Developer St Modwen has returned back to profit after three years of struggling against tough conditions.
Birmingham-based St Modwen (SMP) has reported a pre-tax profit of £37.5 million, compared to a loss of £119.4 million in 2009.
The company said property profits increased from £7.6 million to £21.9 million and its rent roll rose by five per cent to £46 million.
Chairman Anthony Glossop said: “As we look forward, our financial position is sound; our business model will increasingly create value; our valuations are prudent and our recurring income is robust.
“We are also in a good position to seize attractive opportunities to add further to the hopper, our regional teams continue to find opportunities to generate value and we are seeing a gradual recovery of liquidity in our key markets.”
The company benefitted from a stronger property market, after reporting valuation gains of £23 million – following on from a loss of £122 million last year.
Chief exective Bill Oliver said: “Looking ahead, we are confident that St Modwen’s long-established strategy will once again give us the opportunity to provide sector-leading returns to shareholders.
“We have a strong balance sheet and a landbank that is full of latent value. Our development pipeline for 2011 and beyond is strengthening and a number of significant schemes are being marshalled for delivery in future years.
“Our asset management capability is proving invaluable in maintaining occupancy and rent levels, and we are confident that we will be able to continue with the positive progress in this area that we have demonstrated in the past two years.
“As a result, we believe that we are well positioned to deliver profit and net asset value growth in 2011, despite the ongoing uncertain market conditions.”