1st Oct 2014 06:46
LONDON (Alliance News) - St Modwen Properties PLC Wednesday said it expects pretax profit for the full year to November 30 to be "materially ahead" of 2013, having increased beyond existing market consensus.
The company, which specialises in regenerating brownfield land across the UK, said improvement in the commercial property market continues to "gather momentum", and there is a noticeable acceleration in tenant enquiries across its sites, while occupancy levels remain high.
As a result, it said, "management expectations for the full year's profit before all tax have increased beyond existing market consensus and this is now expected to be materially ahead of 2013."
Birmingham-based St Modwen said it is experiencing growing appetite for commercial investment opportunities and since the first half it has agreed the sale of GBP38 million worth of assets.
FTSE 250-listed St Modwen said residential business continues to make gains, while the market for its residential land also remains "buoyant".
Since May, terms have been agreed for around GBP80 million of land sales to housebuilders seeking to increase their sales outlets.
"We anticipate the exchange or completion of these sales by the year end, all at above book value," the company said.
Financially, the company said having substantially restructured its debt portfolio at the half year it remains in a "strong" position, with over GBP170 million of undrawn facilities in place.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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