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."

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