Sigma sales meets expectations as it appoints new COO

Property and urban regeneration specialist Sigma Capital Group on Thursday reported a slight increase in profits in the second half of 2012 and said it was trading in line with expectations.

Property and urban regeneration specialist Sigma Capital Group on Thursday reported a slight increase in profits in the second half of 2012 and said it was trading in line with expectations.

Net cash at year-end rose to £1.0m from £0.7m over the six month period, meeting management's forecasts, but down from the £1.3m posted a year earlier.

Revenue in the second half was about 56% up over the first half and about 243% up over last year's result thanks to strong performance in the property division.

Full year revenues are expected to reach £2.3m, down from the £2.47m in 2011.

The trading loss for the year is anticipated to be £0.3m, compared to breakeven the previous year.

Net assets per share attributable to equity shareholders are pegged at 5.5p per share, down from 8.2p reported the year before.

"We are continuing to develop opportunities in residential property development and urban regeneration, property asset management and property funding," the company said.

Alongside the results, the company said it sold its North Arran Way, Smiths Wood Village Centre development in North Solihull.

The disposal of the property, developed in partnership with the local council, will generate a profit of £225,000 over the next year.

The development comprises a 30,000 sq ft, two storey commercial development, with 16,000 sq ft of office accommodation and eight retail units.

The office space accounts for 60% of the rent roll and has been let to the Solihull Metropolitan Borough Council on a 15 year lease.

The retail units have been let to Boots, Spar, Greggs and local businesses.

Work on the development is due to begin in February and completion is expected in early 2014.

Sigma is also working on infrastructure in the development of its next urban centre in North Solihull at Craig Croft.

The Craig Croft development includes a new medical centre, mixed office and retail development and an enterprise centre for the local community. Works are due to start in March and finish by April 2014.

"I am pleased with the progress that we are making with the North Solihull Partnership, one of our three unique council partnerships," Chief Executive of Sigma, Graham Barnet, said.

"The forward sale of the North Arran Way development represents further momentum and triggers the payment of fees to Sigma. This development is part of our wider work with Solihull Metropolitan Borough Council and our other partners in a major programme to renew the North Solihull area over the next fifteen years or so."

The group also announced the appointment of Chief Operating Officer Graeme Hogg.

Hogg, currently Partnership Director, will take on the newly created role to support the Chief Executive.

He has been with the Sigma since 2011 when the group acquired his company Inpartnership Limited, renamed Sigma Inpartnership.

Hogg co-founded the company with Duncan Sutherland who has been appointed Regeneration Director.

It comes after Sutherland was recently named Non-executive Director of High Speed Two (HS2) Ltd which is delivering the new high speed railway network between London and the North of England.

"I would like to congratulate Graeme Hogg on his new role as Chief Operating Officer, which is a newly created board position," Barnet said.

"It reflects the progress we have been making in opening up the growth opportunities available to us and the potential ahead."

RD

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