Record profits for St Modwen Properties

Birmingham-based regeneration specialists St Modwen has reported a 91 per cent rise in pre-tax profits for its last financial year.

It was up from £135.4 million to a record £258.4m for the year to the end of November.

Chief executive Bill Oliver is retiring and will leave St. Modwen at the end of the current financial year after 13 years in post.

Bill Shannon, chairman of St Modwen, said he had made a significant contribution to both the property industry and St Modwen during his long and successful career.

Mr Oliver said he had every confidence the senior management would continue to drive the business forward.

Shareholders# net asset value was also up by 27 per cent to 413.5p and the total dividend for the year increased by 25 per cent to 5.75p per share.

The overall valuation of its total portfolio increase by £201.7m to £1.69bn.

St Modwen, which celebrates its 30th anniversary as a public listed company this year, now has a land bank of 6,000 acres and a commercial property pipeline of 1.6 million sq ft.

At Longbridge, Birmingham, phase two of the town centre is now complete with Marks & Spencer's 150,000 sq ft new flagship store now trading along with other national retailers.

The group expects steady demand for its residential land with continued growth from St Modwen Homes.

Mr Oliver said: "It is extremely pleasing to achieve record profits and growth from a year of excellent delivery across all areas of the portfolio, by type and geography.

"During the year, significant momentum has been created in the Company as a result of us continually restocking our pipeline of residential and commercial development with new opportunities sourced from our existing land bank as well as through new acquisitions."

This year, new opportunities include a variety of schemes throughout the UK, such as a 214,000 sq ft design and build project for Travis Perkins in Whitley, Coventry and 148,000 sq ft of speculative development in Avonmouth, Bristol of which more than 50 per cent is now let and sold.

Last year saw an overall profit increase of 21 per cent for the housebuilding business to £29m, of which St. Modwen Homes contributed £12m and the Persimmon joint venture contributed £17m.