TIDMSGM
RNS Number : 8497L
Sigma Capital Group PLC
24 April 2018
24 April 2018
AIM: SGM
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Group" or the "Company")
The private rented sector ("PRS") and urban regeneration
specialist
Final Results
For the twelve months to 31 December 2017
HIGHLIGHTS
Summary
-- A pivotal year - successful launch of The PRS REIT plc
("PRS REIT") via an IPO in May 2017:
- it is the first UK-quoted REIT to focus on PRS investment
and is now Sigma's main focus
- Sigma is responsible for the delivery of the PRS REIT's
initial goal to create a GBP1bn+ portfolio of 10,000+
high-quality, newly-built rental homes
-- PRS REIT's resources are targeted to be c.GBP900m with
gearing, equivalent to c.6,200 new homes
-- Sigma's growth and earnings profile have been significantly
transformed
-- Sigma today has c.1,383 homes under construction for delivery
to the PRS REIT, via its unrivalled PRS Platform
- sites for a further c.4,000 homes have been identified
-- Significant and growing demand for rental homes for families
should support Sigma and the PRS REIT's long-term prospects
Financial
-- Revenue of GBP4.4m (2016: GBP5.38m)
-- Profit from operations of GBP3.12m (2016: GBP3.37m)
-- Profit before tax of GBP4.06m (2016: GBP3.67m)
-- Earnings per share of 4.15p (2016: 4.02p)
-- Net assets per share of 45.1p (2016: 40.7p)
-- Net cash of GBP6.2m (2016: GBP6.1m)
Operational
-- Sigma committed the PRS REIT's entire IPO equity (GBP250m
gross) by early January 2018, well ahead of schedule:
- this represents c.1,720 properties, with an estimated
rental value ("ERV")of GBP15.7m pa. Construction is
underway across 26 sites in North West, Midlands and
South Yorkshire
-- Sites for a further c.1,380 new homes (GDC of c. GBP200m)
for the PRS REIT were secured - underpinned by debt facilities
-- Existing Managed PRS activities - with Gatehouse Bank
and UK PRS Properties - also progressed well
Post-period
-- In February 2018, Sigma completed second GBP250m (gross)
placing for the PRS REIT
-- In January 2018, Sigma secured credit-approved terms for
GBP200m of debt facilities for the PRS REIT
-- Further development opportunities, with GDC of GBP600m
have been identified for the PRS REIT - represents an
additional c.4,000 new homes (over and above 3,100 homes
already under construction or in planning)
-- PRS Platform deepened and broadened:
- new Framework Agreement with Keepmoat Homes for increased
housing delivery in South Yorkshire and East Midlands
- first collaboration with Galliford Try Partnerships
commenced
- discussions underway with Countryside, key house building
partner, to expand activity
-- Homes England remains supportive
-- Three development sites acquired with a GDC of c.GBP31.0m,
with additional site acquisitions expected in 2018
- completed and let sites are expected to be acquired
by the PRS REIT when completed
Graham Barnet, CEO of Sigma, commented:
"It has been a remarkable year for Sigma. 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.
"We are wholly focused on delivering the PRS REIT's initial goal
of creating an initial 10,000 high-quality new rental homes for
middle-income families, and are confident that, with our unrivalled
PRS Platform, supported by our house building partners as well as
by central and local government, Sigma is well-placed to achieve
its objectives."
Enquiries:
Sigma Capital Group Graham Barnet, Chief Executive T: 020 3178
plc 6378 (today)
Malcolm Briselden, Finance Director T: 0333 999
9926
KTZ Communications Katie Tzouliadis, Irene Bermont-Penn, T: 020 3178
Emma Pearson 6378
N+1 Singer James Maxwell, Liz Yong, Michael T: 020 7496
(NOMAD and Broker) Taylor 3000
NOTES TO EDITORS
About Sigma Capital Group plc
(www.sigmacapital.co.uk)
Sigma Capital Group plc is a private rented sector, residential
development, and urban regeneration specialist, with offices in
Edinburgh, Manchester and London. Sigma's principal focus is on the
delivery of large scale housing schemes for the private rented
sector. It has a well-established track record in assisting with
property-related regeneration projects in the public sector, acting
as a bridge between the public and private sectors. Its subsidiary,
Sigma PRS Management Limited, is Investment Adviser to The PRS REIT
plc.
About Sigma PRS Management Limited
Sigma PRS Management Limited is a wholly owned subsidiary of
AIM-quoted Sigma Capital Group plc and is the Company's Investment
Adviser. It sources investments and manages the assets of The PRS
REIT plc and advises the Alternative Investment Fund Manager
("AIFM") and the PRS REIT on a day-to-day basis in accordance with
the PRS REIT's Investment Policy. The Investment Adviser is an
appointed representative (reference number: 776293) of the
AIFM.
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 and to provide
shareholders with an attractive level of income together with the
potential for capital and income growth. In its Initial Public
Offering, on 31 May 2017, the Company raised GBP250m (gross) of
equity capital, and, on 20 February 2018, raised a further GBP250m
through an additional Placing. Both fundraisings were supported by
the UK Government's Homes England (formerly Homes and Communities
Agency), with direct investments totaling c. GBP30 million.
CHAIRMAN'S STATEMENT
INTRODUCTION
I am delighted to present Sigma's results for the year to 31
December 2017. As we stated in our interim report, 2017 was a
landmark year in the scaling of our Private Rented Sector ("PRS")
model. The launch of The PRS REIT plc ("the PRS REIT" or "the
REIT"), on 31 May, and subsequent commencement of our activities on
behalf of the REIT, have transformed Sigma's growth prospects and
earnings profile. Our financial results for the year show only the
beginnings of this transition, which should come through more fully
in the new financial year and beyond, as we support and drive the
PRS REIT's initial target to create a portfolio of over 10,000
high-quality rental homes in the UK, predominantly for
families.
As of today, through our PRS Platform, we are responsible for
the delivery of hundreds of new rental homes across multiple sites
in multiple regions of England for the PRS REIT. This number is
rising progressively as we continue to deploy the REIT's resources,
in line with its investment objectives.
With GBP500m of equity capital currently in place, once fully
geared, the PRS REIT's resources are expected to total
approximately GBP900m, which equates to some 6,200 new rental
homes. Sigma's Platform has identified a pipeline of development
opportunities amounting to in excess of GBP600m gross development
cost ("GDC") or some 4,000 new homes. We are in the process of
appraising and delivering on this, as well as advancing the
delivery of the original c. 3,100 new homes planned at the launch
of the REIT in May 2017, which uses the IPO proceeds and GBP200m of
gearing.
