Watkin Jones returns to profit

Watkin Jones has returned to profit in the first half the year.

The student housing and build-to-rent specialist developer added that the the development picture is slowly improving after being in the doldrums since the mini-Budget in September 2022.

It posted a pre-tax profit of £2.1m in the six months to March from an £800,000 loss last time on turnover up 14% to £175m.

It has restructured in the past year with new chief executive Alex Pease taking on the role permanently last November. It has also been hit with remedial costs which sent it to a £42.5m pre-tax loss in the year to September 2023 from an £18.4m profit last time.

But Pease’s firm said a recovery was now underway and added: “There has been gradual improvement in sentiment in the property investment market, which we expect to support a continued recovery in forward fund transaction demand.”

It warned, however, that “a slower than expected reduction in interest rates has potential to impact pace of recovery”.

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Watkin Jones said it would not pay an interim dividend as it was “prioritising the maintenance of financial flexibility during this period of market disruption”.

The firm’s total pipeline of work was £1.4bn with the firm submitting planning for 3,000 student bedrooms in the first half across four schemes.

Watkins Jones said its net cash position during the period was £44.3m, down from £45m last time.