St. Modwen sees FY at upper end of forecasts

Regeneration specialist St. Modwen Properties said it continued to make progress and expects full year rental income, trading profits and pre-tax profit ahead of 2010 and at the upper end of expectations.

Results are expected to include realised profit in excess of £20m from development activities.

Net asset growth for the year is expected to be at the upper end of management expectations. Group share of net rental income increased more than 3% year-on-year.

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The group completed residential land sales of £72m including £27m to the Persimmon joint venture. Another £50m of land is targeted for sale to the joint venture in 2012.

Chief executive Bill Oliver said, "We expect to report a strong performance this year, in spite of challenging market conditions."

"We continue to drive income growth across our portfolio. Demand for residential land remains robust, and we have made excellent progress in our housing development programme, both in joint venture with Persimmon and under our own housebuilding arm, St. Modwen Homes," he added.

St. Modwen said it has completed extended facilities with Lloyds for a £100m facility extending until November 2014 and an extended £19m Barclays facility for Trentham Gardens until September 2015.

Looking ahead Oliver said, "We have confidence in our prospects for continued growth in the company for 2012 and beyond."