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Annual Results

St Modwen Properties' FY pretax profit tumbles

07 February 2017 07:26

St Modwen Properties has booked a much lower FY pretax profit of £66m, from a profit of £235.2m a year earlier.

The results included broadly flat revenue at £287.7m, from £287.5m, but lower contributions for gains on disposals and revaluation gains. Administrative expenses were higher, and it booked a loss on joint ventures and associates from a year-earlier profit.

However, its EPRA net asset value per share rose to 460.5p, from 446.4p, and total dividend was hiked to 6p a share, from 5.75p.

"Active commercial property development and asset management, coupled with a strongly performing and growing residential arm, contributed to another good year for St. Modwen," said CEO Mark Allan.

"This is despite the turbulent market backdrop during 2016," he added.

Allen said the company had begun a review of what he believed was a "fundamentally strong" business and portfolio to determine its strategy moving forward.

"We unquestionably have an opportunity to build on our existing strengths while ensuring that our activities are focused in the optimum way and I am excited about the prospects ahead."

OUTLOOK

St. Modwen said it was a long-term business operating in cyclical markets and therefore must plan and manage its business accordingly.

"The past 12 months have been unsettled in this respect and the outlook for 2017 and 2018 looks to be similarly uncertain, as a range of macro-economic factors play out both globally and more locally to the UK," it said.

"With this outlook, it is important that we continue to manage our balance sheet prudently while also seeking out appropriate new value creation opportunities and converting existing ones.

"This will require an innovative and agile approach but our track record suggests we remain well placed to succeed."

Story provided by StockMarketWire.com

Related Company: SMP

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