EDINBURGH regeneration specialist Sigma Capital has reassured investors that its 2016 results will be “broadly in line with market expectations” after warning in September that it was “materially rebasing” its expectations.
In 2015 the firm saw turnover increase by 74 per cent to £6.7 million and pre-tax profits soar by 898 per cent to £2.1m.
However, while reporting first-half rises in turnover and profits for 2016 chairman David Sigsworth said that the business had “experienced certain delays in our managed and self-funded PRS [private rented sector] activities” meaning it was “materially rebasing management expectations in the near term”.
He added that an agreement with the Homes and Communities Agency would allow it to “materially enhance” its profitability by expanding its activity in the self-funded PRS space.
Yesterday the firm said that it “continues to make encouraging progress” and that its results for the full year, which will be announced in April, would be in line with market expectations.
“This has been achieved without the benefit of the launch of an additional phase of managed PRS before the year-end and reflects better than expected performance from both Sigma’s own self-funded activities and its regeneration projects with local authorities,” it said in a trading update.
It added that “prospects for the new financial year remain positive”.
Sigma’s shares, which have been on an upward trajectory since falling to 68p at the beginning of October, closed 0.6 per cent up at 84.5p.
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