Watkin Jones FY underlying PBIT seen at 'approximately break-even'

11th Oct 2023 10:35

(Sharecast News) - Residential property manager Watkin Jones said on Wednesday that it now expects full-year revenues to exceed £400.0m and underlying profits before interest and tax to be at "approximately break-even" as "challenging market conditions" look set to continue.

Watkin Jones, which previously indicated that it did not expect to "materially improve" on the underlying PBIT of £2.0m recorded in the first half, told investors that since that trading update, it had incurred "certain additional costs" - including acceleration costs to ensure successful completion on two schemes.

However, the AIM-listed group said it was successful in achieving its operational objectives for the second half of the year, with the practical completion of four schemes in the final quarter and the sale of its three non-core PRS operational assets.

In the period since the July update, Watkin Jones also said it has had a "significant focus" on operational and cost efficiencies within the business. This has included reviewing its overhead cost base and implementing a number of cost actions which WJ reckons will generate annualised savings of over £2.0m in the 2024 trading year.

Looking ahead, Watkin Jones said: "Whilst the current challenging market conditions are set to continue into the start of FY24, the group's level of secured revenue for FY24 is circa £330.0m. The group is making progress with its assets for forward sale in the market and remains active, but highly selective, in the land market. There is no change to the FY24 guidance provided in the July trading update."

As of 1035 BST, Watkin Jones shares were down 4.11% at 33.42p.

Reporting by Iain Gilbert at Sharecast.com