St. Modwen Properties increases first half NAV

Regeneration specialist St. Modwen Properties said NAV per share increased 5 per cent to 244p in the six months to 31 May 2012 and remains confident of growth through 2012 and beyond.

The land developer said the year has started very well, despite the on-going challenges posed by the wider economy, as it increases focus on the residential market.

St Modwen which, along with French group Vinci, have been selected to lead the £2bn redevelopment of London's New Covent Garden Market, said revenue for the six month period rose to £81m from £61.3m for the same period last year. Pre-tax profit fell to £30.4m from £37.4m before.

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As well as securing the New Covent Garden Market project, St. Modwen said it is also experiencing good returns from house sales through both the joint venture with Persimmon and its own housebuilding arm, St. Modwen Homes.

Realised property profits surged 48% to £16.6m and net rental income increased to £18.3m from £17.8m the same half a year earlier.

Commenting on the outlook for the firm, St. Modwen said: "Although the wider economic environment remains unpredictable and there may still be further challenges for the sector, we remain confident that our asset portfolio, development pipeline and significant London opportunities will continue to provide us with many opportunities to add considerable value for our shareholders and will help drive growth through 2012 and beyond."

Underlining its confidence in future trading, the group has increased the interim dividend by 10% to 1.21p per share.

CJ