Sigma Capital to beat market expectations

Private rented sector and regeneration specialist Sigma Capital expects to report pre-tax profit for the year to the end of December significantly ahead of current market expectations thanks to a solid second half.

The group said the second half of the financial year has progressed very well, with the rate of delivery of private rented sector (PRS) units ahead of management's initial targets.

As a result, it now expects to deliver pre-tax profit in excess of £2m.

The company said it remains very well positioned for 2016 with work in progress ahead of plan as recent announcements have indicated.

Its second phase of PRS delivery with Gatehouse Bank for around 900 new rental homes is now underway across Greater Manchester and Liverpool, and its target for 2016 is to launch similar-sized phases in two further regions in the Midlands and the South.

This will deliver a run rate of over 3,000 units by the end of 2016, “firmly positioning the company as one of the largest housing delivery platforms in the UK and the largest in PRS”.

In addition, it expects to begin construction with its second house building partner, Keepmoat, in the first half of this year.

This will add additional capacity alongside its long-term partner, Countryside Properties, as well as access to further land opportunities in addition to its current pipeline.

Sigma is due to announce full year results in mid-April when a further update on trading will be provided.