10 Jan 2018 07:00
10 January 2018
AIM: SGM
Sigma Capital Group plc
("Sigma" or "the Company" or "the Group")
The Private Rented Sector ("PRS") and urban regeneration specialist
Trading Update
Sigma, the PRS, residential development and urban regeneration specialist, is pleased to provide a trading update for the financial year ended 31 December 2017.
Following a landmark first half, the Company's trading performance in the second half of the year has been strong across all its activities and the Board now expects results for the full year to be slightly ahead of management expectations, with profit before tax of c. £4.0m. In addition, the Board is upgrading its profit expectations for the new financial year.
The improved outlook for 2018 reflects excellent progress with The PRS REIT Plc (where Sigma's subsidiary is Investment Adviser), the Company's Self-funded PRS activities, as well as an increased pipeline of development opportunities and continuing buoyant demand for new family rental homes, Sigma's main area of focus. Additional new development opportunities, worth in excess of £450m, have been identified over and above those previously reported, largely reflecting Sigma's broadening relationships.
The Company is expanding considerably its construction resource and land access with Countryside Properties ("Countryside"), and plans are underway to significantly increase the number of completed units in 2018 over the prior year with this key partner. Sigma has also entered into a new Framework Agreement with Keepmoat Homes for increased housing delivery in South Yorkshire and East Midlands. This is in addition to the existing and increasing development activity with the Places & Communities Division of ENGIE (formerly part of the Keepmoat Group) in Sheffield and South Yorkshire.
Sigma's relationship with the Homes and Communities Agency ("HCA") remains highly productive, with both sides committed to the common goal of accelerating new housing delivery in England. In addition to the financial support in place, the relationship is also generating development opportunities for Sigma and its partners.
The Board expects to announce full year results in April when a further update on current trading will also be provided.
This announcement is released by Sigma Capital Group plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR"), encompassing information relating to the trading update described herein, and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Enquiries:
Sigma Capital Group plc | Graham Barnet, Chief Executive | T: 020 3178 6378 (today) |
Malcolm Briselden, Finance Director
| T: 0131 220 9444 | |
KTZ Communications | Katie Tzouliadis, Irene Bermont-Penn, Emma Pearson | T: 020 3178 6378 |
N+1 Singer(NOMAD and Broker) | James Maxwell, Liz Yong, Michael Taylor | T: 020 7496 3000 |
About Sigma Capital Group plc
www.sigmacapital.co.uk
Sigma is a private rented sector ("PRS"), residential development and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is the delivery of large-scale housing schemes, for private rental. The Company's subsidiary, Sigma PRS Management Limited, has been appointed as Investment Adviser to The PRS REIT plc, the first quoted real estate investment trust established to invest in the Private Rented Sector. The Group activities in this market build on its well-established track record of assisting with property-related regeneration projects in the public sector.
About The PRS REIT plc(www.theprsreit.com)
The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector. The Company raised £250 million gross equity capital in an Initial Public Offering via a Placing Offer for Subscription and Intermediaries Offer. The UK Government's Homes and Communities Agency supported the launch of the PRS REIT with a direct investment of c. £25 million. The proceeds of the fundraising will be invested in completed PRS sites and PRS development sites to achieve the Company's objective of providing shareholders with an attractive level of income together with the potential for capital and income growth.