Strategy

Our strategy is intended to improve our returns on capital by concentrating our activities on sectors that have long-term structural growth characteristics while also enhancing our flexibility through tightly controlling leverage and reducing the proportion of our portfolio invested in land.

This is captured through our three key strategic objectives:

  • Build a high quality industrial and logistics business
  • Grow our residential and housebuilding business
  • Leverage our regeneration reputation

Build a high quality industrial and logistics business

  • >15m sq ft of industrial and logistics space to deliver in the long term
  • Retain the majority of our industrial/logistics pipeline

2018 progress: full year ended 30th November 2018

  • Increased committed industrial/logistics pipeline from 1.0m sq ft to 1.5m sq ft since the start of 2018
  • Obtained consent for 2.1m sq ft of new developments, taking total consented future pipeline to 8.1m sq ft
  • Prepared our pipeline for further growth; over 15m sq ft development potential across key strategic sites with ERV of c £60m deliverable over the long term

Grow our residential and housebuilding business

  • Own land bank comprises c. 18,400 plots of which c. 85% have planning
  • Visibility to grow St. Modwen Homes volumes by up to 25% per annum

2018 progress: full year ended 30th November 2018

  • Delivered 22% growth in St. Modwen Homes’ volumes with 848 units sold in the first half (2017: 694 units)
  • Delivered 34.3% increase in operating profit to £31.3m reflecting low level of affordable completions during the previous period
  • Sold 49 acres of residential land to third party housebuilders for £53m (2017:£56m)
  • Similar volumes of residential land sales to third party housebuilders expected for 2019

Leverage our regeneration reputation

  • Deliver on our existing major regeneration projects
  • Unlock the next generation of regeneration schemes

2018 progress: full year ended 30th November 2018

  • Released £141m of capital out of first phases of development at Longbridge and Swansea to bring forward significant residual development opportunities
  • Preparing next phase of student housing and academic facilities at Swansea for delivery by 2021
  • Enhancing the Longbridge vision ahead of employment-led next phase