UK's Watkin Jones H1 revenue falls 22%, operating profit steady
UK's Watkin Jones H1 revenue falls 22%, operating profit steady
Overview
UK residential developer's H1 revenue fell 22% yr/yr amid lower transactional activity
Adjusted basic EPS for H1 dropped to 0.01p from 0.05p yr/yr
Company maintained operating profit at £0.4 mln, citing strong construction delivery and cost control
Outlook
Watkin Jones says market for asset sales remains challenging but schemes are attracting interest
Company has c.£1.3 bln secured pipeline, including c.£300 mln forward sold revenue
Result Drivers
LOWER TRANSACTIONAL ACTIVITY - Co said revenue decline was mainly due to a sustained lower level of transactional activity
SEGMENT MIX - Build to Rent revenue fell 42% as several schemes completed last year, while PBSA revenue rose on new developments and sales
COST MANAGEMENT - Co said operating profit was maintained due to strong construction delivery and effective cost control despite inflationary pressures
Company press release: ID:nRSa7787Fa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 100.20 mln |
|
H1 Adjusted EBIT |
| GBP 400,000 |
|
H1 Adjusted Gross Profit |
| GBP 9.30 mln |
|
H1 EBIT |
| GBP 400,000 |
|
H1 Gross Profit |
| GBP 9.30 mln |
|
H1 Pretax Profit |
| -GBP 900,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy."
Wall Street's median 12-month price target for Watkin Jones PLC is GBp103.00, about 350.8% above its May 26 closing price of GBp22.85
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)