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Business & Economy

Developer St Modwen upbeat as it hails “deep pipeline of opportunities”

A developer behind the regeneration of a North East town centre says it is focused on growth after a shift back to core areas delivered a “deep pipeline of opportunities.”

St Modwen says its renewed emphasis on industrial and logistics, housebuilding and regeneration projects leaves it well placed to strengthen its market presence.

The company, known for previously buying Billingham town centre in a £14.25 million deal, last year sold retail and other non-core assets to concentrate on its main three operational areas.

According to latest figures, bosses say its industrial and residential divisions have benefited from increased work, which has remained strong despite ongoing economic uncertainty.

The update was revealed today (Tuesday, July 2) during the announcement of St Modwen’s half-year financial results to May 31, which showed profit in the period had increased to £23.1 million from £20.8 million.

Adjusted EPRA earnings were also up, from £13.9 million to £16.2 million.

Mark Allan, chief executive, said: “We have had a positive first half of 2019 and our expectations for the full year remain unchanged.

“Following our significant portfolio repositioning last year through the sale of retail and other non-core assets, our focus has now shifted to growth, building on the substantial opportunities we have in our existing portfolio.

“This is reflected in a further increase in housebuilding volumes and industrial and logistics development activity, where the structural growth drivers remain positive despite the ongoing economic uncertainty.

“We continue to expect the delivery of this strategy to drive a meaningful improvement in return on capital and earnings over time.”

St Modwen bought Billingham town centre in 2014 with the promise of overhauling shops, leisure and business sites, and has since welcomed new retailers to its outlets.

The business is also known for the Faverdale 58 project, in Darlington, which it previously said has the potential to provide 60-acres of space for distribution and warehousing companies.