St Modwen says trading is on course

 
Elizabeth Fournier
UK REGENERATION specialist St Modwen Properties said yesterday it was making good progress in a tough climate, as rental income, trading profits and cashflow all stayed in line with management expectations.

“We continue to make good progress in the year to date. Even in this challenging market,” said Bill Oliver, chief executive of St Modwen.

“We have been able to drive income throughout our portfolio and I am particularly encouraged by the continued resilience of our retail assets.”

The company said it had continued to perform well since first half results on 5 July, and said its residential business was “well positioned” with 80 per cent of its portfolio having either received planning permission or allocations within local plans.

Oliver also said the company had made further valuation gains within its development portfolio, “through active management initiatives and particularly by progressing sites through the planning process”.

In July, St Modwen posted a 40 per cent rise in first-half profits for the six months to 31 May, with profits of £374. on revenues of £61.4m

Its property valuations increased by £25m, and it saw a two per cent improvement in net rental income, which climbed to £17.8m compared to £17.4m a year earlier.