SMP.L Share News (SMP)

(Alliance News) - St Modwen Properties PLC on Tuesday reported a "positive" first half, with good progress being made across all business lines.

Pretax profit for the six months to May 31 was GBP28.1 million, up 8.5% on the year prior, with revenue GBP173.2 million, falling 19% on the year prior.

At the end of May, EPRA net asset value was 492.5 pence per share, 1.8% higher from the end of November. Statutory NAV per share was 476.4p, up 1.3% on November.

St Modwen, a member of the FTSE 250 index, has increased its interim dividend by 16%, returning 3.6p to shareholders per share, which it said reflects "solid" earnings growth.

Chief Executive Mark Allan commented: "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 meaningful improvement in return on capital and earnings over time."

St Modwen's total accounting return for the half was 2.2%, from 2.0% year-on-year, while the see-through loan-to-value rose to 20.7% from 16.9% due to the reinvestment of disposal proceeds.

St Modwen has made a number of sales recently, including over half of the retail portfolio as well as numerous smaller assets for around GBP225 million.

The Industrial & Logistics business has done well, St Modwen said, with customer interest strong. St Modwen Homes has likewise experienced good demand, with unit sales rising 36% year-on-year to 411.

St Modwen, looking ahead, does not expect any major impact from political uncertainty in the UK, and government policy remains supportive of housebuilding.

St Modwen shares were 0.7% higher early on Tuesday morning in London at 435.68p each.