Longbridge developer St Modwen back in profit after tough year
Birmingham-based regeneration specialist St Modwen has returned to profit, a year after making a loss of nearly £100 million in six months.
The company, which is behind the Longbridge regeneration scheme among many others, announced a pre-tax profit of £26.7 million for the six months up to May 31.
This was compared to a loss of £98.3 million in the same period the year before, during a terrible year that saw income collapse as the construction and commercial property markets tanked.
But the company said things had been improving throughout the second half of 2009, and it had expected to be back in the black by this point.
It has also resumed paying dividends, with an interim payment of 1p per share for shareholders.
In its most recent development, the firm has paid £21.4 million for a portfolio of 11 industrial estates, which will bring in an annual rental income of £2.2 million. Since the end of the year it has spend £36 million on acquiring 167 developable acres.
St Modwen chairman Anthony Glossop said the market was still looking weak, but the company had received a number of approaches for future development profits, and was confident of improving on its profit figures.
In a statement to the stock exchange, he added: "As anticipated in our March trading update, I am delighted to be able to report a significant improvement in our trading performance for the half year, which has produced an NAV increase of 6.8 per cent in the period and enabled us to resume the payment of dividends."