HY24 Trading Update

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) 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 [e-mail].

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For further information:

Watkin Jones plc
Alex Pease, Chief Executive Officer	Tel: [phone]
Sarah Sergeant, Chief Financial Officer	www.watkinjonesplc.com
Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker)		Tel: [phone]
Mike Bell / Ed Allsopp		www.peelhunt.com
Jefferies (Joint Corporate Broker)		Tel: [phone]
James Umbers/David Sheehan / Paul Bundred		www.jefferies.com

Media enquiries:

Buchanan
Henry Harrison-Topham / Steph Whitmore	Tel: [phone]
[e-mail]	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

 

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