Sigma, the PRS, residential development and urban regeneration specialist, is pleased to provide a trading update for the financial year ended 31 December 2017.
Following a landmark first half, the Company’s trading performance in the second half of the year has been strong across all its activities and the Board now expects results for the full year to be slightly ahead of management expectations, with profit before tax of c. £4.0m. In addition, the Board is upgrading its profit expectations for the new financial year.
The improved outlook for 2018 reflects excellent progress with The PRS REIT Plc (where Sigma’s subsidiary is Investment Adviser), the Company’s Self-funded PRS activities, as well as an increased pipeline of development opportunities and continuing buoyant demand for new family rental homes, Sigma’s main area of focus. Additional new development opportunities, worth in excess of £450m, have been identified over and above those previously reported, largely reflecting Sigma’s broadening relationships.
The Company is expanding considerably its construction resource and land access with Countryside Properties (“Countryside”), and plans are underway to significantly increase the number of completed units in 2018 over the prior year with this key partner. Sigma has also entered into a new Framework Agreement with Keepmoat Homes for increased housing delivery in South Yorkshire and East Midlands. This is in addition to the existing and increasing development activity with the Places & Communities Division of ENGIE (formerly part of the Keepmoat Group) in Sheffield and South Yorkshire.
Sigma’s relationship with the Homes and Communities Agency (“HCA”) remains highly productive, with both sides committed to the common goal of accelerating new housing delivery in England. In addition to the financial support in place, the relationship is also generating development opportunities for Sigma and its partners.