Watkin Jones first-half margins meet expectations

13th Apr 2023 13:57

(Sharecast News) - Residential developer and builder Watkin Jones said in an update on Thursday that its first-half performance was mainly driven by forward-sold developments currently under construction.

The AIM-traded firm said project margins were in line with its updated guidance as given in January, except for a scheme in Exeter, where it incurred additional costs due to the liquidation of a contractor.

It said the underlying residential-for-rent market was performing well, with strong tenant demand and rental growth in the core purpose-built student accommodation (PBSA) and build-to-rent (BTR) sectors.

The company said it was seeing a recovery in the appetite for forward-funds, adding that it expected to close a number of transactions in the second half of the year.

Currently, the firm had five schemes either formally under offer, or it was expecting to appoint preferred bidders imminently.

As it previously flagged, Watkin Jones was expecting its performance would be materially second-half weighted.

The group had gross and net cash of around £83m and £44m, respectively, on 31 March, compared to £45m and £27m at the end of the first half in 2022.

"The group's interim results will be announced on Tuesday, 23 May," the board confirmed in its update.

At 1337 BST, shares in Watkin Jones were down 6.26% at 89.9p.

Reporting by Josh White for Sharecast.com.