Insider Media Limited

Regeneration specialist St Modwen said pre-tax profits had soared by 40 per cent in its latest half-year report. The Birmingham-based company said this morning that development profits had also increased to £11.2m – an 11 per cent rise on the same period in 2010.

St Modwen said pre-tax profits had risen from £26.7m to £37.4m for the six months to May 2011.

Chief executive Bill Oliver described the results as "very strong" in a difficult economic climate.

Over the six-month period, property valuations increased by £25m, of which 96 per cent or £24m were achieved through active management.

A 2 per cent increase was also made on net rental income to £17.8m.

Oliver said: "We have achieved very strong results for the first half of the year in markets that continue to present challenges. Even in this market, our skilled regional teams have been able to drive income and valuation gains through active management and progressing sites through the planning process in London and across the UK.

"We are also seeing an increase in demand for developable residential land and we continue to progress our residential development programme both in-house and through joint ventures."

Throughout the six months, vacancy levels remained flat at 12 per cent.

Contracts were signed following the period end to develop a 135,000 sq ft office and production facility for Siemens in Lincoln.

St Modwen added its joint venture with Persimmon was making "strong progress" and said four further developments were expected to commence on site in the next 12 months.

Oliver said: "Our long term focus, track record of delivery, strong asset management skills and ability to secure new projects, either on our own behalf or in joint venture, give us continued confidence in both the results for the current financial year and our future growth."