Developer reports solid half-year results
St Modwen increased its development pipeline and grew revenue and pre-tax profit in its half-year results to 31 May 2014.
The developer is progressing several major schemes, including the 拢2bn redevelopment of London鈥檚 Covent Garden Market (pictured), the 拢1bn regeneration of the former MG Rover site at Longbridge, and a 拢450m Bay Campus for Swansea University.
St Modwen said it was 鈥渋ncreasing commercial development pipeline across the UK reflecting the gradual, overall improvement of this market鈥�.
The developer reported a 73% increase in revenue to 拢110.1m for the half-year, with pre-tax profit also up 33% to 拢50.3m.
St Modwen鈥檚 housing arm agreed or completed seven land sales during the period representing 43 acres and 拢40m of development value and is targeting further land sales in the second half representing 70 sites and circa 拢80m of development value.
Bill Oliver, chief executive of St. Modwen, said: 鈥淎gainst a backdrop of improving optimism across the country, we are prudently increasing our pipeline of development activities and actively pursuing new opportunities to meet growing investor interest and occupier demand.
鈥淲hilst we are still some way from a wholesale UK recovery, confidence is starting to return to the regions.
鈥淗ere our traditional engine of growth, commercial development, is beginning to gain momentum with over 1m sq ft of regional commercial projects in progress.
鈥淭his combined with our improving valuations particularly in the residential sector, underpin our confidence for continued outperformance as we work towards the full year.鈥�
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