With our business now principally focused on driving the PRS
REIT's growth and investment objectives, the visibility of the
Group's revenue streams is significantly greater. Now that the
REIT's capital base is in place, the main variables for Sigma are
not the quantum of delivery but the timing of development
management fees relative to Sigma's year end, and the relative mix
of our income streams. Our income streams are broadly
threefold:
-- development profits on the assets we build, and subsequently
sell;
-- development management fees for the assets we procure and
deliver; and
-- asset management fees for the overall management of the
assets.
The new financial year has started well for Sigma. We are
continuing to extend our PRS Platform to support ongoing growth,
and, in March 2018, commenced our first construction project with
Galliford Try Partnerships, a subsidiary of Galliford Try PLC. This
project is seen as a precursor to a broader relationship. We are
also looking to scale existing relationships with our current
Platform partners, in particular, Countryside Properties.
The rate of our delivery for the PRS REIT remains strong, and we
look forward with confidence to continuing progress in 2018.
FINANCIAL RESULTS
Group revenues for the year ended 31 December 2017 were GBP4.44m
(2016: GBP5.38m), which includes a first contribution from
activities related to the PRS REIT.
As expected, profit from operations was slightly lower than last
year, at GBP3.12m (2016: GBP3.37m). Profit from operations from
Sigma's self-funded PRS activities rose by 48% to GBP3.1m (2016:
GBP2.1m) while managed PRS activities generated a loss of GBP0.3m
(2016: profit of GBP0.6m), and the contribution from regeneration
activities contribution was GBPnil (2016: GBP1.5m). The Group's
non-core venture capital and other holding activities contributed a
profit from operations of GBP0.3m (2016: loss of GBP0.8m).
Administrative expenses increased to GBP4.3m (2016: GBP3.6m) as
we increased the number of our employees to support growth.
Profit before tax rose by 11% to GBP4.06m (2016: GBP3.67m), and
basic earnings per share increased to 4.15p (2016: 4.02p).
The Group's net asset backing continued to strengthen, with net
assets per share at the year-end up by 11% to GBP40.04m (2016:
GBP36.09). This is equivalent to 45.1p per share (31 December 2016:
40.7p per share).
With ongoing investment in PRS activities, cash at 31 December
2017 only rose slightly to GBP6.2m (2016: GBP6.1m).
OPERATIONAL OVERVIEW
The PRS REIT
Following the successful IPO of the PRS REIT in May 2017, Sigma
PRS Management Ltd ("Sigma PRS"), a wholly-owned subsidiary of the
Group, was appointed as Investment Adviser.
The REIT, which has attracted support from Homes England
(previously known as the Homes and Communities Agency), a public
body sponsored by the Ministry of Housing, Communities & Local
Government, as well as some of the largest institutional investors
in Europe, raised initial equity of GBP250m at IPO and in the new
financial year, in February 2018, raised an additional GBP250m.
The PRS REIT is building its portfolios in two ways:
-- Undeveloped Sites
It is acquiring undeveloped sites, sourced by Sigma PRS,
with Sigma PRS managing their subsequent development, as
well as the letting of the newly-built homes, via our PRS
Platform. The PRS REIT has first right of refusal over the
Sigma pipeline of developments and aims to fund a minimum
of two-thirds of the new properties this way.
Sigma earns a development management fee of 4% of GDC, which
in part reflects the value of, and the PRS REIT's exclusive
access to, Sigma's PRS Platform.
-- Completed Sites
The REIT is acquiring fully completed PRS sites from Sigma
(and/or one of its subsidiaries) that accord with its investment
objectives, and satisfy certain return and occupancy hurdles.
The PRS REIT can fund up to a maximum of a third of new
properties in this manner.
Sigma earns development profits from these sites, and receives
rental income until the point of sale. At sale, sites are
valued by Savills, as valuer to the PRS REIT.
As well as earning development management fees and development
profits, Sigma also earns an asset management fee. This is
calculated as a percentage of the net asset value ("NAV") of the
PRS REIT's portfolio, with a sliding scale applied. Sigma earns 1%
of the value of the REIT's adjusted net assets up to GBP250m, with
this percentage moving to 0.9%, 0.8% and 0.7% at certain
thresholds. 0.7% is earned on the value of the REIT's adjusted net
assets value of over GBP1bn.
At the start of the new financial year, Sigma PRS had identified
and fully committed the net proceeds of the PRS REIT's IPO
fundraising, which was ahead of schedule. The total volume of new
homes expected from this capital is approximately c.1,720 and the
new homes will be constructed across 26 sites, in the North West,
Midlands and South Yorkshire. Principally, designed for families,
the properties are expected to generate an estimated rental value
("ERV") of GBP15.7m per annum for the PRS REIT when completed and
fully let. Sigma sold four sites, which it had developed, to the
PRS REIT for GBP31.7m in 2017, crystallising a profit of
c.GBP2.8m.
In the new financial year to date, a further four development
sites, with a GDC of c.GBP38.0m, are currently under construction,
and their sale by Sigma to the REIT is expected by the end of 2018
after the new homes have been completed and let. Sigma has also
acquired three additional new sites in the new financial year,
which will be developed for a total GDC of c. GBP31.0m. The homes
on these sites are expected to be completed in 2019.
By 31 March 2018, we delivered an additional 276 homes to the
REIT, via our PRS Platform. These new homes are generating an
annualised rental income stream of GBP2.4m. As at that date, , we
had also managed the delivery of a further 73 homes, which will be
sold to the REIT when the whole sites complete. These assets
comprise the balance of 'The First Acquisition Portfolio' as
identified in the REIT's prospectus of 4 May 2017.
As we have highlighted, our PRS Platform underpins our activity,
and remains pivotal in sourcing and developing investment
opportunities for the PRS REIT. It comprises our construction
partners, including Countryside Properties, Keepmoat Regeneration
and Engie, as well as local authorities. Homes England also
continues to work closely with us in our common goal of
accelerating new housing delivery in England.
