HOME | IMC UK | Editorial Guidelines | Mission Statement | About Us | Contact | Help | Support Us

SouthCoast Indymedia

St Modwen financial meltdown

Keith Parkins | 24.10.2008 13:44 | Repression | Social Struggles | Birmingham | South Coast

The financial position of St Modwen, The Developer from Hell, has worsened.

St Modwen meltdown
St Modwen meltdown


'We will no longer sell any residential land because of a lack of buyers. We put four or five sites on the market in spring time and found that national house builders were no longer bidding. There is long-term value there and so we won’t sell into a market that isn’t there.' -- St Modwen, July 2008

'The residential land market remains virtually non existent. We do not expect this market to recover for some time, and are planning our business accordingly. ... Cash management and cost control are priorities at this time, and the necessary decisions are being taken to maintain the long-term potential of the business. ... "being very selective in the acquisition opportunities we pursue. ... a number of development agreement opportunities where the initial requirement is to put in our skills rather than cash.' -- St Modwen, October 2008

'Like lots of companies, which have to borrow heavily in order to make speculative investments, St Modwen are feeling the pinch. Their shares have fallen by over 50% in the last year and, as a result, its borrowings of £470 million are about £100 million more than its worth.' -- Fight the Height

Earlier in the year, St Modwen claimed they were not effected by the collapse in the property market. A few weeks later they reported their disastrous half-yearly results: massive wipe down in value of assets, share price halved, big losses.

 http://www.indymedia.org.uk/en/2008/07/403952.html?c=on

Since then, the financial woes of St Modwen has continued to worsen. Their liabilities now exceed their assets, technically they are bankrupt. It will only take one creditor to pull the plug or the banks to pull in their loans and St Modwen will go under.

 http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL159684020081001
 http://www.ft.com/cms/s/0/42671cbc-8f87-11dd-9890-0000779fd18c.html
 http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2008/10/01/st-modwen-warns-its-results-will-be-hit-by-property-slump-65233-21944194/

St Modwen recognise the dire situation they are in and have decided to pull out of development (they had already pulled the plug on Hatfield, having first trashed the town) and instead offer their skills to local councils, ie jump on the consultancy gravy train.

 http://www.whtimes.co.uk/content/whtimes/postbag/story.aspx?brand=WHTOnline&category=Postbag&tBrand=HertsCambsOnline&tCategory=PostbagWHT&itemid=WEED23%20Oct%202008%2012%3A07%3A26%3A063

Anyone who has had experience of St Modwen would question what skills do they have to offer?

They are very good at trashing town centres, destroying green belt, getting into bed with corrupt councils who then promote the St Modwen agenda on their behalf.

Farnborough once had a viable town centre, that is until in collusion with the Rotten Borough of Rushmoor, St Modwen trashed the town centre. At Upton Park, in collusion with the local mayor, St Modwen wish to destroy the century-old Queen's Market. At Walthamstow, St Modwen wish to destroy a Victorian street, along with the many independent traders who trade there. At Bognor Regis on the South Coast, St Modwen wish to destroy the seafront ...

Not surprising then that St Modwen are strongly opposed by local communities wherever they operate.

 http://www.friendsofqueensmarket.org.uk/
 http://fighttheheight.blogspot.com/
 http://www.indymedia.org.uk/en/2008/06/400039.html
 http://www.indymedia.org.uk/en/2004/06/292860.html
 http://www.coombeswood.info/
 http://www.bardcampaign.org/

In Birmingham,St Modwen are at loggerheads with the city council over the Longbridge site, former home of MG Rover.

 http://www.birminghampost.net/news/west-midlands-news/2008/10/22/st-modwen-and-birmingham-city-council-at-stalemate-over-longbridge-homes-65233-22097932/

Even before the credit crunch started to bite and the UK moved into recession, the business model being pushed by St Modwen, retail cum leisure cum yuppie flats was not viable. It was about making a fast buck and had nothing to do with town centre regeneration. The fast buck is no longer there to be made and probably never was.

 http://www.indymedia.org.uk/en/2008/07/403650.html?c=on
 http://www.indymedia.org.uk/en/2008/07/404070.html

Driving out local businesses, to be replaced by High Street retail chains that drain money out of the local economy, is not regeneration, nor is it sustainable development.

 http://www.neweconomics.org/gen/tools_plugging.aspx
 http://www.indymedia.org.uk/en/2008/10/410292.html?c=on

For many the question was how were local councils so easily conned. The next question is will they be conned all over again as St Modwen offers their special skills?

Special thanks to Fight the Height for digging up the latest dirt on St Modwen.

 http://fighttheheight.blogspot.com/2008/10/st-modwen-swallow-credit-crunch.html

Web

 http://www.friendsofqueensmarket.org.uk/
 http://fighttheheight.blogspot.com/
 http://www.coombeswood.info/
 http://www.bardcampaign.org/
 http://www.tlio.org.uk/
 http://www.neweconomics.org.uk/gen/
 http://www.heureka.clara.net/surrey-hants/

Further information and background

Anna Blackaby, St Modwen warns its results will be hit by property slump, Birmingham Post, 1 October 2008
 http://www.birminghampost.net/birmingham-business/birmingham-business-news/other-uk-business/2008/10/01/st-modwen-warns-its-results-will-be-hit-by-property-slump-65233-21944194/

