12th July 2004
St. Modwen Properties PLC - Interim Results for the six months ended 31st May 2004
"We look forward to record full-year results for the twelfth consecutive year"
St Modwen Properties PLC, the regeneration specialist, today announces its interim results for the six months ended 31 May 2004.
- Profit before tax increased 23% to £22.1m (2003: £17.9m)
- Earnings per share up 28% to 12.9p (2003: 10.1p)
- Dividend increase of 14% to 2.5p per ordinary share (2002: 2.2p)
- Net assets per share increased by 17% to 195.3p (2003: 166.8p)
- Good progress made in marshalling the hopper for future development
Commenting on the results, Anthony Glossop, Chairman of St. Modwen, said:
“We remain on course to grow in line with our long-term objective of doubling the net worth of the company every five years, and I look forward with confidence to reporting record full-year results for the twelfth consecutive year.”
I am pleased to inform you that your company had a strong first half performance with profits before tax increasing by 23% to £22.1m (2003:
The profits benefited from the sale of the Pubmaster investment early in the period and significant property profits from a residential land
sale at Springfields and the completion of the Screwfix project at Trentham Lakes, both in Stoke-on-Trent; the sale of the first phase of
the Shrub Hill Retail Park, Worcester and a supermarket site for Tesco in Stafford.
Earnings per share increased by 28% to 12.9p (2003: 10.1p).
These results, together with the prospects for the full year, have led the board to declare a 14% increase in the interim dividend to 2.5p
per ordinary share (2003: 2.2p) which will be paid on 3 September 2004 to shareholders on the register as at 6 August 2004.
The programme for the second half is looking increasingly secure:
* The 270,000 sq. ft. manufacturing distribution and head office complex for Duraflex at Tewkesbury has been completed.
* Further residential land sales are in solicitors' hands.
* A 20,000 sq. ft. building in the first phase at Quinton Business Park, Birmingham has been let to the Highways Agency and it, and a pre-
let 10,000 sq. ft. office building, are now available for sale.
* The consolidation of the principal tenant into a smaller area of our Huddersfield site has not only produced a further potential
investment sale, but has released three land or building packages for disposal, two of which have been completed, and has provided a site
for a trade park for which planning has been obtained.
We have continued to add to the hopper with appointments by Liverpool City Council as preferred developer for the Great Homer Street
regeneration project and by Liverpool Land Company as developer of a £40m employment scheme on the East Lancs Road.
We have also been selected by Cannock Chase Council as preferred developer for two sites in Hednesford town centre including a major
In addition, we have acquired a number of smaller sites in Burnley, Crewe, Stoke-on-Trent and Widnes.
A key element of our strategy is the marshalling of the hopper to release opportunities for development in future years. We have made
good progress in this regard:
* Planning permission was obtained for the first phase of the Longbridge development with Advantage West Midlands and we are now
moving on to demolition and ground remediation.
* Planning permission, subject to agreeing a Section 106 agreement, was obtained for our joint venture redevelopment scheme at Wembley
Central and we are trying to use a window of opportunity in rail closure terms to commence the scheme this year.
* The Trentham Gardens project is well under way. The gardens have reopened after a six month closure to allow basic restoration to be
carried out. The garden centre will open in September and the first phase craft and leisure retail will follow this autumn.
Another of the key elements of our strategy is recruiting and retaining a high quality team to manage the growing programme emerging
from the hopper. We have made a number of important recruitments to the construction, development and administrative teams, and further
recruitment is under way.
We remain on course to grow in line with our long-term objective of doubling the net worth of the company every five years and I look
forward with confidence to reporting record full-year results for the twelfth consecutive year.
CC Anthony Glossop MA
12 July 2004
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