During the year, we continued to open up discussions with new
potential partners in order to expand our geographic reach,
construction and supply chain resource. I am pleased to report that
in the new financial year, we embarked on a first collaboration
with Galliford Try Partnerships. This project is a 40 home site
which should complete in spring 2019. Galliford Try Partnerships
and its national housing division Linden Homes, both have a
reputation for delivering high quality homes, and we envisage
creating many hundreds of PRS homes, and intend to open up new
geographies, especially in the West and South West of the
England.
We are also in discussions with Countryside, our key
construction partner, to accelerate the volume of completed new
homes over the course of 2018 and beyond. These homes will be
predominantly located across the North West, East, the Midlands,
and the South of England.
Our activities with Keepmoat Homes and Engie in Sheffield and
South Yorkshire, continue to progress. In February, we signed a new
Framework Agreement with Keepmoat Homes for increased housing
delivery in South Yorkshire and East Midlands, and we look forward
to expanding our work with both Keepmoat Homes and Engie over the
course of 2018 as both businesses refocus after corporate activity
arising from the demerger of Engie from the Keepmoat Group.
In the new financial year, in February 2018, the PRS REIT also
secured a second major round of equity funding, raising GBP250m
gross through a placing. We are also currently in the process of
completing debt facilities worth a combined GBP200m on behalf of
the PRS REIT, in accordance with the PRS REIT's stated
strategy.
Gatehouse Bank (Phase 1)
As we stated in our interim report, we completed the development
of our first PRS activities with Gatehouse Bank in February 2017,
delivering 918 new family rental homes across multiple sites in the
North West of England in just over two years. The homes are now
generating an annual rental income of approximately GBP7.5m for
Gatehouse Bank. Sigma earns an asset management fee of
approximately GBP0.48m from this. The Company also holds a carried
interest element, subject to agreed hurdle rates, which will be
realised when the properties are sold.
UK PRS Properties (Phase 2)
Our venture with UK PRS Properties, which is principally backed
by the Kuwait Investment Authority and institutional shareholders
from the State of Kuwait, represented a second phase of PRS
activity. We are delivering a portfolio of 684 new rental
properties for this venture. These homes have a GDC of GBP94m and
are located across sites in the North West and Midlands.
To date, we have delivered 508 completed homes through our PRS
Platform, with the remaining 176 currently under construction.
COMMUNITY SUPPORT
Our PRS activities typically take us into the heart of the
communities, and Sigma has often engaged with schools and
charities, to support local projects. We are now advancing plans to
formalise our activities and look forward to announcing our new
initiatives over the coming months.
OUTLOOK
The PRS REIT has gathered significant momentum and, when fully
geared, its resource base will total c.GBP900m. This means that we
will be driving the delivery of c.6,200 high-quality, new homes for
rent. We are progressing well, with an additional GBP600m of
opportunities identified today over and above our initial delivery
of c.GBP450m.
The majority of these new homes will be delivered as
'undeveloped sites', where our role is to source sites and manage
their development and letting through our PRS Platform. The
remainder will comprise 'completed sites', where we acquire and
fully develop sites for onward purchase by the REIT, subject to the
sites meeting the REIT's required investment returns.
With this roadmap in mind, prospects for Sigma remain very
exciting, and we are working with our partners to ensure that the
full potential of the opportunity can be realised effectively and
efficiently.
Demand for rental homes, especially family homes, is growing
strongly, and the Private Rented Sector as a new, emerging asset
class in the UK is increasingly evident. By 2020, commentators
estimate that PRS will make up some 25% of all households, from
approximately 19% today. Currently there is a pipeline of an
estimated GBP17 billion of rented stock, with a forecast
requirement of GBP300 billion over the next five years leaving a
very large gap in delivery.
Sigma is well-placed for continuing growth and we would like to
express our thanks to all stakeholders who have supported and
backed Sigma and the PRS REIT, and who share our goal of creating
high-quality, new homes for families.
David Sigsworth, OBE
Chairman
STRATEGIC REPORT
The Directors have pleasure in presenting their Strategic Report
for the year ended 31 December 2017.
Business activities and Group structure
Sigma, together with its subsidiaries, is a property group
principally focused on the PRS sector. Its activities also
encompass urban regeneration and property asset management.
Sigma is a public limited liability company incorporated in
England. It acts as a holding company and at 31 December 2017 had
five principal wholly-owned subsidiaries:
- Sigma Capital Property Ltd ("SCP")
- Sigma PRS Management Ltd ("Sigma PRS")
- Sigma Inpartnership Ltd ("SIP")
- Strategic Property Asset Management Ltd ("SPAM")
- Sigma Technology Investments Limited ("STI")
The Group's PRS activities are carried out by SCP and its
subsidiaries. During 2017, the Group announced the launch of The
PRS REIT plc ("PRS REIT") and that it had successfully raised
GBP250m of gross proceeds through a significantly oversubscribed
IPO to invest in and deliver PRS homes. Sigma PRS is Investment
Adviser to the PRS REIT, with a five year management contract. It
is also development manager to the PRS REIT. SCP continues to
invest in its own self-funded portfolio of private rented homes
and, during the year, completed the sale of four fully developed
and let PRS sites to the PRS REIT. SCP is active on a further seven
PRS sites, of which four are expected to be completed, fully let
and sold to the PRS REIT during 2018. The Group's first PRS joint
venture with Gatehouse Bank plc commenced in November 2014 and, in
March 2017, completed the delivery of 918 new family homes for the
private rental market with rental levels continuing to exceed
initial budget expectations. In December 2015, a second phase of
PRS homes was launched with UK PRS Properties (a fund principally
backed by the Kuwait Investment Authority and institutional
shareholders from the State of Kuwait). This second phase continues
to progress well and is currently active on eight sites for the
delivery of 684 new family rental homes of which 508 having already
been completed.
The Group's property regeneration activities are largely carried
out by its subsidiary, SIP, which undertakes large-scale
property-related regeneration projects, working as a bridge between
public and private sector organisations. Founded in 2000 and
operating from offices in Manchester, SIP established three
partnerships, with Liverpool City Council, Salford City Council and
Solihull Metropolitan Borough Council. The partnerships hold option
arrangements with each local authority partner for the delivery of
a mix of residential, commercial, education and health schemes.
Most of the Group's property management activities, which sit
outside of its PRS and local authority relationships, are
undertaken by SPAM. Until early 2016, the Group acted through SPAM,
as property manager for its historic property limited partnership,
SI Limited Partnership No 7. This partnership holds the investment
in the City Wharf development in Aberdeen. The Group has a 19.3%
holding in SI Limited Partnership No 7, although this investment
was written down to nil in 2009.
