St Modwen makes cuts as economic crisis deepens

St Modwen, the developer behind several North West schemes including the Great George Street retail development in Liverpool, Widnes Waterfront and Avro Park in Trafford, told the stock market today it would implement a business-wide cost cutting drive.

The six months preceeding May 31 of this year saw a 4% fall in net asset value per share to 371p, as well as a £20m pretax loss, the firm said, compared with a £65m profit one year earlier.

Describing the residential land market as "virtually non existent", it added: "We do not expect this market to recover for some time, and are planning our business accordingly.

"Cash management and cost control are the priorities at this time, and the necessary decisions are being taken to maintain the long term potential of the business and to ensure that we continue to operate within our banking covenants."

Deals during the period included a letting to Homebase at a bulky goods retail park in Runcorn.