29th Apr 2019 10:41
LONDON (Alliance News) - Sigma Capital Group PLC on Monday reported a tripling in annual profit growth, while it also has set up a new fund in Scotland.
Sigma has started the Sigma Scottish Private Rented Sector Fund, with the Scottish government providing GBP30 million of the GBP43 million initial resources.
The new fund is already looking at sites in Scotland, and Sigma said the fund will give it the chance to grow by moving into a new geography.
Sigma Chief Executive Graham Barnet said: "We are delighted to be launching the Sigma Scottish PRS Fund with the support of the Scottish government's Building Scotland Fund. Our approach to housing delivery has been working extremely well in England, delivering thousands of new houses for the private rental market.
"We see significant demand for our high-quality, professionally-managed homes in Scotland and look forward to using this new fund to assist in addressing Scotland's housing needs."
Turning to 2018 financials, pretax profit tripled to GBP12.2 million, as revenue multiplied to GBP12.5 million from GBP4.4 million.
The results benefited from the first full contribution from PRS REIT PLC, which Sigma set up in May 2017.
Sigma has also declared its first dividend, and will pay 2.0 pence per share to shareholders.
"The transformational effect of launching the PRS REIT is now evident. All key financial measures are significantly ahead year-on-year, and Sigma's growth prospects remain very strong," said Barnet.
In its own statement, PRS REIT declared a 1.0p per share dividend for the third quarter ended March, and is targetting a 5p payout for its year ending June.
Sigma shares were 2.4% lower Monday at 104.00p each, though had reached 109.00p earlier on, with PRS down 1.0% at 99.50p.
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