St Modwen hopeful despite £100m loss

St Modwen, the listed developer with major projects across the North West, today posted a post-tax loss of £101.7m for the year to the end of November 2009.

Chairman Anthony Glossop said in a statement to the stock exchange that a trading profit of £8.4m (2008: £19.5m) turned into a loss after revaluations and other non-cash items. The loss was mainly felt in the first half of the year, accounting for £80.6m of the £101.7m, and the market has recovered 'significantly' since then.

The business refinanced to the tune of £101.6m during the year, in line with the loss, through the issue of new equity. It also renegotiated banking covenants and raised £101m from property disposals.

The developer has a regional base in Risley and owns assets in Widnes, Knowsley, Blackburn and Wythenshawe with further plans for North Liverpool, Skelmersdale and Connah's Quay.

Net assets showed a decline of 20% in the year and stood at 200p a share (2008: 251p) at year end.

Glossop said: "The economy may be slowly emerging from recession but business confidence remains fragile, with continued pressure on rents and occupancy levels.

"However, St Modwen is well prepared for such conditions: our financial position is sound; our business model will increasingly create value; and we are in a good position to seize attractive opportunities to add further to the Hopper.

"I am confident that 2010 will see the company returning to growth in profits and net asset value."

Your Comments

Subscribe to our newsletter