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 Wales regional director for St. Modwen added:
“We have continued to see a steady upturn in both the residential and commercial sectors in South Wales as market confidence continues to improve in line with other areas across the UK. Our commercial property valuations and yields are up, as well as profit margins for our residential brand, St. Modwen Homes, which made its Wales debut last year at Glan Llyn in Newport.
“The initial phases of the £450m Swansea University, Bay Campus, are almost complete as we count down to welcoming the first students this September. The new Campus comprises 1,000,000 sq ft of academic buildings and accommodation for over 1,450 students, with direct access to the beach. Our new facilities management brand, St. Modwen Student Living, has also secured the contract to fully manage and service the student accommodation and associated amenities.
“On the residential side, our housebuilding brand, St. Modwen Homes, is making good progress in the Welsh market with 47 new homes underway, and 90 more in the pipeline, at our £1bn community, Glan Llyn, in Newport. We expect to start building a further 79 new homes further down the M4 at Coed Darcy later this year and have submitted a planning application to build around 300 new homes at our Hendrefoilan development in Swansea.
“On the commercial side of the business, start of work on the first speculative 50,000 sq ft unit at the 100 acre Celtic Business Park within the Glan Llyn development, is now underway as well as a major new access road into the Business Park. We have also submitted a planning application to increase our working 30-acre solar park at Baglan Bay with an additional 40,000 solar panels, which in time would provide enough renewable clean energy to power over 2,000 homes and commercial developments across South Wales.”