'Actions of a sensible company'

PUBLISHED: 16:03 14 May 2008 | UPDATED: 21:16 26 October 2009

A FINANCIAL expert expelled fears that developers St Modwen were in economic turmoil. We spoke to the City specialist after revealing the company had blamed the global credit crunch for putting the Hatfield town centre revamp on indefinite hold. He said a

A FINANCIAL expert expelled fears that developers St Modwen were in economic turmoil.

We spoke to the City specialist after revealing the company had blamed the global credit crunch for putting the Hatfield town centre revamp on indefinite hold.

He said although the price of shares in St Modwen had declined over the past two years, the company was still financially stable.

In fact, in the last 12 months it had actually out-performed its index by one per cent.

In April last year shares were valued at a high of 730p before plummeting to 363p in November.

Value has since risen by a pound.

St Modwen still has a strong market capitalisation (the equity of the company) valued at £526m.

Our expert said the current economic climate was causing many developments to be deferred - and that St Modwen's actions were that of a "sensible company" to ensure its long-term survival.

He added: "However, given the credit crunch and the downturn in both commercial and residential property which will continue for some time, things are not going to be easy for the company over the next couple of years. It is this which will be reflected in the current share price.


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