St Modwen forecasts higher profits

DEVELOPER St Modwen has revealed it is benefiting from improving conditions in the regional property market.
In a trading update for the year ended November 30 it said full-year pre-tax profits are likely to be at the top end of expectations.

The group said initial indications suggest the results will reflect an uplift in property valuations, arising from both market driven movements in an improving regional market and its own “value add development and asset management activities”.

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 £150m Great Homer Street regeneration scheme in Liverpool. The group also has a £20m town centre plan for Skelmersdale and owns Wythenshawe Shopping Centre, Manchester.

Chief executive Bill Oliver said: “Our commitment to the UK regions is paying off, with good returns already being achieved as we continue to grow our active development portfolio with new commercial and residential opportunities, underpinned by the upturn in the regional property market.
“This, combined with our successes in the residential market and in London and the South East, leads us to anticipate record profits for St Modwen for the 2014 financial year.”