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