LONDON (Alliance News) - St Modwen Properties PLC Monday said it still expects to report pretax profit for the first half of its financial year significantly up on the year-earlier period, after it continued to perform "strongly" over the past two months.
In a statement, the property company said it expects its asset management and added value activities to be reflected positively in half-year valuations, while initial indications point to a rise in market valuations for the first half of the year compared with November 2013, reflecting improvements in the residential and commercial property markets across the UK.
"Momentum continues to build across all of our major projects. In particular, last month, we submitted the planning application for the redevelopment of the 57 acre New Covent Garden Market site in Nine Elms, London. Subject to the receipt of planning consent, development of the new market will commence in 2015," the company said in a trading update.
"Across our income producing portfolio, we are seeing a continued increase in enquiries and occupancy levels remain high, providing further evidence of the returning confidence to the regional commercial property sector," it added.
The first half of St Modwen's financial year ended on May 31. It expects to report full results on July 1.
"As predicted at the full year, we are now witnessing a sustained improvement in the residential and commercial marketplace. Alongside our active programme of adding value through intensive asset management, we continue to secure opportunities across our portfolio to unlock value from our land bank through land sales and by development, thereby taking full advantage of current market conditions," Chief Executive Bill Oliver said in a statement.
"This activity, supported by the ongoing optimism in the commercial and the residential marketplace, points to a positive outlook for St. Modwen, both in terms of profit and future net asset value growth," he added.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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