HALF YEAR RESULTS FOR THE SIX MONTHS TO 31 MAY 2014
STRATEGY FOR GROWTH GENERATES 32% INCREASE IN PROFIT BEFORE ALL TAX TO £51.3M
St. Modwen Properties PLC (LSE: SMP), the UK’s leading regeneration specialist, announces its half year results for the six months to 31st May 2014.
Financial Highlights – excellent increased returns
– 32% increase in profit before all tax to £51.3m (H1 2013: £38.8m)
– 6% increase in shareholders’ equity NAV per share to 294.2p (Nov 2013: 278.8p per share) and EPRA NAV up 6% to 314.4p per share (Nov 2013: 297.7p per share)
– Realised property profits of £19.1m (H1 2013: £16.1m)
– Net valuation gain of £35m (H1 2013: £23m) comprising added value gains generated by the Company of £16m (H1 2013: £18m) and market driven valuation gains of £19m (H1 2013: £5m)
– Launch of £100m convertible bond in February 2014 and refinancing of debt portfolio, extending average life to 4.2 years (Nov 2013: 2.5 years) and reducing weighted average cost of debt to 5.1% (Nov 2013: 5.6%)
– 10% increase in interim dividend to 1.463p per share (H1 2013: 1.33p per share)
Operational Highlights – major projects gathering momentum alongside growth in commercial property sector
– Increasing commercial development pipeline across the UK reflecting the gradual, overall improvement of this market
– Good progress made across all major projects:
o New Covent Garden Market – submission of a planning application in May 2014 for the redevelopment of the New Covent Garden Market site
o Swansea University, Bay Campus – next phase of the £450m campus now agreed with Swansea University, comprising an additional 545 student apartments. Delivery of the first phase progressing extremely well and is on target for the scheduled completion in September 2015
o Longbridge, Birmingham – a resolution to grant planning permission was secured on 26th June 2014 for the second phase of the Town Centre, comprising a 150,000 sq ft Marks & Spencer full-offer store and 45,000 sq ft of additional retail accommodation
o London residential sites – excellent sales rates continue to be achieved for both the Millbrook Park (RAF Mill Hill) and St. Andrew’s Park (RAF Uxbridge) sites, demonstrating the favourable conditions in the London residential market.
– Positive outlook for residential land activity and good sales rates being achieved for both St. Modwen Homes and the Persimmon joint venture, with increasing demand at a growing number of sales outlets.
Bill Oliver, Chief Executive of St. Modwen, commented:
“Against a backdrop of improving optimism across the country, we are prudently increasing our pipeline of development activities and actively pursuing new opportunities to meet growing investor interest and occupier demand.
“Whilst we are still some way from a wholesale UK recovery, confidence is starting to return to the regions. Here our traditional engine of growth, commercial development, is beginning to gain momentum with over 1m sq ft of regional commercial projects in progress. This combined with our improving valuations particularly in the residential sector, underpin our confidence for continued outperformance as we work towards the full year.”
Enquiries: St. Modwen Properties PLC
Bill Oliver, Chief Executive
Michael Dunn, Group Finance Director
Charlotte McCarthy, Head of PR and Communications
www.stmodwen.co.uk
Tel: 0121 222 9400
FTI Consulting
Stephanie Highett
Dido Laurimore
Tel: 020 3727 1000
