St. Modwen Properties PLC (LSE: SMP), the UK’s leading regeneration specialist, has announced its half year results for the six months to 31st May 2015.
Financial Highlights
– 306% increase in profit before all tax to £203.1m (H1 2014: £50.0m)
– 21% increase in NAV per share to 394p (Nov 2014: 325p) and EPRA NAV per share up 25% to 427p (Nov 2014: 342p)
– Earnings per share up 281% to 75.4p (H1 2014: 19.8p)
– Initial recognition of New Covent Garden Market (NCGM) contributes £128.0m to net valuation increase of £170.2m (H1 2014: £33.7m)
– Realised property profits of £41.3m (H1 2014: £19.1m)
– 30% increase in interim dividend to 1.9p per share (2014: 1.463p per share)
Operational Highlights
– Major projects reaching significant milestones:
– NCGM – unconditional status achieved on 57-acre Nine Elms site in April 2015, with project now included on balance sheet
– Swansea University, Bay Campus – initial development phases on schedule to complete, ready to welcome first students in September 2015
– Longbridge – 150,000 sq ft Marks & Spencer store on track to open in November 2015
– Commercial property development pipeline delivers strong flow of profits
– Continued activity across the residential market, with good sales rates achieved across the Persimmon joint venture and for St. Modwen Homes, with continued housebuilder appetite for residential land
Bill Oliver, Chief Executive, St. Modwen said:
“These record-breaking results are underpinned by the growth in the UK property sector and are testament to our continued belief in the regional marketplace and our long-term approach to regeneration as a whole. They are positively supported by our three major projects reaching significant milestones in the period. Most notably the New Covent Garden Market site in Nine Elms, London reached unconditional status in April.
“We continue to increase our levels of both residential and commercial development and to add further value to our major projects and our broader £1.5bn property portfolio, delivering maximum returns for the business and for our shareholders.”
Rupert Joseland, South West regional director for St. Modwen added:
“The residential and commercial market continues to perform well across the South West, as reflected by our healthy commercial property valuations and yields, as well as profit margins for our residential brand, St. Modwen Homes.
“We have 14 commercial and mixed-use sites underway across Gloucestershire, Somerset, Wiltshire, Avon and Devon. Recent highlights include the new 60,000 sq ft flagship depot for DPD (UK) at our £210m Skypark scheme in Exeter, which is on track to complete in October, with the creation of 147 new local jobs. It is one of three such facilities across the UK that St. Modwen is delivering for DPD (UK), alongside a 69,000 sq ft depot in Stonebridge Park, Liverpool and a 60,000 sq ft facility in Newcastle, Stoke-on-Trent. All three facilities are now in Solicitors’ hands for sale of the investment.
“The final two buildings at our Quedgeley West Business Park in Gloucestershire have now been delivered with one sold and the other under offer. This marks the completion of the entire site, where over 460,000 sq ft of distribution and industrial space is occupied. Work is now underway on the first speculative commercial unit at neighbouring 16 acre Gateway 12 development at Waterwells Business Park. Scheduled to complete this summer, the unit will provide 40,942 sq ft of prime location warehouse and industrial space available for purchase or rent by firms looking to expand or relocate in the south west.
“We have recently started work on a new warehousing facility for parcel distribution firm Hermes Parcelnet Ltd at our 212 acre Access 18 development in Avonmouth. In addition to the Hermes deal, we have been granted planning consent to build a further 107,000 sq ft of warehouse and industrial space at the site for purchase or rent by interested parties. Work on the first speculative unit of 37,000 sq ft has already started and will be ready for an occupier to move in during the first quarter of 2016.
“Elsewhere, we soon hope to submit a planning application to build an additional 166 St. Modwen homes at our mixed use development, Locking Parklands, in Weston-super-Mare. Plans for the mixed-use scheme at Firepool in Taunton have also moved forward with start work on the first phase of new homes as part of the wider site master plan.
“St. Modwen remains wholly committed to driving social and economic regeneration across the South West and, thanks to a growing development pipeline for the region and strong working relationships with key local public and private sector partners, we are confident that the second half of 2015 will deliver another solid performance for the company.”