Whilst the Group has ceased its venture capital management
activities, it still holds an interest in a venture capital fund
and in a direct non-quoted equity investment both of which are held
in STI.
Key strategy
Our core strategy is to utilise our property and capital raising
expertise whilst working with local authorities, house building and
funding partners, along with Homes England, to further our PRS
activities and maintain our position at the forefront of the
private rented sector.
This sector is now critically important in addressing the
effects of the structural supply problems in the UK housing market
and helping those disenfranchised from home ownership by
affordability constraints. The sector additionally addresses the
needs of an increasing group of those who simply enjoy the
flexibility that renting professionally managed new homes offers.
Commentators estimate that the PRS sector will make up some 25% of
all households by 2020, from approximately 19% today. Currently
there is a pipeline of an estimated GBP17 billion of rented stock
with a forecast requirement of GBP300 billion over the next five
years leaving a very large gap in delivery.
In terms of the geographic roll out, Sigma's strategy is to
extend its activities beyond its existing local authority
partnerships to other core cities in England. Our main direction of
travel for these new opportunities is expanding our delivery in the
Midlands and expanding into the south of England, broadly following
the route of HS2, the largest infrastructure project in the UK. We
have now delivered over 1,800 homes in a little over three years
and our current overall active pipeline is in excess of 6,200 PRS
homes in the major regions of England.
This PRS model is the key component of our strategy for 2018 and
will continue to be executed through our dedicated Sigma PRS
Platform.
The most exciting element to our strategy going forward was the
flotation in May 2017 of the first-ever UK-quoted REIT,
specifically focused on investment in the private rented sector.
The PRS REIT raised GBP250m of gross equity and in the new
financial year, in February 2018, raised a further GBP250m of gross
equity via its Placing Programme. This, coupled with the Homes
England debt facility and our expanded housebuilding partnerships,
allows a significant acceleration of our delivery capability and
also enables Sigma to redeploy its capital through the REIT's
purchase of Sigma's seed portfolio.
Overview of the business
Private Rented Sector residential portfolio
Our PRS model, which has been designed to address the need for
new homes in the UK, allows us to move residential land assets with
planning permission, predominately from local authority
partnerships and our house building relationships, to our fund
structures.
From a local authority perspective, the key advantage is that it
benefits from the delivery of large-scale high quality housing
significantly more quickly than any other tenure, meeting both an
urgent social need and wider regeneration objectives. This is
achieved as the PRS model delivers houses typically at four to five
times the rate of those built 'for sale' which tend to be built at
the pace of sales demand and which are restricted by mortgage
availability.
Furthermore, the local authorities benefit from increased
council tax receipts from the new homes as well as from the
Government's new homes bonus. The rapidity of delivery provided by
our Platform is both attractive to and synergistic for our
housebuilding partners as it offers an enhanced return on capital
as well as derisking and quickly maturing those sites on which
there are a mix of 'for sale' and PRS homes.
The PRS REIT plc
In May 2017, the PRS REIT raised GBP250m gross proceeds through
an oversubscribed IPO to invest and deliver PRS homes. The launch
of the PRS REIT represents a fundamental transformation of Sigma's
model. The Company has a 5 year management contract with the PRS
REIT as Investment Adviser, and is also Development Manager. This
should provide a predictable future revenue stream.
At the end of 2017, the IPO proceeds had been fully committed
and will deliver c.1,720 family homes. Since the year end, the PRS
REIT has agreed debt facilities with both Scottish Widows and
Lloyds Banking Group, which totals GBP200m. This will help deliver
a further 1,380 PRS homes. In February 2018, the PRS REIT
successfully raised a further GBP250m of gross equity funding
through its Placing Programme and when debt funding is applied it
is set to deliver a further 3,100 homes.
Sigma is remunerated by the PRS REIT in two ways. Firstly, Sigma
receives an investment advisory fee which is based on an adjusted
net asset value of the PRS REIT and secondly it receives a
development fee in respect of sites that are developed directly by
the PRS REIT.
In addition, through a forward purchase agreement, the PRS REIT
will acquire completed and fully let sites from Sigma, allowing the
Company to recognise any revaluation gains. As at 31 December 2017,
a total of four developed and let sites had been sold to the PRS
REIT.
Sigma Self-funded PRS
In 2015, the Company raised GBP20m (gross) from a share placing
to create a substantial portfolio of self-funded PRS assets
leveraging its existing PRS infrastructure and relationships. In
2016, the Group agreed a GBP45m revolving credit facility with
Homes England, materially up scaling our delivery of self-funded
new rental homes. The initial or 'First Acquisition Portfolio',
consisting of eight investment sites, is earmarked for the PRS REIT
and during 2017 the Company successfully sold four developed and
let sites, releasing capital for further investment into new PRS
homes. The Company is currently active on a further seven
investments sites. Four of these are expected to be completed and
let during 2018 with the remainder ready in 2019. Demand for the
properties continues to be strong, and the properties are letting
quickly and generating gross rental income in excess of that
originally forecast.
2017 saw the continued progression of our PRS brand 'Simple
Life' (www.simplelifehomes.co.uk), through which all our sites are
be marketed including those developed by the PRS REIT. The creation
of this consumer brand helps to identify our product to potential
customers and, over time, we are aiming for Simple Life to be
recognised as the 'gold standard' for tenant experience.
Joint Venture with Gatehouse Bank plc - Phase 1
This first phase of homes is built on land procured by Sigma and
is underpinned by our existing local authority partnerships.
Gatehouse, a leading London-based Shariah compliant investment bank
with a real estate portfolio worth in excess of GBP1 billion across
the UK and Europe, delivered the equity element of the venture
whilst Barclays Bank plc provided the debt financing.
This first phase was completed in March 2017, and consists of
918 new privately rented residential properties in the North West
of England, with construction costs as forecast. The sites continue
to perform well with current occupancy in excess of 95% let and
rental levels continuing to be in excess of those originally
forecast. For those properties, which have been let for in excess
of 12 months, we are experiencing a renewal rate of over 70% rate
with existing tenants. The properties have been let by the SDL
Group under the brand, 'DIFRENT'.
