Watkin Jones (WJG)

Sector:

Household Goods

Index:

FTSE AIM 100

41.50p
   
  • Change Today:
      0.100p
  • 52 Week High: 98.80
  • 52 Week Low: 32.20
  • Currency: UK Pounds
  • Shares Issued: 256.65m
  • Volume: 230,225
  • Market Cap: £106.51m

Watkin Jones confident in second half, sells student portfolio

By Josh White

Date: Tuesday 17 May 2022

LONDON (ShareCast) - (Sharecast News) - Residential developer and housebuilder Watkin Jones reported an 8.2% increase in first-half revenue on Tuesday, to £193m, amid "strengthening demand" from institutional investors.
The AIM-traded firm said its underlying operating profit fell 49.8%, however, to £14.6m for the six months ended 31 March, as expected.

It said the decline was due to a higher proportion of lower-margin land sales, and the timing impact of the planned portfolio sale of three purpose-built student accommodation (PBSA) schemes.

Full-year underlying profit performance was expected to be in line with expectations.

Watkin Jones' pipeline stood at a record £2bn, of which £0.6bn was already forward-sold, giving the board "clear visibility" of revenue and earnings growth in future years.

The company said that, in response to the new Building Safety Act and following a review of all buildings over 11 metres in height that it had developed in the last three decades, it recognised an exceptional charge of £28m for the potential costs of remediation work, which it expected would be incurred over up to seven years.

Adjusted net cash totalled £26.8m at the end of the period, which the directors said showed "good liquidity" after high levels of growth investment, which would deliver forward sales in the second half and beyond.

The board declared an interim dividend of 2.9p, up 11.5% year-on-year, reflecting the firm's strengthening development pipeline and expected strong profits in the second half.

On the operational front, Watkin Jones said it had 15 current developments on track, adding that it was "proactively" managing inflationary increases for both asset values and build costs, ensuring its margins were being maintained.

A total of 22,155 beds were being managed under the company's 'Fresh' student accommodation brand, up 10% year-on-year, with bookings "well advanced" for the next academic year.

Its "affordable-led" homes business was gaining traction, with the pipeline building from site acquisitions.

Watkin Jones also announced the sale of a PBSA portfolio to EQT on Tuesday, consisting of three prime student developments along with two operational properties.

The sale would make a profit contribution of £20m to the full-year results, with all properties to be managed by Fresh.

"We are continuing to build on the positive momentum from the second half of last year and have demonstrated operational resilience through the strength of our business model," said chief executive officer Richard Simpson.

"The sale today of a major portfolio of PBSA schemes to EQT, a new institutional investor to the sector, with ongoing management provided by our Fresh business, underlines the attraction of our end-to-end offer for institutional capital targeting UK residential for rent.

"Our proactive management of build costs and sales values has ensured that our overall development margins are maintained, and we are confident going into the second half."

At 1231 BST, shares in Watkin Jones were up 2.06% at 235.75p.

Reporting by Josh White at Sharecast.com.

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Watkin Jones Market Data

Currency UK Pounds
Share Price 41.50p
Change Today 0.100p
% Change 0.24 %
52 Week High 98.80
52 Week Low 32.20
Volume 230,225
Shares Issued 256.65m
Market Cap £106.51m

Watkin Jones Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
53.32% above the market average53.32% above the market average53.32% above the market average53.32% above the market average53.32% above the market average
75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average
Price Trend
57.26% below the market average57.26% below the market average57.26% below the market average57.26% below the market average57.26% below the market average
76.92% below the sector average76.92% below the sector average76.92% below the sector average76.92% below the sector average76.92% below the sector average
Income
10.35% above the market average10.35% above the market average10.35% above the market average10.35% above the market average10.35% above the market average
15.79% above the sector average15.79% above the sector average15.79% above the sector average15.79% above the sector average15.79% above the sector average
Growth
77.59% below the market average77.59% below the market average77.59% below the market average77.59% below the market average77.59% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 3
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Watkin Jones Dividends

  Latest Previous
  Interim Final
Ex-Div 08-Jun-23 02-Feb-23
Paid 30-Jun-23 02-Mar-23
Amount 1.40p 4.50p

Trades for 28-Mar-2024

Time Volume / Share Price
12:23 1,000 @ 41.50p
12:23 164 @ 41.60p
12:23 455 @ 41.60p
12:23 2,144 @ 41.75p
12:09 6,510 @ 41.96p

Watkin Jones Key Personnel

Chair Alan Giddins
CFO Sarah Sergeant

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