News Archive

AGM Statement and Trading Update

At the Company’s Annual General Meeting to be held later today in London, Sir Stanley Clarke, Chairman of St. Modwen Properties PLC, will make the following remarks:

Trading Update

“In my statement in the Annual Report, I said that the current financial year had started extremely well. I am delighted to confirm that since I made that statement in February, we have continued to record excellent progress.

At that time, we had secured development profit for 2002 on sales already completed or exchanged of over £10m. That figure now stands at over £15m of which more than £9m has actually been completed.

Development programme

In addition, we have made good progress in bringing forward further schemes lifting the value of our unsold committed construction development programme to over £50m.

This includes two substantial pre-let distribution warehouses, the construction of which will be completed this year.

* At our Shepcote, Sheffield development, we have contracted with Dixons for a 95,000 sq.ft building

* At Trentham Lakes, Stoke-on-Trent, Pets at Home are taking a 150,000 sq.ft building.

In addition:

* In Worcester, we have launched the £15m 82,000 sq.ft first phase of the Shrub Hill Retail Park, with pre-lettings to Wickes, Staples and three other retailers. This scheme based in part on one of our long-term industrial estates has taken many years to bring to fruition overcoming a number of major planning, land assembly, site reclamation and infrastructure issues.

* We have continued to develop Castle Walk, our £20m town centre retail scheme in Newcastle under Lyme. The first phase, now sold for £7 million, is trading well and construction of the 65,000 sq.ft second phase is well advanced. We have already secured important initial lettings for this phase with good further interest.

* In February, we also cleared the last hurdles for our £6m redevelopment of the Daniel Owen Centre in Mold. The new 42,500 sq.ft phase, largely pre-let, is under construction and will be completed later in the year.

* On the speculative front, having completed the acquisition of the local authorityÕs innovation centre at Cranfield Technology Park, we are building a 23,000 sq.ft extension to the centre and a 20,000 sq.ft repeat building of our highly successful Trent House development. On completion, we will have 78,000 sq.ft of short to medium-term flexible office space which will anchor the Cranfield Technology Park which we are developing in partnership with Cranfield University.

Acquisitions

We have continued to be active on the acquisition front investing over £16m in long-term projects. These include an interesting 3.5-acre opportunity in Borehamwood. We have also acquired three properties from Invensys in Doncaster, Guisely near Leeds and Huddersfield totalling 48-acres with one million sq.ft of existing space. All four properties have existing short-term income and have undoubted refurbishment or redevelopment prospects. Finally, we have concluded our successful long-term venture with the Ministry of Defence at Hilton in Derbyshire by buying out the final 75 acres of industrial land. Again this acquisition has existing income covering the immediate funding costs and provides longer term potential.

Conclusion

I am therefore increasingly confident that this year will be another record one for your company. It is also pleasing to note that the 2003 development programme is already taking shape.”