St Modwen has said it is curtailing development and reducing borrowing levels after reporting a loss for the six months to May.

The regeneration group reported a pre-tax loss of £20m, compared with a profit of £65.1m in the same period last year, because of a net writedown of £31.8m due to the fall in the value of its commercial and residential assets.

Net asset value per share fell 4% to 371p, down from 387p at the full year.

There was a £37.7m net writedown in the value of its residential land bank, leaving the book value of the group’s residential sites only £14m above historical cost. Its commercial portfolio lost about £16.9m in value in the period.

These writedowns were partly offset by gains of £27m from asset management activities through new and improved lettings, as well as activities such as obtaining land planning consents.

Revenue was £70.8m, compared with £47.8m this time last year, and the interim dividend is maintained at 3.9p.

Financial Times, Daily Telegraph