Watkin Jones plc
(the ‘Group’)
HY Results for the six months ended 31 March 2025
Positive operational progress underpinned by a resilient and diversified model
The Group announces its interim results for the half year ended 31 March 2025 (‘HY25’ or ‘the period’).
| Adjusted Results(1) | Statutory Results | |||
| HY25 | HY24 | HY25 | HY24 | |
| Revenue | £129.2m | £175.1m | £129.2m | £175.1m |
| Gross profit | £14.4m | £18.4m | £14.4m | £18.4m |
| Operating profit | £0.4m | £4.0m | £0.4m | £4.0m |
| Profit / (loss) per share | £0.2m | £3.4m | (£0.9m) | £2.1m |
| Basic earnings / (loss) per share | 0.05p | 0.99p | (0.27p) | 0.62p |
| Adjusted net cash(2) | £73.4m | £44.0m | ||
(1) For HY25 Adjusted Profit before tax and Adjusted Earnings per share are calculated before the impact of an exceptional finance cost of £1.1 million (HY24: £1.3 million) for the unwinding of the discount rate on the Building Safety provision.
(2) Adjusted net cash is stated after deducting interest bearing loans and borrowings, but before deducting IFRS 16 operating lease liabilities of £37.4 million as at 31 March 2025 (31 March 2024: £44.7 million).
HY25 Highlights
- Revenue of £129.2 million (HY24: £175.1 million) delivered primarily from in-build schemes, with two reaching successful completion in the period
- Two new development partnerships signed for schemes in Southwark and St Helens
- Operating profit of £0.4m (HY24: £4.0 million) achieved as a result of strong construction delivery, with gross margins in line with previous guidance against a backdrop of continuing limited transactional liquidity in the market
- Maintained focus on effective cash management resulting in improved period end gross and net cash balances of £86.8 million and £73.4 million, respectively (HY24: £67.1 million and £44.0 million, respectively)
- Recently secured one development site subject to planning, selectively building future pipeline
- Planning submitted for a further 722 PBSA and Co-living beds across two schemes
- The Board is prioritising the maintenance of financial flexibility during this period of market disruption and consequently is not declaring an interim dividend; the Board will keep this approach under review.
Outlook
- Whilst the external market backdrop remains challenging, we continue to focus on the factors within our control:
- successfully delivering our in-build projects
- carefully managing our costs and cash, and
- further broadening our revenue base with new sources of income
- As UK economic sentiment recovers, transactional liquidity should improve
- Medium term outlook remains robust, underpinned by attractive sector fundamentals within both the PBSA and BTR markets
- c.£270 million of contractually secure forward sold revenue as at 31 March 2025, of which c.£105 million is for delivery in the second half of the year. Total secured pipeline of c.£1.1 billion
- Several schemes are currently being marketed with a number of further forward sales from this pipeline targeted in H2 25 to enable delivery of full year performance in line with current market expectations
- Encouraging progress on Refresh, with an active pipeline being pursued.
Alex Pease, Chief Executive Officer of Watkin Jones, said: “I am pleased to report that trading in the first half was in line with our expectations, despite the continuing challenging market backdrop, as a result of our focus on operational delivery, cost management and cash generation. Our in-build schemes continue to trade in line with our previous guidance, and the two new development partnerships secured in the period demonstrate our ability to be proactive and innovative in deploying our market-leading skills and experience in constructing and refurbishing residential for rent real estate.
“We continue to actively market and engage with investors on our development opportunities which are attracting interest, supported by the attractive fundamentals of the PBSA and BTR sectors in which we operate. Whilst transactional activity remains slow and subject to a continuing volatile market backdrop, we are focussed on ensuring that the Group remains in the best position to exploit opportunities as conditions improve.”