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4th July 2017

HALF YEAR RESULTS FOR THE SIX MONTHS TO 31ST MAY 2017

BUSINESS SHOWS CONTINUED RESILIENCE 

Mark Allan, Chief Executive of St. Modwen, commented: 

"The business continued its resilient performance across the first six months of the year, despite an uncertain market environment, with all parts of the Group contributing positively. We also concluded our strategy and portfolio review, which has confirmed the significant potential present in our business and pipeline and we are now focused on realising these opportunities in the months and years ahead."

Financial highlights

Non-statutory measures(*)

May

2017

Prior period

 

Statutory measures

May 2017

Prior period

 

EPRA NAV per share (pence)

Total accounting return (%)

Profit before all tax (£m)

Trading profit (£m)

468.4

2.6

29.3

26.4

460.5

1.8

30.0

34.4

 

NAV per share (pence)

Interim dividend per share (pence)

Profit before tax (£m)

Earnings per share (pence)

439.6

2.02

31.6

12.1

431.0

1.94

35.5

11.8

 

 

  • EPRA NAV per share up 1.7% to 468.4 pence (Nov 2016: 460.5 pence) and NAV per share up 2.0% to 439.6 pence from 431.0 pence. 
  • Total accounting return for the six months of 2.6% (2016: 1.8%).
  • Profit before all tax of £29.3m (2016: £30.0m), reflecting a more stable valuation environment.
  • Earnings per share of 12.1 pence (2016: 11.8 pence).
  • Interim dividend increased by 4.1% to 2.02 pence per share (2016: 1.94 pence per share).

Operational highlights

  • Resilient commercial performance with approximately 400,000 sq ft of commercial space delivered in the first half.
  • Strong residential performance with operating profits of £13.4m (2016: £12.9m) supported by excellent progress from St. Modwen Homes which achieved 55% growth in profits, offsetting the planned decline in the Persimmon JV as it winds down.
  • Good progress with major projects:
    • Nine Elms Square, New Covent Garden Market, London – in June, exchanged contracts for the sale of our interest in the 10-acre Nine Elms Square site in London to Wanda Commercial Properties (Hong Kong) Co Ltd. 
    • Bay Campus, Swansea University – progressing with the sale of our student accommodation assets to take advantage of the strong investment demand for student housing. 

Strategy and portfolio review

  • Review of strategy and portfolio now complete and highlighting significant potential within business and portfolio.
  • Upon completion, sale of Nine Elms Square releases significant capital to pursue strategic opportunities.

Enquiries:

St. Modwen Properties PLC

Mark Allan, Chief Executive

Tel: 0121 222 9400

Rob Hudson, Group Finance Director

Charlotte McCarthy, Head of Corporate Communications

FTI Consulting

Dido Laurimore

Tel: 020 3727 1000

Tom Gough

Ellie Sweeney

stmodwen@fticonsulting.com

A presentation for analysts and investors will be held at 9.30am today at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD.

If you would like to attend please contact Ellie Sweeney at FTI on +44 (0)20 3727 1622 or stmodwen@fticonsulting.com. A live webcast of the presentation will be available at www.stmodwen.co.uk and presentation slides will also be available to download.

 Alternatively, details for the live dial-in facility are as follows:

Participants (UK):

Tel: +44(0)20 3059 8125

Passcode:

St Modwen

 

This announcement contains inside information as set out in Article 17 of the Market Abuse Regulation (MAR).

(*) Reconciliations between all the statutory and non-statutory measures and the explanations as to why the non-statutory measures give valuable further insight into the Group's performance are given in note 2 to the condensed Group financial statements. In particular, profit before all tax is used because it reflects the way the Group is run on a proportionally consolidated basis, and because it also removes the taxation effects on equity accounted entities from the statutory profit before tax figure. Prior period measures are for the equivalent period in the prior year other than NAV per share and EPRA NAV per share, which are as at 30th November 2016.

This announcement contains certain forward looking statements which, by their nature, involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward looking statements. Any forward looking statements made by or on behalf of the Company are made in good faith based on the information available at the time the statement is made; no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. The Company does not undertake to update forward looking statements to reflect any changes in its expectations with regard thereto

 

You can read the full results announcement here


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