Annual Report 2020 - St. Modwen

2020 Annual Report

Year in review

In the face of an incredibly challenging year – for our Company, the country and the world at large – organisations and communities have demonstrated resilience and kept their resolve in ways that few could have imagined.

At St. Modwen, we went into this crisis strongly placed financially and operationally, with a clear focus on the strong residential and logistics markets. But it was our purpose of ‘Changing Places. Creating Better Futures.’ that perhaps prepared us best for the challenges the pandemic would throw at our Company.

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Rooted in responsibility

2020 in numbers

£1.37bn

Total portfolio value

948

Total homes sold by St. Modwen Homes

1.2m sq ft

New logistics space delivered

£154m

Disposals and land sales

96%

Home Builders Federation (HBF) customer satisfaction rating

ARA 2020 / Chair’s statement

A purpose and strategy that are delivering for all

The last year has been extraordinary. Everyone, including St. Modwen, has faced unprecedented challenges as a result of the Covid-19 crisis.

Our business is built around our purpose – Changing Places. Creating Better Futures. Delivering on this purpose, we aim to create value for all our stakeholders – including the delivery of high-quality houses for families looking for a new home and the provision of business space to enable companies to grow.

Read the full statement

ARA 2020 / Chief Executive Officer’s review

Building resilience for the future

Following a positive start to 2020, the growing momentum in our business was interrupted at the end of March by the Covid-19 pandemic.

We paused nearly all activities on our sites, before restarting activity safely in May. Since then, we have rebuilt momentum and this is reflected in our operational results.

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Our strategic response

Based on our understanding of the market backdrop and agreed priorities, we have chosen to focus on the structurally supported sectors of logistics and housebuilding, underpinned by three strategic objectives and helping us to deliver on our purpose. These markets are served by our dedicated business units. Over time, we are targeting an improvement in our return on capital, growing our income and enhancing our operational flexibility through tightly managing financial leverage.

Build a high quality logistics business

We see long-term structural growth in the logistics sector, driven by the continued rise of e-commerce and increased supply chain needs. By growing our retained pipeline of developed assets, we deliver sustainable income for the Company.

St. Modwen Logistics progress

Grow our housebuilding business

The market for new-build housing in strong UK regions remains resilient, especially where good value meets quality products and these are delivered in good environments. Strong performances help to deliver profits and margin growth.

St. Modwen Homes progress

Leverage our regeneration reputation

Through a strong track record in land repositioning, this expertise and capability creates a real competitive advantage as we secure and prepare sites for logistics and residential development.

Strategic Land & Regeneration progress

Strategy in action

St. Modwen Park Tamworth

Euro Pool System – providers of reusable fresh produce packaging for leading grocers – occupies more than 49,000 sq ft of space at St. Modwen Park Tamworth, where it will wash close to 15 million foldable trays over the course of the next year.

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Acting and delivering responsibly

We believe that purpose and profit are inextricably linked. To sustain success, our financial performance must be delivered in tandem with a positive impact on society and the environment.

Net Carbon Reduction

Our ambition is to be operationally net zero by 2025 (this includes our Scope 1 emissions, Scope 2 and Scope 3 business travel, employee commuting, waste generation), and fully net zero carbon by 2040 (adds Scope 3 purchased goods & services, and tenant emissions).

View our progress

Biodiversity & Sustainable Environments

We want to boost biodiversity at our developments and deliver new schemes in an environmentally responsible way. Our ambition is to improve the biodiversity around our new development sites, achieving at least a 10% biodiversity net gain. By 2025, we aim to cut St. Modwen Homes site waste by a third and increase its recycling rate to 99%.

View our progress

Diversity & Inclusion

We recognise that everyone is an individual and we seek to embrace differences in the way we work and go about our lives. Our overarching ambition is to achieve the UK National Equality Standard by 2025.

View our progress

Education & Future Skills

We are committed to developing the next generation of skilled talent. Our overarching ambition is to invest 1% of the Company’s cash profits every year into education partnerships by 2025, making a positive impact on over 20,000 young people.

View our progress

Health & Wellbeing

Our ambition is to enhance the wellbeing of our people and make a positive impact on the health and wellbeing of the communities we serve.

View our progress

Responsible Operating Practices

Our supply chain relationships underpin our operations and business delivery. We can only fulfil our approach to responsible business obligations by working with our supply chain to embed responsible operating practices and deliver to our Supply Chain Charter requirements.

View our progress

Strategy in action

Branston Leas

In the Staffordshire village of Branston, we are halfway through a decade-long partnership with Staffordshire Wildlife Trust to create a living landscape along a major stretch of the River Trent.

View case study