Regeneration specialist St Modwen unveiled a healthy development pipeline this morning despite tough market conditions as the company boasted a 34 per cent increase in pre tax profits, now up to £50.4 million.
Reporting its final resuls for the year ended 31 December 2011, the company, which has strong partnerships with Persimmon, Vinci and Salhia, said it was now well placed to deliver growth this year and beyond.
It plans to more than double the number of sites currently being developed in joint venture with Persimmon, taking the total vehicle to around 2,000 plots.
It has submitted planning applications for 660 homes and employment space on 280 acres of land for mixed use development at Branston, Burton on Trent.
In Pye Green, Hednesford, Cannock a planning application has been submitted for up to 700 homes on a 142 acre site to the north of the town centre.
Proposals are currently being worked up to adapt part of the 100 acre Melton Park in Hull for residential development.
The company’s future commercial development opportunities include:
· Swansea University - creation of a new campus.
· Elephant & Castle, Southwark, London - Regeneration of the existing shopping centre with the opportunity for up to 1,000 residential units above.
· Great Homer Street, Liverpool - 80,000 sq. ft. foodstore plus 50,000 sq. ft. of further retail.
St Modwen chief executive Bill Oliver said the company had enjoyed a successful year despite the market conditions, “significantly growing profits and completing transactions across the portfolio”.
He said the foundations were in place for a strong performance this year.
“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.”
· Profit before tax up 34% to £50.4m (2010: £37.5m).
· Shareholders’ NAV up 9% to 232p per share (2010: 213p per share), and EPRA NAV up 9% to 250p per share (2010: 229p per share).
· Realised property profits up 9% to £23.8m (2010: £21.9m)
· Net rents up 5% to £35.5m. (2010: £33.7m).
· Valuation gains of £34m (2010: £23m) in a flat market, of which £33m (2010: £18m) of these gains were driven by active management and planning gain.
· Gearing at year end of 73% (2010: 72%). All corporate on-balance sheet facilities extended until at least 2014.
· Terms agreed for new five year debt facilities on KPI joint venture.
· Dividends for the year increased 10% to 3.3p per share.