The UK’s leading regeneration specialist St Modwen, says that the sustained improvement in the regional commercial and residential markets, along with achieving a major project milestone, are the factors behind its strong first half of the year.
In a trading update issued today, covering activity during the six months to 31st May, the company reports that it has continued to perform strongly since its annual results were announced in February.
St Modwen’s performance has been assisted by the momentum in the regional property markets which has allowed the firm to press ahead with a number of schemes in its pipeline. Another highpoint of the last six months was achieving unconditional status for the New Covent Garden Market regeneration project (pictured).
This milestone clears the way for work to begin on the scheme, which will deliver 235,000 sq ft of office, retail and leisure space, along with 500,000 sq ft of market facilities and 3,000 new homes.
The development is the final piece in the jigsaw of the Nine Elms regeneration scheme which is set to transform the former industrial area on London’s South Bank into a new business and residential district. Work will begin later this year and is expected to take a decade to complete.
Commenting on the trading update, St Modwen Chief Executive, Bill Oliver, said: “As anticipated at the full year, we are now taking full advantage of the market recovery and are focusing our efforts on delivering commercial and residential development in the regions and progressing our major projects.
“The highlight of the period has been the achievement of unconditional status for the New Covent Garden Market project in April, which will have a major impact on the half year valuations.
“Cumulatively, this all points to a positive outlook for the company, both in terms of profit and net asset value growth, and a record set of half year results.”
As a result management expectations for the full year are unchanged, while profits before tax in the first half of the year are anticipated to be significantly ahead of the 2014 first half results.