SGM.L Regulatory News (SGM)

15 Apr 2009 07:00



SGM

Sigma Capital Group plc

("Sigma" or the "Company")

Trading Update

Further to the trading update issued on 7 January 2009, the Directors are pleased to report that Sigma's final results for the year to 31 December 2008 will be ahead of current market expectations of a trading profit of £600,000 and loss before tax of £500,000, after investment write downs and bad debt provisions. Net assets, currently forecast to be 15.3p, will also be higher at 15.9p. 

Sigma is also announcing separately today details of the proposed demerger and listing on the PLUS Markets of its wholly-owned university IP commercialisation subsidiary, Frontier IP Limited ("Frontier IP"). The listing is being effected by way of a reverse takeover, which values Sigma's holding in Frontier IP at £3.5 million. Following the completion of the listing, Sigma will hold a maximum of 77.4% of the issued share capital of the PLUS quoted company, which will continue to be accounted for as a subsidiary of Sigma. Further details of the listing and an associated placing, to raise £633,000 of new equity for Frontier IP, are set out in that announcement.  

Sigma's holding in Frontier IP is currently carried at nil value and the consideration received would, if recognised in Sigma's balance sheet, increase its unaudited net assets per share by a further 7.5p to 23.4p.

While economic conditions remain uncertain, the Board of Directors believes that Sigma is well-placed to take advantage of the return to a more stable business environment. The Company's cost base, on a like-for-like basis, has been reduced by over 20% year-on-year and the Company also has a strong balance sheet, with substantial cash resources, and significant contracted revenue. 

The Directors look forward to providing a further update on trading and prospects on 30 April 2009, when the Company's final results will be announced.

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