Southern schemes lift St Modwen profits
DEVELOPER St Modwen has recorded strong half year results including an 11% increase in profit before tax.
The firm said the results, for the six months to May 31, demonstrated the strength and continued growth of its residential and London and South East portfolios.
It saw an 11% increase in pre-tax profits to £38.8m (H1 2012: £34.9m) on revenue of £63.8m, down from £81m.
In the North West St Modwen 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. The group also has a £20m town centre plan for Skelmersdale and owns Wythenshawe Shopping Centre, Manchester.
Construction of Swansea University’s Science and Innovation Campus started in May and work towards the submission of a planning application by the end of 2013 for the New Covent Garden Market redevelopment is making good progress.
St Modwen said there are also indications of of increased investment interest in secondary commercial property with the successful sale of £35m of mature commercial assets at or above book value during the first six months of the year.
Chief executive Bill Oliver said: “To be announcing a strong set of half year results and further growth in the net asset value of the company is positive and a testament to our clear strategy and robust business model.
“In addition, these results demonstrate the strength and continued growth of our residential and London and South East portfolios which underpin the market valuation gains that have been achieved in the period.
“All these factors, coupled with our active development pipeline and our ability to extract value from our properties through strong asset management, continue to provide an excellent platform from which we can deliver attractive returns and propose a 10% increase in our dividend.”
