St Modwen stays ‘strong’ after stress-testing market

St Modwen has outlined its plans to call off its AGM as postpone its final 2019 dividend payment amid the continuing uncertainty around the coronavirus pandemic.

The developer says it’s financial position is “strong” and that it has stress-tested for a downturn in house sales and a “substantial” fall in retail rental income.

Meanwhile, the firm says it has £169m of cash available to it after making a positive start to 2020.

In a statement, the company said: “The duration and magnitude of this disruption and hence the impact on our financial results are impossible to predict at present, so our current focus is on making sure our employees and customers are safe, our balance sheet remains strong and our liquidity remains high.

“Our strategic re-positioning since mid-2017, which resulted in the disposal of the vast majority of our non-core retail assets and London residential land and a substantial reduction in our borrowings, means the business is robust. Moreover, the long-term drivers for our key sectors, industrial/logistics and residential, which make up nearly 90% of our assets, remain positive, so we are confident that St Modwen is well positioned for the future.”