St. Modwen pre-tax profit nosedived to £30 million in H1 2015 from £206 million in 2016. The 85 per cent drop has been partly attributed to a one-off £13 million impact from the increase in Stamp Duty Land Tax (SDLT) and a £21 million impact from the reduction in the NCGM valuation.
Trading profits were at £34 million, a slight drop from the £35 million reported for the same period in 2015. Interim dividend marginally increased to 1.94p per share from 1.9p in H1 2015.
Bill Oliver, Chief Executive, St. Modwen said, “Following the Referendum held on 23 June 2016, we are now operating in a period of uncertainty in relation to many factors that impact the property market. Whilst it is too early to accurately predict how the UK property market will respond, until we have more clarity we believe it is appropriate to take a more cautious approach to the delivery of our development strategy.”