Insider Media Limited

St Modwen has recorded a 34 per cent increase in profits and is confident of more good results in 2012.

Commercial developments so far this year are already set to bring in more than £15m profit.

The Birmingham-based regeneration specialist's "strong" figures for the year to 30 November 2011 are the result of a resilient rental income stream from its assets, consistent development profits and a record of adding value to its portfolio through asset management and planning initiatives, it said.

Profit before tax jumped to £50.4m compared with £37.5m in 2010.

St Modwen chief executive Bill Oliver said: "We have had a very successful year despite the challenges posed by the market conditions, significantly growing profits and completing transactions across the portfolio, and we have the foundations in place to deliver very good results in 2012.

"Our commercial developments in progress together with our active housebuilding sites will deliver property profits to underpin our results for 2012 and beyond. We can also see clear opportunities to add value to our assets through the planning process and our active management of our income producing portfolio is producing a resilient income stream."

The company said it had a substantial future pipeline in place with planning recognition for the creation of a new campus for Swansea University; regeneration of a shopping centre in London; and an 80,000 sq ft foodstore plus 50,000 sq ft of further retail in Liverpool..

Net debt in 2011 increased from £315m to £347m as the business invested in developments in progress, but gearing levels remain similar to the end of 2010 at 73 per cent.

During the year the group realised £95m from asset disposals and spent £96m on acquisitions and capital expenditure as it continued its strategy of recycling money into its portfolio.

Jones Lang LaSalle, St Modwen's residential property valuer, assessed that the company's work added £26m of value to its residential portfolio during the year. The properties where these gains were made include: Long Marston in Warwickshire with outline planning consent secured for the development of up to 500 homes; and Longbridge in Birmingham with detailed planning applications submitted for further development of 229 homes in addition to the 113 homes already under construction.