Positive performance from St Modwen as campus deal announced

DEVELOPER St Modwen has delivered a strong set of results with a 12% increase in net trading profit a highlight.

The company also announced this morning that it has agreed terms with Swansea University to deliver the first phase of its £150m science and innovation campus.

Announcing its annual results for the year ending November 30, St Modwen, which has an office covering Yorkshire, declared a 12% increase in net trading profit to £25.5m (2011: £22.8m). Profit before tax was £52.8m (2011: £51.7m).

The firm’s gearing at year end was 71% (2011: 73%) and it said the completion of a successful £80m retail bond issue has provided it with substantial headroom in facilities.

St Modwen saw valuation gains of £48m (2011: £33m) generated through active asset management and planning gains, offsetting a £20m market-driven valuation loss (2011: £1m profit).

The firm says it sees continued positive outlook for residential land with London residential transactions driving valuation gains.

Chief executive Bill Oliver said: “This has been another successful year during which we have achieved some significant milestones across our portfolio and, in particular, on our major development projects.

“These achievements underline our growing presence in the London and the South East market while also proving that there are still opportunities in the regions for well-placed and well-priced product.

“We cannot ignore the current upsurge in investor appetite for development activity in London and the South East and the prospects arising across the UK from our residential portfolio. We will therefore focus our attention throughout the coming year on these specific areas in order to drive optimal returns, as well as advancing our larger schemes, including of course the New Covent Garden Market and Swansea University developments.”

Swansea University’s planned science and innovation campus will be located on St Modwen’s 65 acre Transit site, one of the holdings within a 2,500 acre portfolio acquired from BP in 2009.