Half Year Results for the six months to 31 May 2012

ST. MODWEN DELIVERS STRONG PROFITS AND GROWTH THROUGH INCREASED RESIDENTIAL FOCUS AND DEVELOPMENT-LED STRATEGY

St. Modwen Properties plc (LSE: SMP), the UK’s leading regeneration specialist, announces its half year results for the six months to 31 May 2012.

Financial Highlights:

• 5% increase in NAV per share in first six months to 244p (Nov 2011: 232p) and EPRA NAV up 6% to 264p per share (Nov 2011: 250p).
• Profit before all tax £34.9 million (H1 2011: £37.9 million).
• Added value gains of £35 million (H1 2011: £24 million) have offset market-driven valuation reductions of £14 million (H1 2011: £1 million increase) to provide net gains of £21 million (H1 2011: £25 million).
• 48% increase in realised property profits to £16.6 million (H1 2011: £11.2 million).
• 3% increase in net rental income to £18.3 million (H1 2011: £17.8 million).
• Gearing of 74% (Nov 2011: 73%).
• 10% increase in interim dividend to 1.21p per share.
  

Operational Highlights:

• London residential transactions generating significant valuation gains (and cash flow).
• Active portfolio management successfully generating value in weak market conditions.
• Development programme for 2012 progressing well, with strong performance achieved in 2011 expected to be surpassed.
• Positive outlook for residential land activity, with good housing sales already achieved and strong on-going demand at an increased number of sales outlets.
• Substantial future pipeline in place, with significant opportunities at:
  - New Covent Garden Market
  - Elephant & Castle
  - Swansea University
  - Longbridge
  

Bill Oliver, Chief Executive of St. Modwen, commented:

“Our year has started very well, despite the on-going challenges posed by the wider economy, enabling us to deliver a strong set of first half results. Our strategy of an increasing residential focus, with more emphasis on London and the South East, has enabled us to continue to grow the Net Asset Value of the Company. We continue to complete transactions across the portfolio and this, coupled with our ability to add value to our assets through the planning process and our active management of our income producing portfolio, has driven our first half results. We have secured significant opportunities in London and we are confident that this progress, together with strong momentum on our housebuilding sites, will deliver additional property profits to boost our results for 2012 and future years.”

Enquiries:
St. Modwen Properties PLC
Tel: 0121 222 9400
Bill Oliver, Chief Executive
Michael Dunn, Group Finance Director
Charlotte McCarthy, Corporate PR Manager

FTI Consulting
Tel: 020 7831 3113
Stephanie Highett Dido Laurimore
Olivia Goodall

A presentation for analysts and investors will be held at 9.30am today at the offices of FTI Consulting, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB. If you would like to attend, please contact Faye Walters at FTI Consulting (stmodwen@fticonsulting.com, 020 7831 3113).

The meeting can also be accessed via a conference call dial-in facility, using the following details:
Dial-in: +44(0)20 3450 9987
Confirmation code: 5066524

TO VIEW THE FULL PRESS RELEASE - CLICK HERE

TO VIEW THE INVESTOR PRESENTATION - CLICK HERE

TO VIEW THE HALF YEAR REPORT ONLINE VERSION - CLICK HERE

TO VIEW THE HALF YEAR REPORT AS A PDF - CLICK HERE