Joint Venture with UK PRS Properties - Phase 2
Our second phase of PRS homes in partnership with UK PRS
Properties commenced in December 2015 and comprises the
construction of 684 family homes over eight sites in the North West
and Midland regions of England. To date, 508 properties have been
delivered with lettings progressing well and rental levels at or in
excess of those forecast. As with phase 1, the new homes are being
let by the SDL Group under the 'DIFRENT' brand.
The PRS phases with Gatehouse and UK PRS Properties generate
fees for the Group. An upfront fee is paid on commencement of a
site, a management fee is paid quarterly over the duration of the
delivery period, and a quarterly asset management fee is paid once
the properties are let. Sigma also retains a share of the net
profits on disposal of the assets subject to a minimum return to
investors.
Urban regeneration
Liverpool Partnership (also referred to as Regeneration
Liverpool)
Our Liverpool Partnership is a limited liability partnership
formed in 2007 between SIP and Liverpool City Council. The
partnership was given an initial ten year option over a 60 acre
residential development site, known as Norris Green, which had
outline planning consent for around 800 new homes, with a total
development value of c. GBP120 million. The partnership was
established with the flexibility to develop additional sites at the
discretion of Liverpool City Council and, over the last few years,
the Council increased the number of sites under option. The key
sites added have been Gateacre, the former Queen Mary School site
and Lime Street/Knowledge Quarter. Although the initial partnership
period has ended, the Liverpool Partnership will continue to
develop and manage those sites under option until completion.
In 2012, we formed a joint venture company with a major local
commercial property development company, ION Developments Limited
(formerly Neptune Developments Limited), to help accelerate the
delivery of the commercial regeneration projects in Liverpool. In
2013, we established a second joint venture company, Countryside
Sigma Limited, with house building specialist, Countryside, to
assist us in the delivery of residential regeneration projects in
the City.
Land in the Liverpool Partnership can be developed using any one
of the following three ways: by the Liverpool Partnership (with SIP
earning a management fee and participating in a profit share); by
SIP (with SIP earning a fee and an agreed priority profit); or by
the Liverpool Partnership selling a site on the open market, with
SIP earning a percentage of the sales price achieved. At least 20%
of the land must be disposed of by sale on the open market. The
majority of the land will be developed by SIP through our venture
companies with Countryside and ION Developments Limited.
Residential Projects
The regeneration of the site at Norris Green continues to make
excellent progress with the final phase nearly complete. The
development consists of eight phases totaling 829 properties of
which 394 properties are for sale, 214 are affordable homes and 221
are private properties for rent delivered by our PRS joint
ventures. Seven of the phases are complete and construction is
progressing well on the final phase of 269 homes, 200 being for
sale and 69 for rent. At the end of March 2018 we had completed 825
of the homes for sale and all of the 221 PRS properties are
complete and let.
Construction on the former Queen Mary School site, which is
approximately one mile from Norris Green has completed. The scheme
comprised a total of 200 new homes, with 64 homes designated for
the PRS Fund. All of the PRS units have been constructed and are
fully let, with rents in line with or in excess of that originally
targeted and all the 136 open market for sale homes have been
sold.
Construction continues to progress well at Gateacre, a 19 acre
former secondary school. The site consists of 231 new family homes
for open market sale ranging from two and three bedroom town houses
to five bedroom executive detached homes. The site is being
marketed from two sales areas and uptake has been excellent with
7-8 units currently being completed per month. To date, 164 of the
new homes are sold or reserved, since the show homes opened in
January 2017.
Commercial Projects
In October 2016, working with Liverpool City Council and our
commercial development partner, ION developments, we commenced the
redevelopment of Lime Street Eastern Terrace, Liverpool. This
mixed-use development incorporates a c.400 bedroom student
residence, a c.100 bedroom hotel, which is pre-let to Premier Inn,
along with 30,000 sq.ft of retail and leisure units with completion
of the scheme on track for the summer of 2018. There has been good
occupier interest in the retail and leisure units and we are under
contract with a food and beverage operator for a unit of 7,500
sq.ft and in addition, legal discussions are progressing with an
occupier of a further unit of 17,500 sq.ft.
Salford Partnership (also known as Higher Broughton
Partnership)
The Salford Partnership is our partnership with Salford City
Council and Royal Bank of Scotland.
During the year, we dealt with residual matters arising from
previous residential and commercial projects of the Salford
Partnership.
Sigma's strong relationship continues with Salford City Council
to bring additional land for delivery for PRS. As previously
reported a total of four sites and 206 units have been developed as
part of the initial phase of our PRS Fund with Gatehouse and a
further two sites consisting of 220 units are being developed as
part of the joint venture with UK PRS Properties. We have acquired
two additional sites in Salford on behalf of the REIT and we expect
to acquire four more over the coming months.
North Solihull Partnership
The Partnership was set up in 2007 by Solihull Metropolitan
Borough Council, Bellway Homes, West Mercia Housing Association and
SIP, with a remit of coordinating and delivering the regeneration
of an area of circa 1,000 acres in North Solihull. The key
objectives of the Partnership are to deliver new and replacement
housing stock, ten new or refurbished primary schools and five new
village centres incorporating neighbourhood council, medical and
retail facilities. Our key role is the provision of development
management services, including strategic development planning,
coordination and procurement of development works, in return for
agreed fees for these services. We continue to provide strategic
advice to the Partnership on developments whilst our relationship
with the Partnership allows us to look at PRS opportunities and we
are actively in discussions with the council in that respect.
Venture Capital activities
Sigma continues to be a limited partner in one venture fund
which was transferred to Shackleton Ventures Limited in 2013 with
its investment in the fund held by STI. Sigma also holds one
investment in an unquoted company.
FINANCIAL REVIEW OF 2017
The Group's revenue decreased by 17.6% to GBP4,437,000 (2016:
GBP5,383,000) as development schedules were altered in the short
term to provide the PRS REIT with a significant and immediate
pipeline of development opportunities when it launched. Revenue
included investment management and development management fees from
the PRS REIT, revenues from our managed PRS activities with
Gatehouse and UK PRS Properties along with rental income from our
self-funded portfolio. Gross profit decreased by 12% to
GBP4,334,000 (2016: GBP4,923,000).
The Group made a trading profit in the year of GBP66,000 (2016:
GBP1,325,000), with property activities contributing a trading
profit of GBP105,000 (2016: GBP2,196,000). The discontinued venture
capital activities suffered a trading loss of GBP8,000 (2016:
trading profit of GBP8,000) and the trading profit was impacted by
the costs incurred by the holding company on Group matters.
