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St. Modwen Properties Plc, the property regeneration specialist, today posted a wider fiscal 2009 pretax loss of £97.7 million as property values continued to feel the strain, but said it was confident of returning to profit in 2010 as markets improve. For the year ended Nov. 30, St. Modwen posted a pretax loss of £97.7 million compared with a pretax loss of £30.5 million in the same period a year earlier. The loss was largely due to revaluations and was mainly incurred in the first half of the year (16%), the firm said, adding that market conditions have "significantly improved" since then, as only 4% of the loss occurred in H2. Revenue fell to £113.7 million from £146.5 million but net debt narrowed to £319 million from £422 million. Anthony Glossop, Chairman, comments: "Property market prospects still remain uncertain. The economy may be slowly emerging from recession, but business confidence remains fragile, with continued pressure on rents and occupancy levels. "However, St Modwen is well prepared for such conditions: our financial position is sound; our business model will increasingly create value; and we are in a good position to seize attractive opportunities to add further to the Hopper. "As yet our portfolio has not seen the resurgence in values experienced in other parts of the property market. But nevertheless I believe that we are now beginning to see important signs of improvement. "I am confident that 2010 will see the company returning to growth in profits and NAV." St Modwen reported property sales of £101million, and a reduced stock of unoccupied completed buildings, though significant voids include the Basingstoke Shopping Centre. What Anthony Glossop describes as "the Hopper" is the land bank, and 2009 was a good year in that respect, as the firm was able to add 705 developable acres of land for the modest sum of £13million. The most significant acquisiton here was the BP portfolio containing 566 developable acres, mostly in South Wales. The firm has not started any new construction project during the year, though it is pressing ahead to complete those which are in progress. Cash management is still a priority and the firm has passed on paying a dividend this year. St. Modwen shares climbed as much as 8.6% this morning on news of the results to 202.6 pence and traded at 190 pence as of 11:17 a.m. in London, valuing the Birmingham-based company at £380.7 million. Looking for commercial property agents, find lettings and investment property in the UK? Visit http://www.ukbusinessproperty.co.uk
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