Full Year Results for the year ended 30 September 2025
Resilient FY25 performance with £2bn of future pipeline opportunities
The Group announces its annual results for the year ended 30 September 2025 (‘FY25’).
| Adjusted Results (1), (2) | Statutory Results | |||
| FY25 | FY24 | FY25 | FY24 | |
| Revenue | £279.8m | £362.4m | £279.8m | £362.4m |
| Gross profit | £26.5m | £33.8m | £19.4m | £33.8m |
| Operating profit/(loss) | £6.3m | £10.6m | £(5.8m) | £3.6m |
| Profit / (loss) before tax | £5.6m | £9.2m | £(8.7m) | £(0.3m) |
| Basic earnings / (loss) per share | 2.3p | 3.5p | (3.3p) | 0.7p |
| Adjusted net cash3 | £70.5m | £83.4m | ||
(1) For FY25 Adjusted gross profit, Adjusted operating profit, Adjusted profit before tax and Adjusted earnings per share are calculated before the impact of exceptional charges of £7.1 million of land and asset impairments within Cost of sales, £5.0 million provided for remedial costs associated with building safety within Administrative expenses, and £2.2 million for the unwinding of the discount rate on the building safety provision within Finance costs.
(2) For FY24 Adjusted operating profit, Adjusted profit before tax and Adjusted earnings per share are calculated before the impact of exceptional charges of £7.0 million provided for remedial costs associated with building safety within Administrative expenses and £2.5 million for the unwinding of the discount rate on the building safety provision within Finance costs.
(3) Adjusted net cash is stated after deducting interest bearing loans and borrowings, but before deducting IFRS 16 operating lease liabilities of £33.6 million at 30 September 2025 (30 September 2024: £40.8 million).
FY25 Highlights
· Revenue of £279.8 million:
– Predominantly derived from previously sold developments on site together with three new development partnerships entered into during the period;
· Good pipeline progression:
– Entry into a number of innovative transaction structures including development partnership to deliver a 260-unit aparthotel in Southwark and Glasgow Joint Venture delivering 784 beds;
– Achieved planning for a further c.1,140 PBSA and c.230 BTR units, across three schemes; and
– Secured three BTR development sites to deliver c.1,100 units, subject to planning.
· Adjusted operating profit of £6.3 million, reflecting:
– Delivery in line with margin guidance on previously sold developments, including the successful practical completion of four schemes;
– Initial contribution from transactions signed in the year; and
– Effective cost management.
· Continued focus on cash management:
– Gross and adjusted net cash balances of £80.4 million and £70.5 million respectively, with a further £10.3 million of cash received from our Glasgow transaction shortly after the year end.
· The provision for building safety works, net of contributions from building owners, decreased by £1.6 million to £46.4 million:
– Cash outflow of £8.8 million, in line with expectations, including completion of remediation works on six buildings; and
– Additional provision of £5.0 million.
· Non-cash impairment charge of £7.1 million in relation to two balance sheet assets.
Outlook
· Enter the coming year with encouraging visibility provided by c.£340 million of contractually secured forward sold revenue for FY26 and future years, and total development pipeline opportunities of c.£2 billion.
· Contracts exchanged at our PBSA scheme in Bristol to deliver 484 student beds, conditional on receipt of Gateway 2 approval.
· Recently signed letter of intent and team onsite to deliver a 294-unit aparthotel in Wimbledon representing c.£40 million of future revenue.
· An active pipeline of development partnerships and Refresh opportunities in line with our diversification strategy.
· Remain focused on the business performance drivers that are within our control:
– Successfully delivering our in-build projects;
– Carefully managing our costs and cash; and
– Continuing to broaden our revenue base with new sources of income.
· Medium term outlook for our sectors remains attractive, with market fundamentals continuing to drive investor sentiment and allocations.
Alex Pease, Chief Executive Officer of Watkin Jones, said:
“FY25 has seen the benefits of our evolved strategy help mitigate some of the effects of the challenging backdrop over the last three years. This resilient performance reflects a combination of strong operational delivery, a more agile approach to transactional structuring, and the increasing contribution from our diversified activities.
With a strong pipeline, highly skilled and motivated workforce and continued revenue diversification, we enter 2026 with confidence in the strength of our operational platform and our ability to create long-term value for our stakeholders.”
Analyst meeting
There will be an in-person presentation for analysts at 09:30am today, Tuesday 16th December, at the offices of MHP Group, 60 Great Portland Street, London W1W 6RT, as well as a webcast and conference call with a facility for Q&A for virtual attendees. For webcast / conference call details, please contact jake.terry@mhpgroup.com. A copy of the Full Year results presentation is available on the Group’s website: http://www.watkinjonesplc.com.
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