Watkin Jones plc
('Watkin Jones' or the 'Group')
Half year results for the six months to 31 March 2017
Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, announces its half year results for the six months ended 31 March 2017. The Board is pleased to report a successful first six months of the financial year with trading in line with its expectations.
Financial Highlights
|
|
H1 2017 |
H1 2016 |
Movement
|
|
Revenue |
£133.7 million |
£145.9 million |
-8.4% |
|
Gross profit |
£29.1 million |
£23.5 million |
+23.8% |
|
Adjusted EBITDA1 |
£21.9 million |
£17.3 million |
+26.6% |
|
Adjusted profit before tax2 |
£21.1 million |
£16.7 million |
+26.6% |
|
Statutory operating profit/(loss) |
£19.4 million |
(£9.5 million) |
n/a |
|
Statutory profit /(loss) before tax |
£21.1 million |
(£9.9 million) |
n/a |
|
Adjusted basic EPS2 |
6.7 pence |
5.2 pence |
+28.8% |
|
Dividend per share |
2.2 pence |
1.33 pence |
n/a |
|
Net cash |
£11.7 million |
£15.4 million |
-24.0% |
· Revenues for the half year were in line with management's expectations, down 8.4% on the prior half year due to the timing of forward development sales and £11.7 million of non-repeating inventory sales of completed residential apartments in the first half of the previous year. Revenues are expected to be stronger in the second half of the current financial year
· Strong profit growth for the half year driven by student accommodation developments. Gross profit for the period increased by 23.8% to £29.1 million (H1 2016: £23.5 million)
· Gross margin for the six months to 31 March 2017 of 21.8% (H1 2016: 16.1%), reflecting the location and quality of student accommodation schemes in development, as well as a full six months contribution from Fresh Student Living, which was acquired into the Group on 25 February 2016.
· Progressive dividend policy: 10% increase in the interim dividend to 2.2 pence per share (FY 2016: Interim dividend of 1.33 pence per share, equivalent to 2.0 pence per share on a full year basis)
· £11.7 million net cash at 31 March 2017 (£15.4 million at 31 March 2016), reflecting normal seasonal working capital profile.