Sigma to pay maiden divi after crossing profits Frontier

SIGMA Capital, the technology and property investor, expects to start paying dividends for the first time after returning to the black last year.

In a trading update the Edinburgh-based group said it would report pre-tax profits of more than 900,000 for the year ending 31 December, compared with a loss of 500,000 the previous year.

The 3.6 million gain on the sale of its investment in Frontier IP, the intellectual property commercialisation subsidiary, and reduced overheads contributed to the turnaround.

"The new financial year has started encouragingly, with significant work in progress across all Sigma's subsidiaries," said

Graham Barnet, Sigma's chief executive.

AIM-listed Sigma said its venture capital fund management business was trading profitably and that it saw potential for "significant value" from its investment portfolio, which includes Scottish wave power developers Pelamis and Aquamarine Power.

Frontier IP, listed on the Plus market last year, had turned in a good performance during its first six months as an independent business although generated a small loss in the period, the company said.

Results from Sigma's property investment subsidiary will also show a small loss for the year at an operating level and the company has taken a 2.7m charge over one of its funds where there have been difficulties with a development in Aberdeen.

Net assets per share at the year-end are expected to be about 19p, up from 15.9p, with net cash about 3.6m, down from 3.8m.