Asset management firm said pre-tax loss of year to December “no more than £1.3 million"
Asset management firm Sigma Capital is projecting it will post further pre-tax losses for the full-year to December 31, 2012.
Sigma said it intends to make a further provision of £0.5 million for the year against the carrying value of its holdings in the equity funds it manages.
Including this provision, Sigma said it expects to post a pre-tax loss of “no more than £1.3 million".
Sigma reported a £1.42 million pre-tax loss for the 2011 financial year, which followed a loss of £3.6 million reported for 2010.
The Edinburgh-based company said the second half of the financial year had been “in line with expectations” and it expects to report “a small trading profit” against a loss of £0.3 million reported for the first half.
The group said revenue from services is “expected to be at least” £2.3 million, down from £2.47 million the previous year, and including compensation payments to Sigma totalling £0.8 million.
Sigma secured a new £1.8 million, five-year management contract with Regenco Trading for its £1 billion Winchburgh development in West Lothian.
Those plans include 3,450 homes, town centre community facilities, retail and commercial space and transport connections.
AIM-listed Sigma has undergone an extensive restructuring in the past year to focus primarily on regeneration related activities.
The company said in a trading update today, “as anticipated”, its net cash position at the year end rose from £0.7 million at the end of the first half to £1 million at the year end and down on the £1.3 million reported at the 2011 year end.
The trading loss for the year is anticipated to be £0.3 million against a break-even position reported for 2011.
Sigma also said it had made “strong progress” in developing its core property division, and reports second-half revenue from this division was up 56 per cent on the first half and by 243 per cent on the previous year.
The group states: “The levels of activity in the property division continue to increase and the visibility of revenue streams is becoming stronger.
“We are continuing to develop opportunities in residential property development and urban regeneration, property asset management and property funding.
“With our three local authority partnerships and our involvement with the Winchburgh development, the scope for building revenues remains substantial.”
The bulk of the group's losses last year arose from Sigma's holding in Frontier IP Group Plc, which went on to lose more than half of its market value following its January 2011 listing.
In most recent annual results for the year to June 30, 2012, Frontier IP reported a pre-tax loss of £380,000 on total revenues of £223,000.
Sigma has also announced a board shake-up today which will see partnership director Graeme Hogg take up the newly created role of chief operating officer.
Duncan Sutherland has also been appointed to the board as regeneration director.