Property giant St Modwen has hailed ‘strong operational results’ – despite slipping to a pre-tax loss of almost £140m.
Its latest results for the year end November 30, 2020, revealed the company reported a loss of £139.4m – compared to a £58.9m profit in 2019.
The Birmingham-headquartered company also saw revenue fall to £342.1m down from £429.9 million the previous year.
St Modwen’s chief executive officer Sarwjit Sambhi said the business was ‘significantly affected’ by the Covid-19 crisis, despite a marked improvement in the second half of the year.
But over the next 12 months the company has a ‘clear strategy’ – focusing on the two key sectors of logistics and housebuilding – which is expected to ‘materially improve’ the company’s recurring income and return on capital.
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Mr Sambhi added: “St. Modwen delivered strong operational results in 2020 under extraordinary circumstances. Thank you to all our colleagues for their outstanding efforts and for overcoming the challenges posed by the pandemic.
“Our strategy is focused on two sectors, logistics and housebuilding, where structural demand is growing, acknowledging that the economic outlook is uncertain. These sectors make up 78 per cent of our portfolio today and will represent over 90 per cent within three years. In both, momentum is strong, and we have an attractive pipeline to accelerate growth.”
St Modwen is involved in a host of regeneration schemes across the West Midlands, particularly the £1 billion project to create a new town centre in Longbridge, south Birmingham, on land previously occupied by MG Rover factories.
So far, the work has already welcomed a new Sainsbury’s supermarket, hotel, retail park and hundreds of houses with future plans including a green square and new office accommodation.