St Modwen slumps to half-year loss
Developer St Modwen has slipped to a half-year loss after seeing operations disrupted by the coronavirus pandemic.
The company has reported a pre-tax loss of £158.1 million for the six months to May 31 2020, compared to a profit of £28.1 million in the same period in 2019.
The group, which has its headquarters in Birmingham, has been building new homes on part of the former Goodyear site in Wolverhampton.
It added that its losses were also due to the revaluation of large, complex sites in Wales.
St Modwen saw revenue slump from £173.2 million to £120.5 million over the same period.
But it said momentum has been rebuilt after the initial disruption of Covid-19 resulting in its operational performance being ahead of initial expectations.
The company's industrial and logistics division also remains on track to deliver 12.9 million sq ft of new space this year while its homes arm built 280 properties in the period, down from 411.
Interim chief executive Rob Hudson said: "Since the start of the Covid-19 pandemic our focus has been on protecting our people and customers and preserving our strong financial position.
"Whilst our results for the half-year reflect the disruption of the crisis, our decisive actions have worked to rebuild the momentum achieved over recent years, with strong demand for industrial/logistics space and new homes.
"Although the wider economic outlook will remain uncertain for some time to come, structural growth trends in these key markets for us remain positive and, to an extent, have even accelerated further.
"With our proven strategy and solid balance sheet, we stand well placed for future growth."
