30th June 2015
As St Modwen Properties reported a huge profit increase this morning, Graham Spooner, investment research analyst at The Share Centre, explains what it mean for investors…
“This morning, St Modwen Properties Chief Executive Bill Oliver highlighted “record-breaking” results. The regeneration group has reported a 21% rise in net asset value to 394p along with a 306% increase in profit before all tax of £203.1m. Investors will also be pleased with the group’s increased interim dividend, which has risen from 1.463p per share to 1.9p.
“The FTSE 250-listed property company is benefiting from various large projects that have reached significant milestones, including its major Marks and Spencer development in Longbridge, Swansea University Campus and most importantly its New Covent Garden site. The group’s joint venture with Persimmon has also experienced good sales rates. Potential investors may want to take advantage of developers such as St Modwen, who are benefitting from continued improvement in the commercial and residential market.
“After these excellent results, the group has said it expects to see this positive momentum continuing. The track record of the company for developing brownfield sites, allied to the group’s confidence for its market place maintains our positive view. As a result, we recommend St Modwen Properties as a ‘buy’ for medium risk investors looking for growth within their portfolio.”