15th year of record profits for St Modwen

Feb 11 2008

REGENERATION specialist St Modwen Properties reported its 15th consecutive year of record results today.

Pre-tax profits for the year to November 30 increased by 3% to £100.1m from £96.9m.

And the company, which has seven regional offices, including a Warrington base, said it still expected long term growth despite the current downturn in the market.

St Modwen is involved in a range of developments across the region including the £350m revamp of Skelmersdale town centre, the £150m “Project Jennifer” redevelopment of Great Homer Street and Scotland Road, the £40m Stonebridge Business Park on the East Lancs Road and Prescot Business Park.

Company chairman Anthony Glossop said: “There will undoubtedly be some further deterioration in the market value of investment properties, particularly in the first half of 2008, and we cannot be immune from the effects of that.

“However we are planning that overall the year will see growth in the company’s net asset value, albeit at a lower level than in the recent past.”

He added: “The company’s strategy, being essentially long term, is not altered because of the current weakness in the investment market.”

Funding requirements have been secured through to 2011 “at competitive margins,” Mr Glossop revealed.

Chief executive Bill Oliver said they expected property prices to fall during 2008 by 10-15%.

But he added: “Prudent appraisals and valuations, which we believe have always been our hallmark, are obviously less vulnerable than aspirational ones.”

The group said the business park market remained difficult but it had continued to do well in the small office unit market.

Industrial markets remained solid but there was a more cautious approach to residential developments.

Mr Oliver complained that reforms to make planning processes easier had failed and “costs and timescales continue to escalate with every new initiative, guidance and regulation”.

Other local developments in the pipeline include an employment site on Widnes Waterfront and a key residential scheme in Newton-le- Willows.