Edward Chadwick, St Modwen and Birmingham City Council at stalemate over Longbridge homes, Birmingham Post, 22 October 2008
 http://www.birminghampost.net/news/west-midlands-news/2008/10/22/st-modwen-and-birmingham-city-council-at-stalemate-over-longbridge-homes-65233-22097932/

Keith Parkins, Curitiba Designing a sustainable city, April 2006
 http://www.heureka.clara.net/gaia/curitiba.htm

Keith Parkins, Collapse of town centre regeneration schemes, Indymedia UK, 14 July 2008
 http://www.indymedia.org.uk/en/2008/07/403650.html?c=on

Keith Parkins, St Modwen financial crisis, Indymedia UK, 17 July 2008
 http://www.indymedia.org.uk/en/2008/07/403952.html?c=on

Keith Parkins, Town centre regeneration schemes, Indymedia UK, 18 July 2008
 http://www.indymedia.org.uk/en/2008/07/404070.html

Keith Parkins, Transitions towns, Indymedia UK, 9 October 2008
 http://www.indymedia.org.uk/en/2008/10/410292.html?c=on

Keith Parkins, Beyond sustainability, to be published
 http://www.heureka.clara.net/gaia/

Keith Parkins, Sustainable living, to be published
 http://www.heureka.clara.net/gaia/

Toby Shelley and Stanley Pignal, St Modwen puts a brave face on gloomy prospects, FT, 1 October 2008
 http://www.ft.com/cms/s/0/42671cbc-8f87-11dd-9890-0000779fd18c.html


St Modwen meltdown
f:\St Modwen Shares

Keith Parkins

Publish

Publish your news

Do you need help with publishing?

-->

Kollektives

Birmingham
Cambridge
Liverpool
London
Oxford
Sheffield
South Coast
Wales
World

Other UK IMCs
Bristol/South West
London
Northern Indymedia
Scotland

South Coast [navigation.actions2016]

South Coast [navigation.actions2015]

South Coast [navigation.actions2014]

NATO 2014

South Coast Actions 2013

G8 2013

South Coast Actions 2012

Workfare

South Coast Actions 2011

2011 Census Resistance
August Riots
Dale Farm
J30 Strike
Occupy Everywhere

South Coast Actions 2010

Flotilla to Gaza
Mayday 2010
Tar Sands

South Coast Actions 2009

COP15 Climate Summit 2009
G20 London Summit
Guantánamo
Indymedia Server Seizure
University Occupations for Gaza

South Coast Actions 2008

2008 Days Of Action For Autonomous Spaces
Campaign against Carmel-Agrexco
Climate Camp 2008
G8 Japan 2008
SHAC
Smash EDO
Stop Sequani Animal Testing
Stop the BNP's Red White and Blue festival

South Coast Actions 2007

Climate Camp 2007
DSEi 2007
G8 Germany 2007
Mayday 2007
No Border Camp 2007

South Coast Actions 2006

April 2006 No Borders Days of Action
Art and Activism Caravan 2006
Climate Camp 2006
Faslane
French CPE uprising 2006
G8 Russia 2006
Lebanon War 2006
March 18 Anti War Protest
Mayday 2006
Oaxaca Uprising
Refugee Week 2006
Rossport Solidarity
SOCPA
Transnational Day of Action Against Migration Controls
WSF 2006

South Coast Actions 2005

DSEi 2005
G8 2005
WTO Hong Kong 2005

South Coast Actions 2004

European Social Forum
FBI Server Seizure
May Day 2004
Venezuela

South Coast Actions 2003

Bush 2003
DSEi 2003
Evian G8
May Day 2003
No War F15
Saloniki Prisoner Support
Thessaloniki EU
WSIS 2003

IMCs


www.indymedia.org

Projects
print
radio
satellite tv
video

Africa

Europe
antwerpen
armenia
athens
austria
barcelona
belarus
belgium
belgrade
brussels
bulgaria
calabria
croatia
cyprus
emilia-romagna
estrecho / madiaq
galiza
germany
grenoble
hungary
ireland
istanbul
italy
la plana
liege
liguria
lille
linksunten
lombardia
madrid
malta
marseille
nantes
napoli
netherlands
northern england
nottingham imc
paris/île-de-france
patras
piemonte
poland
portugal
roma
romania
russia
sardegna
scotland
sverige
switzerland
torun
toscana
ukraine
united kingdom
valencia

Latin America
argentina
bolivia
chiapas
chile
chile sur
cmi brasil
cmi sucre
colombia
ecuador
mexico
peru
puerto rico
qollasuyu
rosario
santiago
tijuana
uruguay
valparaiso
venezuela

Oceania
aotearoa
brisbane
burma
darwin
jakarta
manila
melbourne
perth
qc
sydney

South Asia
india


United States
arizona
arkansas
asheville
atlanta
Austin
binghamton
boston
buffalo
chicago
cleveland
colorado
columbus
dc
hawaii
houston
hudson mohawk
kansas city
la
madison
maine
miami
michigan
milwaukee
minneapolis/st. paul
new hampshire
new jersey
new mexico
new orleans
north carolina
north texas
nyc
oklahoma
philadelphia
pittsburgh
portland
richmond
rochester
rogue valley
saint louis
san diego
san francisco
san francisco bay area
santa barbara
santa cruz, ca
sarasota
seattle
tampa bay
united states
urbana-champaign
vermont
western mass
worcester

West Asia
Armenia
Beirut
Israel
Palestine

Topics
biotech

Process
fbi/legal updates
mailing lists
process & imc docs
tech