St Modwen sees profits increase by 56% to £82m
DEVELOPER St Modwen has recorded a strong set of results as its dual strategy of developing both commercial and residential space pays dividends.
In its annual results for the year ended November 30, the Birmingham firm – perhaps best known for large-scale regeneration schemes such as Longbridge – reported profit before tax had increased by 56% to £82.2m (2012: £52.8m).
St Modwen reports that amongst its operational highlights during the period was the sale of Elephant & Castle Shopping Centre in London for £80m and letting 150,000 sq ft of space at its Longbridge scheme in Birmingham to Marks & Spencer.
A successful equity placing in February 2013 raised gross proceeds of £49m.
The firm says it is on track with other major schemes including Bay Campus at Swansea University and New Covent Garden Market in London where planning approval is anticipated next year.
Chief executive Bill Oliver said: “The recovery has gathered momentum in 2013 and, against this improving backdrop, we achieved a number of important milestones across our business. This has been illustrated by another strong set of results.
“The improvement in the housing market is well documented, driven by strong demand from customers for our homes, and from housebuilders for our development-ready land.
“The recovery in the nationwide commercial property market also looks to be gathering momentum and we are optimistic for 2014.
“We will continue to create value from our portfolio of assets as we look to proactively manage those opportunities across the UK which have the ability to deliver attractive and consistent returns for shareholders. We look forward to another busy and successful year.”
