REG - Watkin Jones plc - HY24 Trading Update

Watkin JonesAnnouncement

23/04/2024 07:00

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RNS Number : 5868L  Watkin Jones plc  23 April 2024

     23 April 2024

 

Watkin Jones plc

(the 'Group')

 

H1-2024 Trading Update

 

The Group provides the following trading update for the half year ended 31
March 2024 (the 'period' or 'H1-2024').

 

·    As expected, H1-2024 performance has been driven substantially by the
Group's contractually secure forward sold developments, where project margins
at c.10% have been in line with guidance provided at the FY23 results.  As
announced on 7 March 2024, the Group also completed the forward sale of a 260
bed PBSA scheme in Bristol in the period.

 

·    The underlying operational residential for rent market continues to
perform well, with both strong tenant demand and rental growth in our core
PBSA and BTR sectors.  Alongside this we are seeing the wider real estate
investment market and appetite for forward funds continuing to recover
gradually, off a low base.

 

·    We currently have one scheme under offer and are actively marketing
further schemes.  As previously guided, we continue to expect performance to
be significantly H2 weighted, reflecting the timing of forward sales targeted
to be completed this year.

 

·    We have also been proactive in the land market in the period,
securing two further PBSA sites totalling c. 1,500 beds for future delivery,
subject to planning.

 

·    We continue to focus on the delivery of our building safety
rectification obligations and have completed works on three buildings in the
period with cash spend in line with expectations.  As previously reported,
there remains significant uncertainty in this area across the sector and, as
for many other participants in our industry, assets in scope and the scope and
cost of works continue to evolve.  Based on developments in the period to
date, our provision remains unchanged and we will continue to monitor this as
discussions with building owners and building investigations continue.

 

·    As at 31 March 2024 the Group had gross and net cash of c.£67m
(H1-2023: £83m) and c.£44m (H1-2023: £45m), respectively.

 

Notice of H1-2024 Results

 

The Group's H1-2024  Results will be announced on Tuesday 21 May 2024.
 There will be a pre-recorded audiocast of the H1-2024 Results presentation
available to view on the Group's website (www.watkinjonesplc.com
(http://www.watkinjonesplc.com) ) from 7am (BST) on the day of the
announcement.  At 11am (BST), there will be a live 30-minute Q&A webcast
for sell-side analysts, hosted by Alex Pease (CEO) and Sarah Sergeant (CFO).
 Those analysts wishing to join and receive dial in details should register
their interest via watkinjones@buchanan.uk.com
(mailto:watkinjones@buchanan.uk.com) .

 

- Ends -

 

For further information:

 Watkin Jones plc
 Alex Pease, Chief Executive Officer      Tel: +44 (0) 20 3617 4453
 Sarah Sergeant, Chief Financial Officer  www.watkinjonesplc.com (http://www.watkinjonesplc.com/)

 Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker)                 Tel: +44 (0) 20 7418 8900
 Mike Bell / Ed Allsopp                                                     www.peelhunt.com (http://www.peelhunt.com/)

 Jefferies (Joint Corporate Broker)                                         Tel: +44 (0) 20 7029 8000
 James Umbers/David Sheehan / Paul Bundred                                  www.jefferies.com (http://www.jefferies.com/)

 

Media enquiries:

 Buchanan
 Henry Harrison-Topham / Steph Whitmore  Tel: +44 (0) 20 7466 5000
 watkinjones@buchanan.uk.com             www.buchanancomms.co.uk (//www.buchanancomms.co.uk)  .

 

 

Notes to Editors

 

Watkin Jones is the UK's leading developer and manager of residential for
rent, with a focus on the build to rent, student accommodation and affordable
housing sectors. The Group has strong relationships with institutional
investors, and a reputation for successful, on-time-delivery of high quality
developments.  Since 1999, Watkin Jones has delivered 48,000 student beds
across 143 sites, making it a key player and leader in the UK purpose-built
student accommodation market, and is increasingly expanding its operations
into the build to rent sector.  In addition, Fresh, the Group's specialist
accommodation management business, manages over 22,000 student beds and build
to rent apartments on behalf of its institutional clients.  Watkin Jones has
also been responsible for over 80 residential developments, ranging from
starter homes to executive housing and apartments.

 

The Group's competitive advantage lies in its experienced management team and
capital-light business model, which enables it to offer an end-to-end solution
for investors, delivered entirely in-house with minimal reliance on third
parties, across the entire life cycle of an asset.

 

Watkin Jones was admitted to trading on AIM in March 2016 with the ticker
WJG.L.  For additional information please visit www.watkinjonesplc.com
(http://www.watkinjonesplc.com/)

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