Administrative costs increased to GBP4,268,000 (2016:
GBP3,598,000) reflecting the full impact of the increase in the
number of employees as a result of our increased investment in PRS
activities including the PRS REIT.
Profit from operations reduced slightly by 7.4% to GBP3,116,000
(2016: GBP3,365,000) including gains from investment property of
GBP2,727,000 (2016: GBP2,017,000) and an unrealised gain on
investments of GBP323,000 (2016: GBP23,000).
Profit before tax was GBP4,057,000 (2016: GBP3,670,000), which
represents an increase of 10.5%. Profit before tax for the prior
year was adversely affected by an exceptional item of GBP428,000.
This related to the Group's managed PRS activities and the
termination of the Group's agreement with Torrin Asset
Management.
Net assets of the Group increased by 11% to GBP40,035,000 at 31
December 2017 (31 December 2016: GBP36,087,000). Net assets at 31
December 2017 were equivalent to 45.1p per share (31 December 2016:
40.7p per share).
Balance sheet
The principal items in the balance sheet are goodwill of
GBP533,000 (2016: GBP544,000), investment property of GBP29,205,000
(2016: GBP24,825,000), property and equipment of GBP1,123,000
(2016: GBP1,111,000), accrued income of GBP4,756,000 (2016:
GBP5,611,000), loans to the PRS Fund totalling GBPnil (2016:
GBP92,000), cash of GBP6,167,000 (2016: GBP6,125,000) and trade and
other payables of GBP4,898,000 (2016: GBP4,226,000).
The goodwill relates to the acquisition of SIP and is reviewed
each year for impairment. The investment property relates to
Sigma's own PRS assets. The property and equipment principally
relates to the Group's head office in Edinburgh. Accrued income
includes GBP1,673,000 expected to be received in 2018 and
GBP3,088,000 which is due greater than one year. The loans to the
PRS Fund of GBPnil were fully repaid in March 2017. The trade and
other payables of GBP4,826,000 includes GBP3,265,000 in relation to
its investment in property and was paid in January 2018.
The Group's current assets exceed its current liabilities by
GBP3,964,000 (2016: GBP4,492,000). The Group has two long term
liabilities totalling GBP523,000 (2016: one long term liability of
GBP481,000). These relate to a loan provided in relation to its
acquisition and redevelopment of the Group headquarters of
GBP426,000 and a development facility in respect of its self-funded
PRS of GBP97,000.
Cash flow
Cash balances improved slightly by GBP42,000 to GBP6,167,000
(2016: decreased by GBP19,010,000 to GBP6,125,000). In 2016, the
predominant reason for the cash outflow was due to the investment
in our self-funded PRS activities. In 2017 this continued, however,
the Company also realised the sale of property investments. Further
details are provided in the consolidated cash flow statement. The
cash inflow from operating activities was GBP1,786,000 (2016:
inflow of GBP2,353,000). The cash outflow from investing activities
was GBP1,786,000 (2016: outflow of GBP21,953,000) along with the
cash inflows from financing activities of GBP42,000 (2016:
GBP590,000).
Key performance indicators
The key performance indicators are concentrated on the property
activities.
The Group's key performance indicators include:
2017 2016
GBP'000 GBP'000 Change
Revenue - all property activities 4,424 5,373 (18%)
Operating profit - property activities 2,832 4,213 (33%)
Realised and unrealised profit on revaluation
of investment property 2,727 2,017 +35%
Group profit from operations 3,116 3,365 (7%)
Cash balances 6,167 6,125 +1%
Principal risks and uncertainties
The specific financial risks of price risk, interest rate risk
and credit risk are discussed in the notes to the financial
statements. The broader risks - financial, operational, cash flow
and personnel - are considered below.
The principal financial risk relates to the housing market where
a deterioration in the macro-economic outlook, the cyclical nature
of residential market and a fall in house prices may affect Sigma's
income and its ability to raise or deploy finance for housing
projects. The Group manages these risks by keeping abreast of any
trends so that any likely down turn is anticipated, maintaining
good funding relationships, ensuring a reputation of building a
good quality product and having diversity in its income streams. A
financial risk is where the Group develops its own investment
property and there may be increased costs from that originally
forecast. This risk is mitigated by securing fixed price design and
build contracts before the development commences. A further
financial risk is the reduction in the value of the Group's
investment property. This risk is mitigated by the number of
properties and their geographical location but also focusing on
ensuring that the properties are let to good quality tenants, and
are professionally managed so providing customers with a high level
of service. In addition, the Group seeks to acquire investment
sites at competitive prices.
The principal operational risks of the business reside around
management's ability to secure new contracted property income
streams from both residential and commercial property initiatives.
The Group's own self-funded portfolio, along with the appointment
as Investment Adviser and Development Manager to the PRS REIT, have
significantly increased the proportion of the Group's contracted
revenue compared with one-off income streams.
Where the Group undertakes property developments on its own
balance sheet, development risk is managed by maintaining close
control of pre-contract costs and by limiting the number of early
stage developments financed by the Group at any one time.
The main cash flow uncertainties of the business centre around
the timing of rental income in respect of its investment
properties, property project development fees and the receipt of
profits arising out of the partnerships.
The Group is dependent on its Executive Directors and senior
management for its success. There can be no assurance that the
Group will be able to retain the services of these key personnel
although historically the turnover of senior staff has been low.
Incentives for senior staff include share options and carried
interest in joint ventures, managed funds and Sigma's own PRS
portfolio.
Sustainability report
Sustainability is firmly at the heart of the planning and
housing system, and Sigma takes pride in working closely with our
partners and local housing associations and communities to create
sustainable, high quality developments.
Sigma currently focuses on creating new homes and communities in
the PRS sector in the major regions and areas of England. This has
led to significant contributions to GDP and social prosperity in
the region, not only revitalising neighbourhoods and creating much
needed homes but also creating new jobs. Our contribution to
increasing the housing stock is also a key source of revenue for
the government and local authorities.
Many of our developments are also near to local primary schools
and we will be increasing our support to much needed school
projects such as the refurbishment of libraries, the provision of
reading pods and computer equipment.
We are pleased to report that we continue to make good progress
in achieving our sustainability objectives and we look forward to
further developing our longer-term vision in providing better
environments for our customers to live.
