St Modwen Properties (SMP) expects to deliver record profits in the year to November 2015, as the property developer benefits from a continued revival in the regional property market.
Major projects include the regeneration of the 468-acre former MG Rover site at Longbridge, which has just entered its second phase, while phase one of the new £450m campus at Swansea University has been completed.
Having secured planning consent for its New Covent Garden Market site at Nine Elms in south London, work is expected to commence in 2017 and last for 10 years. And with St Modwen indicating that profits will be in line with expectations, there is unlikely to be any adverse valuation movements on the Nine Elms site as a result of recent relative weakness in the London housing market.
Analysts at Liberum are leaving their forecasts for the year to 30 November 2015 unchanged, giving adjusted net asset value per share of 448p (from 342p in 2014).
