“We look forward to record full-year results for the twelfth consecutive year”

 

St Modwen Properties PLC, the regeneration specialist, today announces its interim results for the six months ended 31 May 2004.

 

Highlights include:

 

  • Profit before tax increased 23% to £22.1m (2003: £17.9m) 
  • Earnings per share up 28% to 12.9p (2003: 10.1p) 
  • Dividend increase of 14% to 2.5p per ordinary share (2002: 2.2p) 
  • Net assets per share increased by 17% to 195.3p (2003: 166.8p) 
  • Good progress made in marshalling the hopper for future development  

 

Commenting on the results, Anthony Glossop, Chairman of St. Modwen, said:

“We remain on course to grow in line with our long-term objective of doubling the net worth of the company every five years, and I look forward with confidence to reporting record full-year results for the twelfth consecutive year.”

 

CHAIRMAN’S STATEMENT

I  am  pleased to inform you that your company had a strong first half performance with profits before tax increasing by 23% to £22.1m (2003:
£17.9m).
 
The  profits benefited from the sale of the Pubmaster investment early in the period and significant property profits from a residential land
sale  at  Springfields and the completion of the Screwfix  project  at Trentham Lakes, both in Stoke-on-Trent; the sale of the first phase of
the Shrub Hill Retail Park, Worcester and a supermarket site for Tesco in Stafford.
 
Earnings per share increased by 28% to 12.9p (2003: 10.1p).
 
Dividends
 
These results, together with the prospects for the full year, have led the  board to declare a 14% increase in the interim dividend  to  2.5p
per ordinary share (2003: 2.2p) which will be paid on 3 September 2004 to shareholders on the register as at 6 August 2004.
 
Current Trading
 
The programme for the second half is looking increasingly secure: 
* The  270,000 sq. ft. manufacturing distribution and head  office complex for Duraflex at Tewkesbury has been completed.
 
* Further residential land sales are in solicitors' hands.
* A 20,000 sq. ft. building in the first phase at Quinton Business Park, Birmingham has been let to the Highways Agency and it, and a pre-
  let 10,000 sq. ft. office building, are now available  for sale.
 
* The consolidation of the principal tenant into a smaller area of  our  Huddersfield  site has not only produced  a  further  potential
  investment sale, but has released three land or building packages for disposal, two of which have been completed, and has provided a  site
  for a trade park for which planning has been obtained.
 
The Hopper
 
We  have continued to add to the hopper with appointments by Liverpool City  Council  as  preferred  developer for  the  Great  Homer  Street
regeneration project and by Liverpool Land Company as developer  of  a £40m employment scheme on the East Lancs Road.
 
We  have  also  been  selected by Cannock Chase Council  as  preferred developer  for two sites in Hednesford town centre including  a  major
foodstore opportunity.
 
In  addition, we have acquired a number of smaller sites  in  Burnley, Crewe, Stoke-on-Trent and Widnes.
 
A  key  element  of our strategy is the marshalling of the  hopper  to release opportunities for development in future years. We  have  made
good progress in this regard:
 
* Planning  permission was obtained for the  first  phase  of  the Longbridge development with Advantage West Midlands and we  are  now
  moving on to demolition and ground remediation.
 
* Planning permission, subject to agreeing a Section 106 agreement,  was  obtained for our joint venture redevelopment scheme at  Wembley
  Central  and  we are trying to use a window of opportunity  in  rail  closure terms to commence the scheme this year.
 
* The Trentham Gardens project is well under way. The gardens have reopened after a six month closure to allow basic restoration to  be
  carried out. The garden centre will open in September and the  first phase craft and leisure retail will follow this autumn.
 
Staff
 
Another  of  the  key  elements  of our  strategy  is  recruiting  and retaining a high quality team to manage the growing programme emerging
from  the  hopper. We have made a number of important recruitments  to the  construction, development and administrative teams,  and  further
recruitment is under way.
 
Future Prospects
 
We  remain  on course to grow in line with our long-term objective  of doubling  the  net worth of the company every five years  and  I  look
forward with confidence to reporting record full-year results for  the twelfth consecutive year.
 
 CC Anthony Glossop MA
Chairman
12 July 2004