St Modwen posts strong start to year thanks to contract wins

Kasmira Jefford
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ST MODWEN, the FTSE 250 developer, said it has continued to perform well since the start of the year thanks to its recent £49m share placing and a contract win with Swansea University.

In a trading update, the regeneration specialist said good sales rates were being achieved across its residential business and welcomed the government’s new Help to Buy equity loan scheme to help more purchasers onto the property ladder.

Its commercial land and development arm in February signed a deal with Swansea University to deliver the first phase of its £450m new Science and Innovation Campus.

It also sold the income from the student housing at the university to fund manager M&G for £32m.

Chief executive Bill Oliver said the deal “illustrates clearly our ability to deliver shareholder value from long-term development opportunities”.

He said the redevelopment of New Covent Garden Market – the UK’s biggest flower and vegetable market – remains on track and it expects to submit planning application at the end of the year.

In February the group tapped investors for £49m of cash to help fund its £75m to £100m share of the costs of building the market.

Profits remain in line with expectations, the group said.