Property and regeneration specialist St Modwen has revealed an underlying trading profit of £6.8m at its half-year results, reporting that housebuilders are tentatively back in the land market.
The net asset value (NAV) of St Modwen's regeneration projects and giant brownfield landbank fell 20 per cent in the period, causing a pre-tax loss of £98m. But following last month's £102m placing, the group has renegotiated debt covenants to give it a comfortable level of headroom.
Chief executive Bill Oliver said that St Modwen expected to sell another three or four sites to housebuilders by the year-end, at or around current book values. All are low density and suitable for family homes rather than flats. "We're not saying this will necessarily increase NAV, but it will stop it from being eroded," he says.
