£50m profit for St Modwen despite market conditions
BIRMINGHAM developer St Modwen has seen a marked improvement in its fortunes over the last 12 months, reporting an increase in profits of 34 per cent.
The developer of the Longbridge regeneration scheme has recorded profits before tax of £50.4m compared to £37.5m in 2010.
The firm says it has a secure development programme for 2012 with commercial developments already on site likely to deliver in excess of £15m profit in 2012.
It also says it has a substantial future pipeline in place, with significant opportunities emerging at schemes in London and Wales as well as Project MoDEL, a project run for the Ministry of Defence in a joint venture with construction firm Vinci.
Bill Oliver, chief executive of St.Modwen, said: “We have had a very successful year despite the challenges posed by the market conditions, significantly growing profits and completing transactions across the portfolio, and we have the foundations in place to deliver very good results in 2012.
“Our commercial developments in progress together with our active housebuilding sites will deliver property profits to underpin our results for 2012 and beyond. We can also see clear opportunities to add value to our assets through the planning process and our active management of our income producing portfolio is producing a resilient income stream.
“Although the wider economic environment remains unpredictable and there may still be further challenges for the sector, we are confident that our asset portfolio and development pipeline will provide us with many opportunities to add significant value for our shareholders.”