Signed by the order of the Directors
Graham F Barnet
Chief Executive Officer
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
for the year ended 31 December 2017
2017 2016
GBP'000 GBP'000
Revenue 4,437 5,383
Cost of sales (103) (460)
Gross profit 4,334 4,923
Unrealised gain on revaluation of investment
property 1,915 2,017
Realised gain on revaluation of investment property 812 -
Unrealised profit on the revaluation of investments 323 23
Administrative expenses (4,268) (3,598)
Profit from operations 3,116 3,365
Finance income 285 290
Finance costs (196) -
Share of profit of associate company 852 443
Exceptional items - (428)
Profit before tax 4,057 3,670
Taxation (378) (105)
Profit for the year 3,679 3,565
======== ============
Profit per share attributable to the equity holders of the
Company:
Basic profit per share 4.15p 4.02p
Diluted profit per share 4.10p 3.97p
There were no other comprehensive incomes or losses in either
year other than those included in the comprehensive income
statement. The accompanying notes are an integral part of this
consolidated comprehensive income statement.
CONSOLIDATED BALANCE SHEET
at 31 December 2017
2017 2016
GBP'000 GBP'000
Assets
Non-current assets
Goodwill and other intangibles 533 544
Investment property 29,205 24,825
Property and equipment 1,123 1,111
Investment in joint venture 1,744 892
Fixed asset investments 2 2
Financial assets at fair value through profit
and loss 899 576
Trade and other receivables 3,088 4,126
-------- --------
36,594 32,076
-------- --------
Current assets
Trade receivables 950 323
Other current assets 2,403 2,622
Cash and cash equivalents 6,167 6,125
9,520 9,070
-------- --------
Total assets 46,114 41,146
-------- --------
Liabilities
Non-current liabilities
Interest bearing loans and borrowings 523 481
Current liabilities
Trade and other payables 4,826 4,226
Interest bearing loans and overdrafts 55 55
Current tax liability 72 -
Deferred tax liability 603 297
--------
Total liabilities 6,079 5,059
-------- --------
Net assets 40,035 36,087
======== ========
Equity
Called up share capital 887 887
Share premium account 31,885 31,885
Capital redemption reserve 34 34
Merger reserve (249) (249)
Capital reserve (7) (7)
Retained earnings 7,485 3,537
-------- --------
Equity attributable to equity holders of the
Company 40,035 36,087
======== ========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2017
Share Capital
Share premium redemption Merger Capital Retained Total
capital account reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2016 885 31,833 34 (249) (7) (241) 32,255
Transactions with
owners in their
capacity as owners
Issue of shares 2 52 - - - - 54
Comprehensive
income for the
year - - - - - 3,565 3,565
Share-based payments - - - - - 213 213
At 31 December
2016 887 31,885 34 (249) (7) 3,537 36,087
--------- --------- ------------ --------- --------- ---------- --------
Transactions with
owners in their
capacity as owners
Issue of shares - - - - - - -
Comprehensive
income for the
year - - - - - 3,679 3,679
Share-based payments - - - - - 269 269
At 31 December
2017 887 31,885 34 (249) (7) 7,485 40,035
========= ========= ============ ========= ========= ========== ========
There were no other comprehensive incomes or losses in either
year other than those included in the profit and loss for the
year.
Consolidated and company Cash Flow Statements
for the year ended 31 December 2017
Group Group Company Company
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash received/(used in) from operations 1,786 2,353 (3,317) (20,244)
Net cash used in operating activities 1,786 2,353 (3,317) (20,244)
--------- --------- -------- ---------
Cash flows from investing activities
Purchase of property and equipment (37) (1,102) - (50)
Purchase of investment property at fair
value through profit and loss (35,925) (22,808) - -
Proceeds from the sale of investment
property 34,273 - - -
Repayment of loans by PRS Fund 92 1,667 - -
Fixed asset investments - - -
Finance cost net of finance income (189) 290 5 73
--------- ---------
Net cash (invested in)/generated from
investing activities (1,786) (21,953) 5 23
--------- --------- -------- ---------
Cash flows from financing activities
Bank and other loans 42 536 - -
Issue of shares - 54 - 54
---------
Net cash generated from financing activities 42 590 - 54
--------- --------- -------- ---------
Net increase/(decrease) in cash and cash
equivalents 42 (19,010) (3,312) (20,167)
Cash and cash equivalents at beginning
of year 6,125 25,135 3,395 23,562
Cash and cash equivalents at end of year 6,167 6,125 83 3,395
========= ========= ======== =========
NOTES
1. This final results announcement was approved for issue by a
duly appointed and authorised committee of the Board of Directors
on 23 April 2018.
2. Basis of preparation
The financial information set out in this announcement does not
constitute statutory financial statements for the year ended 31
December 2017 or 31 December 2016. The Audit reports of the auditor
on the statutory financial statements for each of the years ended
31 December 2017 and 31 December 2016 were (i) unqualified; (ii)
did not include references to any matters to which the auditor drew
attention by way of emphasis without qualifying their report; and
(iii) did not contain statements under section 498(2) or (3) of the
Companies Act 2006. The statutory financial statements for the year
ended 31 December 2016 have been delivered to the Registrar of
Companies. The statutory financial statements for the year ended 31
December 2017 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
While the financial information included in this final results
announcement has been prepared in accordance with the recognition
and measurement principles of International Financial Reporting
Standards (IFRS) as endorsed for the use in the European Union,
this announcement does not itself contain sufficient information to
comply with IFRS.
3. Segmental information - business segments
At 31 December 2017 the Group has just one business activity,
property.
The Group had six significant customers in the year. Thistle
Limited Partnership was a significant customer with profit share
and carried interest earned of GBP620,000 (2016: GBP1,549,000), UK
PRS (Jersey) Properties I Limited with fees and carried interest of
GBP716,000 (2016: GBP1,247,000), Countryside Sigma Limited with
development management fees and profit share earned of GBPnil
(2016: GBP954,000), Countryside Properties (UK) Limited with fees
and sale of land totalling GBPnil (2016: GBP548,000), ION
Developments with fees totalling GBPnil (2016: GBP577,000) and The
PRS REIT plc with development and investment advisory fees earned
of GBP2,370,000 (2016: GBPnil).
The revenue from services from the Group's Owned PRS property
represents GBP488,000 (2016: GBP66,000) of gross rental income.
