DEVELOPER St Modwen posted an anticipated half-year loss after a revaluation of its property portfolio – but reaffirmed its commitment to the £150m Project Jennifer scheme in Liverpool.
Last year’s pre-tax loss of £20m widened to £98.3m in the six months to May 31, the group revealed. Revenues fell from £70.8m to £43.2m.
But the company dismissed the deficit as a “paper loss” caused by a 21% fall in the value of its town centre retail properties and an overall 12% drop in its group-wide portfolio as a result of the credit crunch.
Chairman Anthony Glossop pointed to a £6.8m trading profit and declared confidence in the group’s long-term prospects following a successful £102m share issue – its first in 20 years – and new banking facilities.
“Our confidence in the longer term remains undiminished.
“Our hopper (land bank) is at record levels, our finances are sound and the planning process, while cumbersome, is delivering the permissions we require for our future success.”
He said the share issue and banking facilities “has strengthened the group balance sheet and provides significant firepower”.
North West regional director Michelle Taylor added: “We’re pleased to be announcing a trading profit of £6.8m.
“Following the successful completion of our recent equity raising, we are in a good position to consider any new opportunities and can confirm that we are firmly open for business.”
Last month, the firm announced supermarket giant Sainsbury’s had committed itself as a flagship tenant for Project Jennifer.
Mrs Taylor said: “While there is still a large amount of work to be completed before we can proceed, we welcome the news that Sainsbury’s wishes to become part of the transformation of Great Homer Street.
“Our scheme is a large-scale regeneration project on which we have been working for the past seven years and it will create an entire new district centre for North Liverpool, to which we are fully committed.” St Modwen has registered its opposition to Everton’s proposed tie-up with Tesco to develop Kirkby town centre, including a new ground for Everton FC.
The firm believes a new Tesco superstore and additional shopping units will pose a significant threat to the retail aspect of its Project Jennifer scheme and its proposed revamp of Skelmersdale town centre.
