Developer St Modwen has revealed annual losses have more than doubled to £101.7 million as tough conditions continued last year.

The Birmingham-based firm revealed the surge in losses, which compared to a £50.7 million loss last year, was principally incurred in the first half of the year, when it was £80.6 million in the red.

However, the company said it has since seen market conditions, and its own performance, has “significantly” improved.

The firm, which is behind the key Longbridge regeneration site in the city, also said a refinancing had been a success, managing to raise £101.6 million net of costs through a placing and share offer.

Chairman Anthony Glossop said: “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.

“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.”

The company told investors it was not recommending a final dividend for the year. “We believe that the funds are currently better used in the operations of the business,” it added.

It also said it had renegotiated and improved banking covenants

The firm said it turned a trading profit of £8.4 million despite the tough economic climate, but that was significantly down on 2008 – when it was also affected by low spending in the construction sector, but still managed to post a trading profit of £19.5 million.