DEVELOPER St Modwen has returned to profit and will resume dividend payments as it revealed new confidence in the property sector.
The group behind the £150m Project Jennifer scheme in Great Homer Street reported a £26.7m pre-tax profit for the six months to May 31 today, compared with a £98.3m loss the same time last year.
Chairman Anthony Glossop said the confidence in the group’s trading performance and an increase in asset valuations as real estate investor appetite returns has enabled St Modwen to resume dividend payments to shareholders with a 1p interim payment.
Revenues during the period rose from £43.2m last year to £58.3m in 2010, said the group which has a regional base in Warrington.
Debt was also cut by £17.3m and net rental income rose 1.8% compared with the first half of 2009 and 6.1% compared with the second half of last year.
Mr Glossop also announced a £36m investment in 167 developable acres, including an 11-site portfolio of industrial estates for £21.4m with an annual rental income of £2.2m.
He said: “Investor appetite has improved, housebuilder activity is returning and we have secured a number of schemes which will contribute to future periods’ profits.”
St Modwen will press on with the development of Project Jennifer, including new homes, a health centre and a library, after the High Court last month rejected objections by supermarket group Tesco which had delayed work on the scheme.
