St Modwen H1 earnings 'unsurprisingly' hit by Covid-19

Property investment and development group St Modwen Properties warned on Wednesday that it was on track to record a substantial fall in first-half earnings, "unsurprisingly" due to impacts stemming from the Covid-19 pandemic.

St Modwen expects adjusted EPRA earnings for the six months ending 30 June to tumble from £16.2m to roughly £4m-£5m as the coronavirus outbreak led to a reduction in housebuilding profits and retail rents in the first half of 2020.

The FTSE 250-listed firm also anticipates a decline in the valuation of its residual retail assets and surplus residential land.

Despite taking a hit as a result of the pandemic, St Modwen said it has now been able to restart activity on its sites safely and strengthen its liquidity and financial position, but cautioned that a delay in production meant that completed unit sales for the half were down 32% year-on-year at 32%.

St Modwen also warned the current economic disruption would inevitably have an impact on its financial results in the short-term as the pandemic continues to cause "significant social and economic challenges".

Interim chief executive Rob Hudson said: "Whilst near-term visibility remains low, recent trading has been ahead of our expectations and the long term structural growth drivers in our two key markets, residential and industrial/logistics, remain positive, so our strong financial base leaves us well positioned for the future."

As of 0825 BST, St Modwen shares were up 1.35% at 357.76p.