Simon Clarke’s regeneration specialists St Modwen has taken a bit of a battering as the construction and property markets turn down. But the company remains optimistic for the longer term.
In its six month interim results to May 31, 2008 St Modwen posted a loss for the first time, slipping £20 million into the red at the pre-tax level. This follows a record profit for the previous full year of more than £100 million. Write-downs in book value of the company’s assets was the biggest reason for the fall, and like many companies in the sector, share values have taken a sharp downturn.
However, St Modwen believes its long term prospects remain strong, with several big projects set to underpin its future. Significantly, St Modwen has completed its acquisition from BP of a 1,000 acre former oil refinery at Llandarcy for a 4000 home project.
Simon Clarke, aged 43, is taking an active part in the running of the Quinton-based St Modwen, the company founded by his late father Sir Stan Clarke who died in 2004, following the sale of the family stake in Dunstall-based Northern Racing in 2007.
The Clarke family owns 28.3 per cent of St Modwen, which is involved in many high profile projects, none more so than the £750 million regeneration of the massive Longbridge site. St Modwen remains committed to the project and is taking a long term view.
St, Modwen is also involved in major town centre regeneration projects in Hatfield, Basingstoke and Wythenshawe, and other major developments in Accrington, West Ruislip and Quedgeley in Gloucestershire.
Completed projects by St Modwen include the Premier Inn Hotel at Trentham Gardens, Stoke on Trent, which was sold to Danish company KS Habro for £10 million. It also has an unconditional pre-let of an 80,000 call centre in Stoke for Vodaphone.