Financial highlights
91% increase in profit before all tax to £258.4m* (2014: £135.4m)
Shareholders’ NAV per share up 27% to 413.5p (2014: 325.1p), and EPRA NAV per share up 30% to 446p (2014: 342p)
Earnings per share up 82% to 97.9p (2014: 53.8p)
Property profits up 31% to £67.4m (2014: £51.3m)
Overall valuation increase of £201.7m (2014: £93.5m) comprising market-driven valuation gain of £35.7m (2014: £57.6m) and gains of £166m (2014: £35.9m) as a result of planning and asset management initiatives which includes a significant contribution from New Covent Garden Market of £127m
Total dividend for the year increased by 25% to 5.75p per share (2014: 4.6p per share)
Operational highlights
Significant milestones completed across all major projects:
– New Covent Garden Market – unconditional status achieved during H1 and now reflected in the balance sheet. Interim flower market works are now underway, marking a significant step towards securing vacant possession of the 10-acre Nine Elms Square site
– Longbridge, Birmingham – phase 2 of the Town Centre complete with Marks & Spencer’s 150,000 sq ft new flagship store now trading along with other national retailers
– Bay Campus, Swansea University – new Campus opened in September 2015, welcoming 917 students. Phase 2 opened in January 2016 and Phase 3 to open in 2017
Commercial property development pipeline continues to deliver strong flow of profits
Continued growth in residential development profits
Well positioned for continued growth
Supportive investor market anticipated in 2016 for disposal of mature assets
Expect steady demand for our residential land with continued growth from St. Modwen Homes
Continue to replenish 1.6m sq ft commercial development pipeline with new opportunities from existing land bank and through acquisitions
Positive outlook for continued NAV growth over the next 12 months
*includes £127.4m being the Group share of the gain from initial recognition of New Covent Garden Market
Bill Oliver, Chief Executive of St. Modwen, commented:
“It is extremely pleasing to achieve record profits and growth from a year of excellent delivery across all areas of the portfolio, by type and geography.
“During the year, significant momentum has been created in the Company as a result of us continually restocking our pipeline of residential and commercial development with new opportunities sourced from our existing land bank as well as through new acquisitions.
“In 2016, a year which marks 30 years of St. Modwen’s status as a publicly listed company, we anticipate the creation of further value for our shareholders as we continue to invest in and regenerate areas nationwide.”
Rupert Joseland, South Wales regional director for St. Modwen added:
“2015 has been a standout year for the South Wales region. The first phase of academic facilities and student accommodation for the £450m Bay Campus for Swansea University opened to thousands of new students in September. Activity across our other flagship sites, Coed Darcy, Baglan and Glan Llyn, is also progressing well as we continue to realise our long-term vision to deliver around 7m sq ft of employment space and 8,000 new homes for the region over the next 20 years.
“The Bay Campus is a long-term project with the second phase having opened in January 2016 and the third phase due to complete in autumn 2017, at which point this new Campus accommodation will house 2,000 new students. Our newly created ‘St. Modwen Student Living’ business has been established specifically to look after the student rooms and associated facilities as well as manage the income generated. To date, our work on the Bay Campus has delivered a positive local impact with 170 contracts awarded within Wales, almost 7,000 jobs and 4,000 weeks of training and skills provided and over the project lifetime and beyond is anticipated to create over 10,000 jobs.
“In other developments, we have recently achieved planning consent to build up to 300 new homes at the Hendrefoilan Student Village in Swansea with work starting on site this summer. As well as providing a significant contribution to the City and County of Swansea’s housing land supply, this new development will also allow Swansea University, the former owner, to reinvest in its other assets throughout the City, notably at its existing Singleton Campus.
“Elsewhere, our £1.2bn development at Coed Darcy is progressing with 174 homes under our joint venture with Persimmon already sold and St. Modwen Homes planning to start in site with its first 79 homes later in 2016.
“Further down the M4 in Newport, construction work on a new site access road and the first speculative 50,000 sq ft commercial unit are nearing completion within the 100 acre Celtic Business Park at our Glan Llyn development. A planning consent has recently been received to build a further two speculative units. Also at Glan Llyn, through our St. Modwen Homes business and under our joint venture with Persimmon, to date we have completed 13 acres of parkland and completed 300 new homes. More recently, we have agreed a land sale to Bellway who will be starting on site with 182 homes in 2016.
“We look forward to 2016 as an opportunity to further enhance our presence in South Wales and to continue to add value to the portfolio.”