- St. Modwen Properties has reported strong growth in its St. Modwen Homes and industrial and logistics business units during 2019, in a trading update for the period to 30 November.

St. Modwen Homes' sales volumes increased 25% to 1,060 units, which is at the top end of its target to grow volumes by up to 25% per annum.

Operating margins improved largely in line with the company's plans and it now expects to make further progress towards its 16% to 17% medium-term target during 2020.

The company said that its 'substantial' industrial and logistics pipeline continued to drive strong growth and its committed pipeline stands at 1.6m sq ft, up from 1.5m sq ft this time last year.

St. Modwen Properties completed 0.9m sq ft of space during the year, of which it will retain 99%, with a further 0.5m sq ft of completions due early in the new year.

In its strategic land and regeneration business unit, it agreed the disposal of £30m of residential land during the period and confirmed it is in 'advanced legal discussions' on the sale of more than 1,500 plots across its two large sites in South Wales for over £50m.

Chief executive Mark Allan said: 'Following the major repositioning of our business through the successful disposal of over 40% of our assets in the preceding 18 months, our focus in 2019 has been firmly on delivering the deep pipeline of opportunities in our existing portfolio.

'We have made strong progress on this during the year in each of our three business units and, supported by our solid capital base, we are confident that the continued delivery on this strategy will drive a meaningful improvement in return on capital and earnings over time.'

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