Positive first half for developer St Modwen

Developer St Modwen saw revenues for the first half of the year decline after a shift in direction last year.

Turnover dropped from £213.7m last year to £173.2m for the six months to May 31, it revealed today.

However, pre-tax profits improved from £25.9m a year ago to £28.1m.

Chief executive Mark Allan said: “We have had a positive first half of 2019 and our expectations for the full year remain unchanged.

“Following our significant portfolio repositioning last year through the sale of retail and other non-core assets, our focus has now shifted to growth, building on the substantial opportunities we have in our existing portfolio.

“This is reflected in a further increase in housebuilding volumes and industrial and logistics development activity, where the structural growth drivers remain positive despite the ongoing economic uncertainty.”

He added: “We continue to expect the delivery of this strategy to drive a meaningful improvement in return on capital and earnings over time.”

The group operates a North West regional headquarters in Warrington.

It said its i industrial & logistics division saw substantial growth, while homes continued growth in volumes and margins.

Projects around the region include proposals to regenerate the centre of Kirkby, in North Liverpool; in Bury the group has signed a development agreement with Bury Council to bring forward Chamberhall Business Park; it recently completed, and is looking to sell the refurbishment of the Glenn Buildings North and South and development in Crosby Village; while in Skelmersdale, St Modwen has moved forward with the first phase of development proposals to extend the town centre.

The interim dividend is up 16.1% to 3.6 pence reflecting solid growth in earnings.