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St Modwen predicts growth despite doubling loss to £101.7m

Property company St. Modwen has predicted an increase in development opportunities and a return to growth in profits next year despite nearly doubling its loss in 2009.

The regeneration specialist recorded a loss of £101.7 million for year ending 30 November 2009, compared to £50.7m in 2008.

Trading profit, which excludes non-cash items such as revaluations and mark-to-market adjustments, fell 57 per cent to £8.4m from £19.5m in 2008.

However the company said it had a positive operational cashflow, including £101m raised from property disposals, and had increased its “Hopper” – its bank of developable land - by 12 per cent to 5,600 acres.

Chairman Anthony Glossop said: “Property market prospects still remain uncertain.  The economy may be slowly emerging from recession, but business confidence remains fragile, with continued pressure on rents and occupancy levels.

“However, St Modwen is well prepared for such conditions: our financial position is sound; our business model will increasingly create value; and we are in a good position to seize attractive opportunities to add further to the Hopper.

“I am confident that 2010 will see the company returning to growth in profits and net asset value.”

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