Rental operating costs attributable to the gross rental income for
the year were GBP103,000 (2016: GBP16,000).
The segment analysis for the year ended 31 December 2017 is as
follows:
Intra
Managed Owned Venture Holding group
Regeneration Property PRS Property Capital Company adjustments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue from services 38 3,898 488 13 - - 4,437
============= ========== ============== ========= ========= ============= ========
Trading profit/(loss) (11) (269) 385 (8) (20) (11) 66
Unrealised gain on
revaluation of investment
property - - 1,915 - - - 1,915
Realised profit on
revaluation of investment
property - - 812 - - - 812
Unrealised gain on
revaluation of investments - - - 323 - - 323
------------- ---------- --------------
Profit/(loss) from
operations (11) (269) 3,112 315 (20) (11) 3,116
Finance income 186 92 1 1 5 - 285
Finance costs - (14) (182) - - - (196)
Share of joint venture 852 - - - - 852
Profit/(loss) before
tax 1,027 (191) 2,931 316 (15) (11) 4,057
============= ========== ============== ========= ========= ============= ========
Total assets 7,134 5,621 31,674 3,787 33,436 (35,538) 46,114
Total liabilities (265) (8,635) (26,748) (1,678) (4,987) 36,234 (6,079)
------------- ---------- --------------
Net assets 6,869 (3,014) 4,926 2,109 28,449 696 40,035
============= ========== ============== ========= ========= ============= ========
Capital expenditure - 37 - - - - 37
Depreciation - 15 - - 10 - 25
============= ========== ============== ========= ========= ============= ========
Segmental assets
Net assets of the Group's Regeneration activities consists
mainly of its accrued income in respect of property projects. The
Group's Owned PRS Property consists of Investment property measured
at fair value. Venture Capital net assets includes its historic
investment in one venture fund and cash.
The segment analysis for the year ended 31 December 2016 is as
follows:
Intra
Managed Owned Venture Holding group
Regeneration Property PRS Property Capital Company adjustments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue from services 2,171 3,136 66 10 0 0 5,383
============= ========== ============== ========= ========= ============= ========
Trading profit/(loss) 1,538 607 51 8 (812) (67) 1,325
Unrealised gain on
revaluation of investment
property - - 2,017 - - - 2,017
Unrealised gain on
revaluation of investments - - - 23 - - 23
------------- ---------- --------------
Profit/(loss) from
operations 1,538 607 2,068 31 (812) (67) 3,365
Finance income 128 87 - 2 73 - 290
Share of joint venture 443 - - - - - 443
Exceptional items - (428) - - - - (428)
------------- ---------- -------------- --------- --------- ------------- --------
Profit/(loss) before
tax 2,109 266 2,068 33 (739) (67) 3,670
============= ========== ============== ========= ========= ============= ========
Total assets 6,060 4,971 25,796 3,444 29,853 (28,978) 41,146
Total liabilities (216) (7,486) (23,728) (1,651) (1,659) 29,681 (5,059)
------------- ---------- --------------
Net assets 5,844 (2,515) 2,068 1,793 28,194 703 36,087
============= ========== ============== ========= ========= ============= ========
Capital expenditure - 1,052 - - 50 - 1,102
Depreciation 1 13 - 2 7 - 23
============= ========== ============== ========= ========= ============= ========
4. Realised and unrealised gains on the revaluation of investment property
The total realised and unrealised gains during the year relating
to investment property through profit and loss are set out
below.
Group Group
2017 2016
GBP'000 GBP'000
Realised and unrealised gains through
profit and loss 2,727 2,017
2,727 2,017
======== ========
5. Unrealised profits on the revaluation of investments
The total fair value adjustments made during the year relating
to financial assets at fair value through profit and loss are set
out below.
Group Group
2017 2016
GBP'000 GBP'000
Financial assets at fair value
through profit and loss:
- the venture capital funds 96 23
- Unquoted securities 227 -
323 23
-------- --------
6. Taxation
There is a current and deferred taxation charge in the year.
The Group's deferred tax assets, other than those relating to
short term timing differences, are not recognised as it is not
sufficiently clear that losses will be capable of utilisation in
future periods.
7. Profit per share
The calculation of the basic profit per share for the year ended
31 December 2017 and 31 December 2016 is based on the profits
attributable to the shareholders of Sigma Capital Group plc divided
by the weighted average number of shares in issue during the
year.
Profit attributable
to shareholders
GBP'000 Weighted average Basic profit
number of per share
shares (pence)
Year ended 31 December
2017 3,679 88,715,715 4.15
==================== ================= =============
Year ended 31 December
2016 3,565 88,649,088 4.02
==================== ================= =============
Diluted profit per share is calculated by adjusting the weighted
average number of ordinary shares in issue on the assumption of
conversion of all potential dilutive ordinary shares. The Company
has only one category of potentially dilutive ordinary shares,
those share options granted where the exercise price is less than
the average price of the Company's shares during the year. Diluted
profit per share is calculated by dividing the same profit
attributable to equity holders of the Company as above by the
adjusted number of ordinary shares in issue during the year ended
31 December 2017 of 89,700,931 (2016: 89,750,427). For the year
ended 31 December 2017, the diluted earnings per share is 4.10
pence (2016: 3.97 pence).
8. Cash flows from operating activities
Group Group Company Company
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
Profits/(loss) after tax 3,679 3,565 (14) (739)
Adjustments for:
Share-based payments 269 213 269 213
Depreciation 25 23 10 7
Amortisation 11 17 -
Finance cost net of finance
income 189 (290) (5) (73)
Fair value (profit)/loss
on financial assets at fair
value through profit or loss (323) (23) - -
Share of associate profit (852) (443) - -
Unrealised profit on revaluation
of investment property (1,915) (2,017) - -
Realised profit on sale of
investment property (812) - - -
Changes in working capital:
Decrease in stocks - 509 - -
Trade and other receivables 538 (398) (3,654) (22,970)
Trade and other payables 977 1,197 77 3,318
--------
Cash flows from operating
activities 1,786 2,353 (3,317) (20,244)
======== ======== ======== =========
9. Availability of statutory financial statements
Copies of the full statutory financial statements will be
available from the Company's offices at 18 Alva Street, Edinburgh
EH2 4QG no later than 14 May 2018 and are available on its website
at www.sigmacapital.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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