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Trading Update

4 Sep 2009 07:00

RNS Number : 5207Y
Sigma Capital Group PLC
04 September 2009
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SGM

4 SeptemberΒ 2009

Sigma Capital Group plc

("Sigma"Β orΒ "the Group")

Trading Update

Sigma, the specialist asset management and advisory group,Β isΒ providing the following update on trading for the six months to 30 June 2009.

Half year resultsΒ are expected to be significantly ahead ofΒ currentΒ market expectationsΒ for the year,Β with profit before taxΒ in excess of Β£1.4m (2008: Β£0.5m).Β ThisΒ principallyΒ reflectsΒ theΒ realised gain on the sale of Sigma's investment in its university IPΒ commercialisationΒ subsidiary, Frontier IP Limited. TheΒ subsidiaryΒ was reversed intoΒ aΒ PLUS-quotedΒ investmentΒ companyΒ and re-listedΒ as Frontier IP Group plcΒ onΒ theΒ PLUSΒ Market on 13 May 2009.Β 

Net assets per shareΒ attributable to equity shareholdersΒ at 30Β JuneΒ 2009Β are expected to beΒ approximatelyΒ 20p per shareΒ (31 DecemberΒ 2008: 15.9p).Β NetΒ cash at 30 June 2009Β stoodΒ atΒ approximatelyΒ Β£3.8mΒ (31Β DecemberΒ 2008: Β£3.8m).Β This figureΒ excludesΒ cashΒ of Β£0.7mΒ within Frontier IP Group plc.

A summary of tradingΒ at Sigma's three subsidiaries is set out below:Β 

PropertyΒ InvestmentΒ Β 

The trading backdrop forΒ Strategic Investment Management Limited ("SI"),Β Sigma's property subsidiary,Β remainedΒ extremely difficult. During the first half, SI wasΒ focused on the completion of its 7thΒ limited partnership and the launch ofΒ a new limited partnership.Β SIΒ nowΒ intends toΒ capitaliseΒ theΒ outstanding feesΒ ofΒ approximatelyΒ Β£1.9mΒ dueΒ from thisΒ 7thΒ partnership, whichΒ willΒ result inΒ the successfulΒ full capitalisationΒ of thisΒ partnership and the acquisition of a significant asset for theΒ Group. ThisΒ will beΒ in addition to the investment of Β£0.5m in this partnership already held in the balance sheet. At the same time,Β in the light of commercial property values, SI has takenΒ a cautious view of theΒ currentΒ value of theΒ totalΒ assetΒ andΒ has madeΒ a provision of Β£1.8mΒ as at 30 June 2009.Β Notwithstanding this,Β the directors believe there will be significant realisableΒ futureΒ value in this asset,Β in excess of theΒ currentΒ carrying value.Β 

The launch of a new limited partnership was announced on 26Β JuneΒ 2009. However,Β SI is disappointed to report that this new limited partnership will not be proceeding,Β after the vendorΒ subsequentlyΒ withdrew from the deal.Β TheΒ associatedΒ abort costsΒ will beΒ Β£50,000. In addition,Β SI will not benefit fromΒ an expectedΒ Β£0.2mΒ net contribution to overheads in the second half of this year.

OnΒ 2 August 2009,Β SIΒ becameΒ a wholly owned subsidiary of Sigma andΒ the managementΒ isΒ engaged in a number of initiatives toΒ enhanceΒ the business.Β 

Venture CapitalΒ Fund Management

Sigma'sΒ venture capitalΒ portfolio,Β in whichΒ the GroupΒ alsoΒ hasΒ a directΒ investmentΒ interest of Β£1.7m,Β continues to perform well. This isΒ despite the economic backdrop and credit must go to the management teamsΒ at theΒ investeeΒ companiesΒ as well asΒ toΒ theΒ executive investment team working to assist them.Β Β 

We see significant value for theΒ Group in these holdings going forward.Β 

University IP commercialisationΒ 

Sigma's interest in university IP commercialisation is held inΒ FrontierΒ IP Group plc, whichΒ is currently accounted for as a subsidiary as Sigma ownsΒ 77.4% of the equityΒ in the company.

Frontier IP Group plcΒ hasΒ made a good start to itsΒ lifeΒ as aΒ PLUSΒ listed company,Β withΒ its involvement in theΒ establishment and First Closing of the firstΒ dedicatedΒ private equityΒ fundΒ for investment in intellectual property developed byΒ RobertΒ GordonΒ UniversityΒ as well asΒ its first portfolio client investment.Β It isΒ currentlyΒ working on a number of interesting new initiatives.

Sigma's half year resultsΒ areΒ expectedΒ to be announcedΒ onΒ 29Β SeptemberΒ 2009.

Enquiries

Company website:Β www.sigmacapital.co.uk

Sigma Capital Group plcΒ 

Graham Barnet, Chief Executive

T: 0131 220 9444

Biddicks

Katie Tzouliadis/ Sophie Lane

T: 020 7448 1000

Arbuthnot Securities

Tom Griffiths/ Neil Kirton

T: 020 7012 2000

This information is provided by RNS
The company news service from the London Stock Exchange
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