Watkin Jones (WJG)

Sector:

Household Goods

Index:

FTSE AIM 100

41.60p
   
  • Change Today:
      0.20p
  • 52 Week High: 98.80
  • 52 Week Low: 32.20
  • Currency: UK Pounds
  • Shares Issued: 256.65m
  • Volume: 378,914
  • Market Cap: £106.77m

Revenue rises, profits fall in first half for Watkin Jones

By Josh White

Date: Wednesday 13 Apr 2022

LONDON (ShareCast) - (Sharecast News) - Watkin Jones reported "sustained strong delivery" across its in-build schemes and pipeline development in a first-half update on Wednesday, giving its board confidence in the group's full year performance.

The AIM-traded firm said that as expected, revenue for the six months ended 31 March was ahead of the same period last year.

Gross profit and operating profit, however, were expected to be below last year, reflecting "specific" 2022 financial year factors, Watkin Jones explained.

It said there was a higher proportion of land sales in the period, which generated a lower margin than the ensuing development activity.

The group completed three land sales in its first half with revenue of £55m, compared to nil a year ago.

Watkin Jones also put the fall in profits down to the planned portfolio sale of several purpose-built student accommodation (PBSA) assets, which was under offer and expected to close in the second half.

The board said the business was still "proactively managing" inflationary price rises in the period for both asset values and construction costs.

That involved a number of "open book" discussions with purchasers during the sales process.

While in some cases that had lengthened transaction timeframes, to date the firm said it had been able to successfully maintain its margins.

The business saw a rising level of investor demand and liquidity for residential-for-rent assets in the period, and the group said it had another "significant" PBSA asset currently under offer for sale.

There were a number of further assets at earlier stages of marketing, and which were said to be generating strong interest.

Watkin Jones said its secured development pipeline stood at £1.8bn at period end, up from £1.4bn year-on-year.

It said it had "good liquidity", with gross cash of £45m - down from £80m - and net cash of £27m - down from £31m - at the half-year end.

The company said it was awaiting the government's detailed plans on initiatives relating to historic fire safety issues.

Its board said it believed that residential leaseholders should not bear the cost of cladding and critical fire safety defect remediation, and would update investors once government proposals were published and fully evaluated.

"We have continued to build on the positive momentum from the second half of last year," said chief executive officer Richard Simpson.

"We are experiencing very strong investor demand across the markets in which we operate and are well progressed with a number of significant forward sales.

"This, together with our current momentum, gives confidence in delivery of our full year expectations."

Watkin Jones said it would release its interim results for the six months ended 31 March on 17 May.

At 1005 BST, shares in Watkin Jones were down 0.31% at 252.71p.

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Watkin Jones Market Data

Currency UK Pounds
Share Price 41.60p
Change Today 0.20p
% Change 0.48 %
52 Week High 98.80
52 Week Low 32.20
Volume 378,914
Shares Issued 256.65m
Market Cap £106.77m

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
15:17 8 @ 41.80p
15:17 1,024 @ 41.60p
15:06 4,197 @ 41.70p
15:05 497 @ 41.85p
15:05 496 @ 41.80p

Watkin Jones Key Personnel

Chair Alan Giddins
CFO Sarah Sergeant

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