Financial highlights
91% increase in profit before all tax to £258.4m* (2014: £135.4m)
Shareholders’ NAV per share up 27% to 413.5p (2014: 325.1p), and EPRA NAV per share up 30% to 446p (2014: 342p)
Earnings per share up 82% to 97.9p (2014: 53.8p)
Property profits up 31% to £67.4m (2014: £51.3m)
Overall valuation increase of £201.7m (2014: £93.5m) comprising market-driven valuation gain of £35.7m (2014: £57.6m) and gains of £166m (2014: £35.9m) as a result of planning and asset management initiatives which includes a significant contribution from New Covent Garden Market of £127m
Total dividend for the year increased by 25% to 5.75p per share (2014: 4.6p per share)
Operational highlights
Significant milestones completed across all major projects:
– New Covent Garden Market – unconditional status achieved during H1 and now reflected in the balance sheet. Interim flower market works are now underway, marking a significant step towards securing vacant possession of the 10-acre Nine Elms Square site
– Longbridge, Birmingham – phase 2 of the Town Centre complete with Marks & Spencer’s 150,000 sq ft new flagship store now trading along with other national retailers
– Bay Campus, Swansea University – new Campus opened in September 2015, welcoming 917 students. Phase 2 opened in January 2016 and Phase 3 to open in 2017
Commercial property development pipeline continues to deliver strong flow of profits
Continued growth in residential development profits
Well positioned for continued growth
Supportive investor market anticipated in 2016 for disposal of mature assets
Expect steady demand for our residential land with continued growth from St. Modwen Homes
Continue to replenish 1.6m sq ft commercial development pipeline with new opportunities from existing land bank and through acquisitions
Positive outlook for continued NAV growth over the next 12 months
*includes £127.4m being the Group share of the gain from initial recognition of New Covent Garden Market
Bill Oliver, Chief Executive of St. Modwen, commented:
“It is extremely pleasing to achieve record profits and growth from a year of excellent delivery across all areas of the portfolio, by type and geography.
“During the year, significant momentum has been created in the Company as a result of us continually restocking our pipeline of residential and commercial development with new opportunities sourced from our existing land bank as well as through new acquisitions.
“In 2016, a year which marks 30 years of St. Modwen’s status as a publicly listed company, we anticipate the creation of further value for our shareholders as we continue to invest in and regenerate areas nationwide.”
Rupert Joseland, South West regional director for St. Modwen added:
“Development at our 14 commercial and mixed-use schemes across the South West has continued to gather pace during 2015. Key highlights have included the completion of our 32 acre Quedgeley West Business Park in Gloucestershire, where 490,000 sq ft of distribution and industrial space is now occupied. Work is well underway on Gateway 12 at Waterwells Business Park, where we sold the first 41,000 sq ft unit and a second 40,500 sq ft speculative unit is under construction with more planned for 2016.
“Our mixed-use, 92 acre development at Littlecombe in Dursley is nearing completion and by 2018, will provide around 450 new homes and apartments, employment space and a community hospital with around 40 acres of green open space.
“In Avonmouth, we completed this month a new 43,000 sq ft warehousing facility for parcel distribution firm, Hermes Parcelnet Ltd, as it expands operations to take advantage of new market opportunities across the South West. Work is also underway on a second 37,000 sq ft unit which was built on a speculative basis and then pre-sold to Kent Foods. Construction work has now commenced on a further two speculative units totalling 68,000 sq ft, which will complete in autumn 2016.
“In Taunton, we have submitted a planning application for the £105m Firepool scheme, with consent anticipated in 2016. This will mark a key milestone in the delivery of this important town centre, which is already underway on the South side of the river with 49 new riverside homes. Firepool is a vital link in the chain of Taunton’s wider regeneration plans and one of the biggest mixed-use schemes in the region, with the potential to create in excess of 1,800 jobs. The site’s comprehensive mix of uses will include offices, hotel, residential development, cafes / bar-restaurants on the waterfront, cinema, supermarket and high quality shopping.
“The 110 acre Skypark scheme, situated to the north of Exeter Airport, is taking shape. This year we invested £3.5m investment in infrastructure and completed a new 60,000 sq ft flagship distribution centre to national express delivery service, DPD (UK). The facility is one of three across the UK that St. Modwen has delivering for DPD and totalling 189,000 sq ft. On completion, Skypark will provide 1.4 million sq ft of warehouse, industrial and office space and provide up to 6,500 new jobs.
“We have received detailed planning consent to build 168 new homes, as part of the total 1,450 homes planned at Locking Parklands, Weston-super-Mare. Since works first began on this £400m mixed-use scheme, we have completed 250 new homes and 6,000 sq ft of office space.
“We look forward to 2016 as an opportunity to further expand our presence in the South West and to continue to add value to the portfolio.”
