"While the economy is growing, we can always do well," says Bill Oliver, chief executive of St Modwen Properties (SMP). There was ample evidence to support his claim in last year's trading performance, which saw adjusted book value jump 16 per cent to 344p. In fact, the group scored well across all its commercial and residential operations, and continues to work towards crystallising the gains within its development portfolio.
Notable achievements included securing planning consent for the redevelopment of the New Covent Garden site in Nine Elms in London, paving the way for 3,000 new homes, 135,000 sq ft of office space and 100,000 sq ft of shops and leisure facilities.
The other major project is the £1bn regeneration of Longbridge in Birmingham. The site includes the construction of a 150,000 sq ft Marks and Spencer store, secured on a 35-year lease, which is expected to be completed in time for Christmas this year.
On the residential side, the joint venture with Persimmon delivered 562 new homes, and the group's own St Modwen Homes unit a further 258 units. That helped lift divisional profit by 167 per cent to £24m.
Analysts at Peel Hunt are forecasting year-end adjusted book value of 440p a share.
| ST MODWEN PROPERTIES (SMP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 430p | MARKET VALUE: | £952m | |
| TOUCH: | 429-430p | 12-MONTH HIGH: | 441p | LOW: 328p |
| DIVIDEND YIELD: | 1.1% | TRADING STOCK: | £201m | |
| PREMIUM TO NAV: | 32% | NET DEBT: | 52% | |
| INVESTMENT PROPERTIES: | £992m | |||
| Year to 30 Nov | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 218 | 38 | 18.6 | 3.0 |
| 2011 | 232 | 50 | 21.7 | 3.3 |
| 2012 | 251 | 47 | 21.3 | 3.6 |
| 2013 | 279 | 81 | 33.5 | 4.0 |
| 2014 | 325 | 138 | 52.7 | 4.6 |
| % change | +17 | +71 | +57 | +15 |
Ex-div: 5 Mar Payment: 2 Apr | ||||
