ANNUAL RESULTS FOR THE YEAR ENDED 30TH NOVEMBER 2013

ST. MODWEN REPORTS STRONG GROWTH DELIVERING £82.2M PROFIT BEFORE ALL TAX AND NET ASSET VALUE INCREASES OF 11%

Financial Highlights

• 56% increase in profit before all tax to £82.2m (2012: £52.8m)
• Shareholders’ NAV up 11% to 279p per share (2012: 251p per share), and EPRA NAV up 10% to 298p per share (2012: 272p per share)
• Realised property profits up 37% to £40m (2012: £29m)
• Successful completion of a £49m equity placing to support redevelopment of New Covent Garden Market
• 20% decrease in loan-to-value to 33% (2012: 41%)
• Final dividend for the year increased by 10% to 2.67p per share, providing a total dividend for 2013 of 4.00p per share (2012: 3.63p)

Operational Highlights

• Overall net valuation increase of £42m (Nov 2012: £28m), comprising gains of £28m (2012: £48m) as a result of planning gain asset management and £14m market driven valuation gain (2012: £20m loss)
• Elephant & Castle Shopping Centre sold for £80m
• Significant milestones completed across all major projects:
  • Longbridge – 150,000 sq ft pre-let secured to Marks & Spencer which will anchor the second phase of the new Town Centre
  • Swansea University, Bay Campus – first phase of works on schedule with student accommodation now underway
  • On track to deliver New Covent Garden Market – planning approval anticipated in 2015

As the Group utilises a number of joint venture arrangements, additional disclosures are provided to give a better understanding of our business. These include information on the Group including its share of joint ventures together with non-statutory measures such as trading profit and profit before all tax. A full of such measures is provided in Note 2 to the Group financial statements. 

Bill Oliver, Chief Executive of St. Modwen commented: 

“The recovery has gathered momentum in 2013 and, against this improving backdrop, we achieved a number of important milestones across our business. This has been illustrated by another strong set of results. 

“The improvement in the housing market is well documented, driven by strong demand from customers for our homes, and from housebuilders for our development-ready land. The recovery in the nationwide commercial property market also looks to be gathering momentum and we are optimistic for 2014. We will continue to create value from our portfolio of assets as we look to proactively manage those opportunities across the UK which have the ability to deliver attractive and consistent returns for shareholders. We look forward to another busy and successful year.” 

The Results Announcement contains certain forward looking statements which, by their nature, involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward looking statements. Any forward looking statements made by or on behalf of the Company are made in good faith based on the information available at the time the statement is made; no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. The Company does not undertake to update forward looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Nothing in this Results Announcement should be construed as a profit forecast. 

Enquiries: 

St. Modwen Properties PLC
Tel: 0121 222 9400 

Bill Oliver, Chief Executive 
Michael Dunn, Group Finance Director 
Charlotte McCarthy, Head of PR and Communications 

FTI Consulting Tel: 020 7831 3113 

Stephanie Highett
Dido Laurimore
Nick Taylor 

stmodwen@fticonsulting.com 

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 Kirsty Allan at FTI +44 (0)20 7269 7177 or Kirsty.allan@fticonsulting.com

To view the full press release, presentation and full report please click here