Strong annual figures for St Modwen

DEVELOPER St Modwen saw revenues double last year.

Announcing its annual results for the year to November 30, it said revenues had jumped to £219.1m but pre-tax profits dipped 6% to £47.4m.

The firm’s gearing at year-end was 71% (2011: 73%) and it said the completion of a successful £80m retail bond issue has provided it with substantial headroom in facilities.

St Modwen saw valuation gains of £48m (2011: £33m) generated through active asset management and planning gains, offsetting a £20m market-driven valuation loss (2011: £1m profit).

The firm says it sees continued positive outlook for residential land with London residential transactions driving valuation gains.

In the North West the firm is working with Persimmon on a supermarket and 282 homes at the former Vulcan Works in Newton-le-Willows, and the Great Homer Street regeneration in Liverpool.

Parts of this scheme, which will involve an 80,000 sq ft supermarket, 480 homes and 80,000 sq ft of industrial space, are still going through a compulsory purchase order. The group also owns Wythenshawe Shopping Centre, Manchester.

St Modwen’s northern director Stephen Prosser said: “We have continued to make strong progress on commercial development in the North West. Plans for the regeneration scheme of Great Homer Street in Liverpool moved an important step forward as the compulsory purchase order (CPO) for land in the area was confirmed by the government, while a major regeneration of Skelmersdale town centre was granted planning consent. Both projects present significant opportunities to create future revenue streams in the region.

He added: “Our portfolio in the region is underpinned by successes in our income producing properties. Stonebridge Park, Knowlsey, has pre-let and pre-sold all of the 50,000 sq ft space available during the first phase of development despite challenging conditions in the region. Our flexible and accommodating approach to lettings has enabled us to secure new leases totalling over 250,000 sq ft across our North West sites.”