Simon Clarke’s St Modwen regeneration company won the Commercial Developer of the Year award at the recent commercial property awards. It was an accolade which marked a good year for the company which has returned to steady profits after taking a battering in the construction and property market downturn.
In the year to November 2011 St Modwen recorded a 34 per cent increase in profits from £37.5 million to £50.4 million, and is confident of continuing the trend. For the first half of the year St Modwen revealed pre-tax profits of £24.9 million.
The company realised £95 million from asset disposals and spent £96 million on acquisitions and capital expenditure.
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It raised £80 million by entering the bonds market, reducing its £350 million debt pile. The bonds pay a fixed rate of 6.25 per cent, payable twice a year.
Falling land and property values took their toll on the Clarke family’s 28.3 per cent stake. But its recovery values the stake at around £34 million.
And the company remains upbeat about the future, with a strategic focus on the residential sector, particularly in the high value South East. Other sectors are performing well, though, and the company was selected for the £2 billion regeneration of New Covent Garden Market. It also has retail projects in Liverpool and the creation of a new campus for Swansea University.
St Modwen is on site for the first phase of the £70 million Longbridge town centre scheme which includes a Sainsbury’s superstore, a Premier Inn, plus shops and restaurants.
It is also active in Hednesford where a £50 million shopping centre – the Victoria Shopping Park – is being created, consisting of an 85,000 sq ft Tesco and other shops.
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And it has been given the green light to develop a new neighbourhood on 22 acres of vacant land in Newport, Shropshire to include 215 homes, public open spaces, a children’s play area and sports facilities.
Simon Clarke, aged 47, takes an active part in the running of Quinton-based St Modwen, the company founded by his late father Sir Stan Clarke who died in 2004, following the sale of the family stake in Dunstall-based Northern Racing in 2007.
The high profile Longbridge project - a 15-year £2 billion regeneration of the massive site formerly occupied by MG Rover - will see the transformation of the 468-acre site with a new Bournville College, 2000 new homes, new office space and an Innovation Centre which has already attracted many occupiers.
Simon Clarke lives on his Staffordshire estate at Dunstall.