Financial Highlights
• Shareholders’ NAV up 8% to 251p per share (Nov 2011: 232p per share), and EPRA NAV up 9% to 272p per share (2011: 250p per share)
• Profit before all tax £52.8m (2011: £51.7m)
• Realised property profits up 22% to £29.0m (2011: £23.8m)
• Net rental income continues to grow to £36.2m (2011: £35.5m)
• 12% increase in net trading profit to £25.5m (2011: £22.8m)
• Gearing at year end of 71% (2011: 73%) and completion of a successful £80m retail bond issue providing substantial headroom in facilities
• Final dividend for the year increased by 10% to 2.42p per share, providing a total dividend for 2012 of 3.63p
Operational Highlights
• Valuation gains of £48m (2011: £33m) generated through active asset management and planning gains, offsetting £20m market driven valuation loss (2011: £1m profit)
• Continued positive outlook for residential land with London residential transactions driving valuation gains
• On track to deliver target of shareholder equity NAV of 300p per share by November 2015
• £2bn regeneration of New Covent Garden Market signed, providing a major opportunity in Central London and considerable potential to add further upside to targetted NAV
• Swansea University £150m development to commence on site in H1 2013
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:
”This has been another successful year during which we have achieved some significant milestones across our portfolio and, in particular, on our major development projects. These achievements underline our growing presence in the London and the South East market while also proving that there are still opportunities in the regions for well-placed and well-priced product.
“We cannot ignore the current upsurge in investor appetite for development activity in London and the South East and the prospects arising across the UK from our residential portfolio. We will therefore focus our attention throughout the coming year on these specific areas in order to drive optimal returns, as well as advancing our larger schemes, including of course the New Covent Garden Market and Swansea University developments.”
Comment from John Dodds, Midlands Regional Director:
“Our continued careful management of our Midlands assets alongside a range of exciting regeneration projects, ensures that we will remain active and productive throughout the coming years.
“The £1 billion flagship regeneration of Longbridge is progressing well. The £70 million town centre is attracting a range of operators and retailers and the new Austin Park is being constructed and landscaped. Set to open this summer, the town centre will feature a Sainsbury’s supermarket, 75 bedroom Premier Inn hotel and 24 shops, restaurants and cafés in addition to flexible modern office space. Only two of the 113 homes at the Park View residential development remain for sale with planning permission now obtained for the next phase.
“We are concentrating on growing our successful residential portfolio with a number of residential-led regeneration schemes, working in partnership with St. Modwen Homes and through our joint venture with Persimmon. St. Modwen Homes is starting to build new homes in Coalville, Rugby and Worcester as well as the next phase at Longbridge.
“Work is due to start on the first phase of development at the Long Marston Estate, which will include 284 homes and unlock an abundance of green space and recreational activities for Stratford-upon-Avon residents. Work is also set to begin on developments at the Pirelli factory site just outside Burton-upon-Trent, Pye Green in Hednesford and the former Castleworks in Stafford.
“Our £150 million regeneration of the former Goodyear works in Wolverhampton has seen the construction of 100 new homes, together with an Aldi supermarket and a family-led pub restaurant. In addition we have recently completed our £50 million transformation of Hednesford town centre. Demand for industrial space and land in the region has been strong throughout the past year and the great majority of our stock is fully occupied.”