2nd Feb 2016 07:55
LONDON (Alliance News) - St Modwen Properties PLC on Tuesday posted a big rise in pretax profit as it made big gains on its portfolio in the financial year to the end of November, driving a 25% rise in its final dividend, and said its chief executive will retire at the end of the current financial year.
The FTSE 250-listed group, which focuses on regenerating brownfield sites and building residential developments, said its pretax profit for the year to November 30 nearly doubled, up to GBP258.4 million from GBP135.4 million.
St Modwen said the overall valuation of its portfolio increased GBP201.7 million over the course of the year, compared to a GBP93.5 million gain made a year earlier. While the market-driven gain for the group was lower year-on-year, down to GBP35.7 million from GBP57.6 million, St Modwen made a GBP166.0 million gain from planning and asset management initiatives, including a big contribution from its New Covent Garden Market assets in the Nine Elms area of south London.
Unconditional planning status was secured for the New Covent Garden Market development in the first half of the year, and this has been reflected the group's results and valuation of its portfolio. Interim works on the flower market are underway, St Modwen said, marking a significant step towards the group securing vacant possession of the Nine Elms Square site.
St Modwen will pay a final dividend of 3.85 pence per share, up from 3.137p a year earlier, pushing its total dividend up 25% to 5.75p from 4.6p.
"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," said Bill Oliver, St Modwen's chief executive.
"In 2016, a year which marks 30 years of St Modwen's status as a publicly listed company, we anticipate the creation of further value for our shareholders as we continue to invest in and regenerate areas nationwide," he added.
St Modwen said Oliver will retire at the end of November, the conclusion of its current financial year, after 13 years at the helm. The search for his replacement has started, it said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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