Interim Results for the six months to 31 May 2011
05 July 2011
ST. MODWEN PROPERTIES PLC
(“St. Modwen” or the “Company”)
Half Year Results for the six months to 31 May 2011
STRONG FIRST HALF PERFORMANCE DRIVEN BY ACTIVE MANAGEMENT INITIATIVES
St. Modwen Properties plc (LSE: SMP), the UK’s leading regeneration specialist, announces half year results for the six months to 31 May 2011.
• 40% increase in profit before tax to £37.4 million (H1 2010: £26.7 million).
• 6% increase in NAV per share in first six months to 226p (Nov 2010: 213p).
• Property valuations increased by £25 million, of which 96% or £24 million were achieved through active management. This represents an increase of 59% over the £15.1 million of valuation gains achieved in H1 2010.
• 11% increase in development profits to £11.2 million (H1 2010: £10.1 million).
• 2% increase in net rental income to £17.8 million (H1 2010: £17.4 million).
• 10% increase in interim dividend to 1.1p per share.
• Contracts signed following the period end to develop a 135,000 sq ft office and production facility for Siemens in Lincoln. Further to the commercial developments already signed in the first half of the year this points to an increasingly secure development programme for 2011/2012.
• Positive outlook for residential land with strong progress on the Persimmon joint venture, with construction at Wolverhampton now underway and detailed planning secured at Glan Llyn and Sunderland. Four further developments with Persimmon are expected to commence on site in the next 12 months.
• Significant planning permissions secured at Longbridge, Birmingham; RAF Uxbridge and RAF Mill Hill; and in South Wales at Coed Darcy and for Swansea University’s second campus.
• Active portfolio management successfully generating value in flat market conditions.
• Vacancy levels maintained at 12%.
Bill Oliver, chief executive of St. Modwen, commented:
“We have achieved very strong results for the first half of the year in markets that continue to present challenges. Even in this market, our skilled regional teams have been able to drive income and valuation gains through active management and progressing sites through the planning process in London and across the UK. We are also seeing an increase in demand for developable residential land and we continue to progress our residential development programme both in-house and through joint ventures.
“Our long term focus, track record of delivery, strong asset management skills and ability to secure new projects, either on our own behalf or in joint venture, give us continued confidence in both the results for the current financial year and our future growth.”
St. Modwen Properties PLC Tel: 0121 222 9400
Bill Oliver, Chief Executive
Michael Dunn, Group Finance Director
Charlotte McCarthy, PR Manager
Financial Dynamics Tel: 020 7831 3113
A presentation for analysts and investors will be held at 9.30am today at the offices of Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB. If you would like to attend, please contact Will Henderson at Financial Dynamics (firstname.lastname@example.org, 020 7831 3113).
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