Developer’s pre-tax profits fall 80%

Developer's pre-tax profits fall 80%



Developer St Modwen Properties has revealed that its unaudited pre-tax profits fell 80.3% in the first half of 2016.


In an H1 2016 statement, the firm posted pre-tax profits of £35.5m, down from £180.2m the previous year. 

Bill Oliver, Chief Executive at St Modwen, said: "Following the [EU] referendum held on 23rd June 2016, we are now operating in a period of uncertainty in relation to many factors that impact the property market.

“While it is too early to accurately predict how the UK property market will respond, until we have more clarity we believe it is appropriate to take a more cautious approach to the delivery of our development strategy.” 

St Modwen credited the high H1 2015 pre-tax profit results, which were audited in November at £235.2m, to a £128m valuation increase as part of a 10-year New Covent Garden Market (NCGM) joint venture with VINCI. 

The firm blamed this year’s reduced results on a £21m reduction of the valuation of its share in the NCGM asset and a one-off £13m hit from the rise in stamp duty land tax in April. 

Despite pre-tax profit falling, residential profits rose 15% to £15m. 

Property profits stayed at similar levels to H1 2015, falling just £1m to £36m. 

Bill added: “These results demonstrate our ongoing ability to deliver strong underlying profits from our robust £1.7bn portfolio.

"Our 6,000-acre land bank provides us with the flexibility to focus our attention on those areas of the market that will provide the strongest shareholder returns.” 

Founded in 1986, St Modwen Properties specialises in the regeneration of complex, challenging or contaminated sites. 

In addition to the NCGM scheme, the firm’s portfolio also includes a transformation of Longbridge, Birmingham, and the on-going regeneration of over 2,500 acres of former industrial land in south Wales. 



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