St Modwen chief announces his intention to retire
THE head of West Midlands regeneration specialist St. Modwen, Bill Oliver, has announced he is to relinquish his post as the group’s chief executive.
The announcement overshadowed the release of the Quinton-based group’s full year results today, which showed a 91% increase in pre-tax profit to £258.4m (2014: £135.4m).
Oliver will retire officially on November 30, 2016, at the end of the company’s financial year, by which time he will have served 13 years as chief executive and 17 on the group’s board.
St. Modwen said the announcement was being made now in order to ensure that the board had the necessary time to conduct a search for his successor.
Commenting on Oliver’s retirement, Bill Shannon, chairman of St. Modwen, said: “Bill has made a significant contribution to both the property industry and St. Modwen during his long and successful career as both Finance Director and Chief Executive.
“Under his leadership the company has delivered excellent returns for shareholders and has furthered its reputation as the UK’s leading regeneration specialist. He has guided the business through significant changes and challenges and has earned the respect of our shareholders, partners, colleagues and the board. Bill will leave St. Modwen with our very best wishes.
“Bill will continue to play a full and active role in the business, supported by his experienced senior management team and will remain a member of the board and continue as chief executive until November.”
Oliver said: “It has been a great privilege to have been part of St. Modwen’s success over the past 17 years. 2016 marks the 30th anniversary of the company’s listed status and the business remains in a strong position with a portfolio and team in place to deliver excellent future growth.
“I would like to thank all of St. Modwen’s employees, past and present for their hard work and dedication and for helping to make my time at the company such a rewarding and enjoyable experience. I have been surrounded by an extremely talented senior management team, a number of whom have been with me throughout my career at St. Modwen, and I have every confidence that they will continue to drive the business forward.”
The full year’s results show shareholders net asset value (NAV) grew 27% per share to 413.5p (2014: 325.1p), and estimated profit per share was up 30% to 446p (2014: 342p). Earnings per share grew 82% to 97.9p (2014: 53.8p).
Property profits rose 31% to £67.4m (2014: £51.3m) and the total dividend for the year increased by 25% to 5.75p per share (2014: 4.6p per share).
The strong performance was helped by the completion of several significant milestones.
New Covent Garden Market achieved unconditional status during H1 and is now reflected in the balance sheet. Interim flower market works are now underway, marking a significant step towards securing vacant possession of the 10-acre Nine Elms Square site
At Longbridge, phase two of the town centre was completed with the opening of Marks & Spencer’s new 150,000 sq ft flagship store.
The Bay Campus, Swansea University opened in September 2015, welcoming 917 students. Phase two opened last month with Phase three set to follow in 2017.
In addition, it said the commercial property development pipeline continued to deliver a strong flow of profits, while there was continued growth in residential development profits.
Overall, the group said it remained well positioned for continued growth, supported by a healthier investor market during 2016 for the disposal of mature assets.
