St Modwen chief executive Bill Oliver is to step down at the end of November after 13 years at the helm.
Oliver, who has been on the board since 2000, said he had the opportunity to leave the company in a strong position following a 91% increase in profit in its full-year results announced at the same time (see below).
He said that as he approached the age of 60 he felt the time was right to “regroup” and take time off. During his time as chief executive Oliver changed St Modwen’s business model from landbanking and strategic land to development and property rental.
He navigated the company through the financial crisis, having to instigate a £102m rights issue in 2009.
Oliver is expected to still be leading the company when St Modwen puts the first and main phase of its New Covent Garden Market, SW8, scheme up for sale, which it is planning to do towards the end of this year.
Oliver said St Modwen would consider a joint venture or development, but that the primary consideration would be selling the asset. He said a £600m plot of land on a £900m balance sheet would be too large for the developer. It has already attracted interest from sovereign wealth funds.
“Even for St Modwen punching above its weight, it’s a bit aspirational, but having a part interest in that is a possibility,” he said.
Bill Oliver Q&A
What prompted the decision?
It’s a lifestyle thing. I’m 60 this year, I’ve had 17 years on the board and 13 years as chief executive, the company is a in a great position, we’ve got a new finance officer and it seemed a sensible time to hand over the baton.
What do you intend to do?
Just have some time off and regroup. I have some mixed feelings, having presented the results. It’s a little bit sad in some respects but I have 10 months in which to create a bit of mayhem yet.
What type of person should replace you?
Oh, someone exactly like me – but I suspect the board won’t make that mistake!
Will that person need more experience in the land management side of the business or development?
St Modwen is a broad church, so you are going to need somebody with property and PLC experience, but I think part of the attraction will be in the variety. We have a model that allows us to take on projects such as car plants and flower markets, and that is where the excitement is.
Many experienced figures in the sector are moving on.
Do you all know something we don’t?
I think the industry is wide enough for one or two of us to depart, and some of them aren’t really departing. I don’t think there is anything significant in that. I do think it would have been wrong to consider leaving if we had any sort of crisis or overhang from the 2011 period.
What was your proudest moment?
The day we moved into our newly built head office in Longbridge, Birmingham, was easily one of my proudest moments. Sitting on a vast, once-defunct site, Longbridge soon became a prime example of our role in major regeneration, serving as a key driver of economic growth in the area. By moving there, we quite literally lived our own values.
St Modwen: results for the year to 30 November 2015
| Item | Result | % change |
|---|---|---|
| Pretax profit | £258.4m | 91 |
| NAV | 413.5p | 27 |
| Property valuation | £1.7bn | 13.3 |
| Cost of borrowing | 3.9% | -0.9pp |
St Modwen’s profits were boosted in the first half of the year when the New Covent Garden Market, SW8, scheme (pictured), achieved unconditional planning and added £127m to the property portfolio.
The company also began its second phase of work on a former car plant at Longbridge, in Birmingham, adding £3.2m of income to the balance sheet.
The expansion of the student homes business in Swansea saw it deliver 917 rooms in the city; 2,000 more rooms are due to complete by September 2017.
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