5th July 2016
HALF YEAR RESULTS FOR THE SIX MONTHS TO 31ST MAY 2016
ST. MODWEN DELIVERS STRONG UNDERLYING PROFITS
St. Modwen Properties PLC (LSE: SMP), the UK’s leading regeneration specialist, announces its half year results for the six months to 31st May 2016.
- Shareholders’ equity NAV per share up 2% to 421p (Nov 2015: 414p) and EPRA NAV per share up 1% to 451p (Nov 2015: 446p)
- Profit before all tax of £30m (H1 2015: £206m including £128m New Covent Garden Market (NCGM) valuation gain)
- Results include a one-off £13m impact from the increase in Stamp Duty Land Tax (SDLT) and a £21m impact from the reduction in the NCGM valuation
- Trading profits of £34m in line with prior period’s record levels (H1 2015: £35m)
- Valuation gains of £28m before the impacts of SDLT and NCGM highlighted above
- Interim dividend increased by 2% to 1.94p per share (H1 2015: 1.9p per share)
- Commercial property development contributes £21m to strong property profits of £36m (H1 2015: £37m)
- 15% increase in residential profits to £15m (H1 2015: £13m), supported by good sales rates across the UK
- Increased investment in Private Rented Sector
- Major projects reaching important milestones with further long-term development potential:
- NCGM, Nine Elms, London – works to interim flower market have commenced as we progress towards vacant possession in 2017
- Bay Campus, Swansea University – works to phase 1c comprising 538 student apartments (bringing total number of student bedrooms to 2,000) on budget and on schedule for opening in September 2017
- Longbridge, Birmingham – town centre phase 2 now complete with further lettings to national retailers. Works to the Royal Centre for Defence Medicine facility progressing well
Bill Oliver, Chief Executive, St. Modwen said:
“These results demonstrate our ongoing ability to deliver strong underlying profits from our robust £1.7bn portfolio.
“Our 6,000 acre land bank provides us with the flexibility to focus our attention on those areas of the market that will provide the strongest shareholder returns. Value is also realised from a variety of asset management initiatives, whilst supported by the strength of the regional business which makes up over 75% of our total portfolio by value.
“Following the Referendum held on 23rd June 2016, we are now operating in a period of uncertainty in relation to many factors that impact the property market. Whilst it is too early to accurately predict how the UK property market will respond, until we have more clarity we believe it is appropriate to take a more cautious approach to the delivery of our development strategy”.
St. Modwen Properties PLC
Bill Oliver, Chief Executive
Hudson, Group Finance Director
Charlotte McCarthy, Head of PR and Communications
Tel: 0121 222 9400
Tel: 020 3727 1000
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