DEVELOPER St Modwen has posted a 40% rise in pre-tax profits for the six months to May 31 today.
They jumped from £26.7m to £37.4m, while revenues improved from £58.3m last time to £61.3m this year.
The group, which operates a regional base in Warrington, said it has also seen increased demand in the residential housing market, although the industrial and regional office sectors remain slow.
Property valuations increased by £25m and a 2% improvement in net rental income realised £17.8m, compared with £17.4m in 2010.
Since the end of its financial year the group has also signed a deal to develop office and production facilities for communications group Siemens in Lincoln.
Bill Oliver, St Modwen chairman, said: “We have achieved very strong results for the fist half of the year in markets that continue to present challenges.
“We are also seeing an increase in demand for developable residential land and we continue to progress our residential development programme both in-house and through joint ventures.”
He added: “Over the past two years we have focused heavily on site preparation, remediation and securing planning permissions, putting us in the highly competitive position of being able to offer ‘ready to develop’ sites to potential occupiers or investors.
“Increasingly, we are now turning our attention to growing our development pipeline.
“This will be achieved both by bringing forward new developments from our existing landbank and through the acquisition of new opportunities.”
One project to be brought forward, next year, is the £150m Project Jennifer scheme on Great Homer Street which will regenerate a deprived area of north Liverpool and create 1,100 jobs.
The development is finally set to start after a land dispute between supermarket giants Tesco and Sainsbury’s was settled.
And North West director Michelle Taylor outlined more progress around the region: “We’ve continued to make great strides forward in the North West, including completing the £2.8m sale of 20,000 sq ft of retail units that we developed at Connah’s Quay.
“Our £100m transformation of the former Vulcan Works site in Newton-le-Willows also achieved another major vote of confidence.
“Housing developer Jones Homes exercised its option to acquire another five-acre plot and plans to bring forward a second phase of residential development, following strong interest in its show homes.”
She added: “Venture Fields, our highly successful leisure scheme at the Widnes Waterfront, is almost fully let. The scheme will be completed on time and on budget and will welcome its first visitors this year.”
Looking forward, Mr Oliver said: “While the market has been tough and uncertainty remains, we believe that our strong, regionally based asset management skills, large and diverse landbank and ability to maximise development value, puts us in a strong position for future growth.”
