Acquisition of Inpartnership expected to lift second half performance
In a market update posted today, Sigma said it expects revenue from services to come in at around £2.4million, up 33 per cent on the £1.8 million reported a year earlier.
Trading profits are expected to break even for the full year against a loss of £0.6 million a year ago.
Losses before exceptional items and tax are expected to be less than half the £1 million loss reported for 2010.
However, Sigma is likely to make an exceptional item provision of around £1 million against the falling value of its holding in subsidiary Frontier IP Group Plc, which has lost more than half of its value since listing in January 2011.
Last April, Sigma reported losses of £3.6 million overall for the 2010 year, though two exceptional items totalling £2.62 million made up the rump of the losses.
Losses on the property portfolio in 2010 were put at £420,000 for the year against a loss of £2.45 million for 2009.
Stripping out exceptional items, the operating loss before tax and exceptional items was £980,000 last year against a profit of £890,000 in 2009.
AIM-listed Sigma has undergone an extensive restructuring in the past year to focus primarily on regeneration related activities.
The Edinburgh-based group has only one contract remaining from its historic property management activities.
Sigma acquired Inpartnership Ltd last August from Scottish entrepreneur Sir Tom Hunter's West Coast Capital investment firm in a £347,000 deal.
West Coast Capital had acquired the 50 per cent stake in Inpartnership in 2007 in a multi-million pound deal backed by Bank of Scotland.
Inpartnership, which has offices in Birmingham and Manchester, specialises in creating long-term asset-backed partnerships with the public sector.
The new Sigma Inpartnership Ltd subsidiary, which has unique long term contracted relationships with three major UK councils, made good progress in the second half of the year, the group said.
Agreements in place range in length from 10 to 20-years, with Liverpool, Salford and Solihull Metropolitan Borough council.
The total development value of the opportunities held within the three partnerships is estimated at more than £2 billion.
Sigma also reports four of its six venture capital management funds are in the realisation phase and are set to generate strong cash flows.
The company said net cash at December 31, 2011 stood at £1.2 million, down from £1.8 million in 2010.