Sigma has released a positive trading update for FY15: PBT will exceed £2.0m, ahead of our previous £1.5m forecast. Outperformance has been driven by expedited development of PRS homes for Gatehouse, positive performance of completed assets and strong fee income from non-PRS projects. We increase our FY15 PBT forecast to £2.1m; leaving our FY16 and FY17 forecasts unchanged. Development in new regions could drive Sigma’s run rate to 3,000 units by the end of 2016. We calculate a 150p/share intrinsic value for Sigma on full deployment of funding capacity.
