Regeneration specialist St Modwen back in profit

St Modwen, which specialises in redeveloping towns and cities across Britain and has been working on a 100-acre business park in Hull, said it had made a pre-tax profit of 26.7m for the six months to May 31, compared to a 98.3m loss for the same period last year.

Net rental income rose 1.8 per cent on the first half of 2009 and 6.1 per cent compared with the second half.

The gross annual rent roll now stands at 44.3m at May 31 this year, which the firm said was unchanged on a like-for-like basis compared with November 2009.

St Modwen also said it was resume dividends, with an interim payment of 1p per share, to be paid on September 6 to shareholders on the register at August 13 this year.

The firm said in a statement: "We continue to add to the Hopper, which now stands at over 5,600 acres, by making selective acquisitions of income-producing sites that are self-financing, and of development sites that complement our existing portfolio.

"Since the year-end we have committed 36m in acquiring 167 developable acres, including an eleven-site portfolio of industrial estates for 21.4m.

"With a rental income of 2.2m, this represents a net initial yield of 10.3 per cent.

"We also acquired a vehicle component factory in Hednesford which completes the site assembly for our 50m town centre redevelopment, for which planning should be granted this summer; a 20-acre business park at Clevedon with planning for 330,000 sq ft of commercial space; and 16 acres on two further sites in the Midlands which adjoin our existing ownerships, both with potential for residential uses."