ahead of expectation and represents a significant shift in itsfortunes away from the losses of previous years. The property arm concluded two transactions in the period: •the establishment of its fourth limited partnership which generated gross fees of £2.2 million (as announced in its preliminary statement); and •most recently the sale of the property held by its third limited partnership, Eagle Star's head office in Cheltenham. This deal delivered a 30% return to investors over a 19 month period, and as a result generated gross profit of over £0.5 million on disposal, which will be recognised in the first half results. In addition contracts have today been exchanged for the acquisition of threeregional Ramada hotels managed by experienced hotel operator Jarvis Hotels thatwill form the basis for the fifth partnership. This is anticipated to becapitalised at approximately £73m. This is the largest partnership to date andif successfully completed will make a material contribution to the results forthe second half of the year. The fund management and advisory arm has benefited from a maiden contributionfrom the Sigma Sustainable Energies Fund launched in January with Scottish andSouthern Energy plc as a trade investor, continuing the growth of its fundsunder management. 2006 has also seen significant progress in the development of Sigma'srelationships with Scottish Universities. This was evidenced by the announcementin April in relation to a long term partnership with Robert Gordon Universityand the investment earlier this month in B1 Medical Ltd, which has beenestablished to commercialise intellectual property from the University ofAberdeen, the Robert Gordon University and NHS Grampian in the field of medicaldevices for orthopaedics. The Directors are very confident about the prospects for the Group for thesecond half of the year and look forward to reporting further progress acrosseach of the Group's businesses. For more information please contact: Sigma Capital Group PLCGraham Barnet, Joint Managing Director 0131 220 9444Neil Crabb, Joint Managing Director 020 7653 3200 Buchanan Communications 0207 466 5000Diane Stewart/Amy Rajendran This information is provided by RNS The company news service from the London Stock Exchange