Sigma Capital Group plc - Trading update

01 Feb 2010

Sigma, the specialist asset management and advisory group, is pleased to provide the following update on trading for the 12 months to 31 December 2009, in advance of publishing its preliminary results in April 2010.

Results for the full year are expected to be profit before tax in excess of £0.9m (2008: loss of £0.5m) and revenue from services of approximately £2.4m (2008: £4.7m). The Group's balance sheet remains very robust. Net assets per share attributable to equity shareholders at 31 December 2009 are expected to be approximately 19.0p per share (31 December 2008: 15.9p).  Net cash at 31 December 2009 stood at approximately £3.6m (31 December 2008: £3.8m). In addition, the Board is pleased to note that when Sigma's preliminary results are published, it will be recommending the payment of a maiden dividend.

Sigma's results principally reflect three material items:

  • The realised gain, of GBP3.6m, on the sale of Sigma's investmentin its university IP commercialisation subsidiary, Frontier IP Limited. The subsidiary was reversed into a PLUS-quoted investment company and re-listed as Frontier IP Group Plc on the PLUS Market on 13May2009;
  • A conservative approach to the value of Sigma's investment in SI Limited Partnership No.7. The investment has been written down to nil and the remaining debt due from the partnership written off resulting in a total charge of £0.9m in the second half of the year and GBP2.7m for the whole year;and
  • A decrease of 25% in overheads (excluding the bad debt write off referred to above).

To summarise the trading performance of the Group's three subsidiaries: the Group's venture capital fund management activities performed well , trading profitably, and we see the potential for significant value in Sigma's venture capital portfolio.  Results from Sigma's property investment subsidiary show a small loss for the year at an operating level.  This is before the impact of the one-off charges mentioned above. The university commercialisation business, Frontier IP Group Plc, turned in a good performance during its first six months as an independent business although it generated a small loss in that period.

The new financial year has started encouragingly, with significant work in progress across all Sigma's subsidiaries and the Board continues to view the Group's prospects positively.
Enquiries:

Sigma Capital Group plc Graham Barnet, CEO T: 0131 220 9444
www.sigmacapital.co.uk
Biddicks               Katie Tzouliadis/ Sophie Lane  T: 020 7448 1000
Arbuthnot Securities    Tom Griffiths/ Neil Kirton      T: 020 7012 2000