A strong pipeline keeps work flowing for St Modwen

In the six months ended May 31, the company achieved a three per cent increase in net rental income to £18.3m, at a time when London residential transactions were delivering significant valuation gains and cash flow.

The company said a policy of active portfolio management was generating value in weak market conditions.

Profit before tax was £34.9m, compared with £37.9m in the same period last year.

Bill Oliver, the company’s chief executive, said: “Our year has started very well, despite the ongoing challenges posed by the wider economy, enabling us to deliver a strong set of first half results.

“Our strategy of an increasing residential focus, with more emphasis on London and the South East, has enabled us to continue to grow the net asset value of the company.

“We have secured significant opportunities in London and we are confident that this progress, together with strong momentum on our housebuilding sites, will deliver additional property profits to boost our results for 2012 and future years.”

The company’s work pipeline includes projects at New Covent Garden Market and the Elephant & Castle in London.

The company achieved a 48 per cent increase in realised property profits to £16.6m in its half year results.

Stephen Prosser, the Yorkshire and North East regional director for St Modwen, said yesterday: “We have experienced sustained occupier demand across Yorkshire in the first half of 2012.”

According to Mr Prosser, lettings have been agreed at seven industrial estates, despite the “challenging economic conditions”.

Mr Prosser said that St Modwen was making progress with a number of projects, including a £20m Siemens facility at Teal Park in Lincoln, which is due for completion in the autumn. He added: “We have recently exchanged contracts on this facility, with completion of the sale expected to take place in October 2012.

“Site preparation works are currently underway at our Wheatley Hall Road site in Doncaster and main construction will start during the summer.”

Mr Prosser said the company’s residential programme was also “progressing well” at its site in Sunderland, which is a joint venture with York-based Persimmon.

The company is also moving forward with proposals to include residential uses at its Melton Park site in East Yorkshire.

He added: “Finally, St Modwen has been selected by Dyson Group as its promotional partner for the preparation and disposal of some of its surplus land assets. This extensive portfolio offers us an opportunity to work with Dyson across our regional offices in North Staffordshire, the Midlands and Yorkshire with the support of our central construction, planning and residential teams.”