Watkin Jones set for ‘small operating profit’ in first half as it signs two major development deals

Watkin Jones has said it expects to announce a ‘small operating profit’ in its half year results next month.

The £360m-turnover student housing and build-to-rent specialist said it has focused on “delivery, cost management and cash generation” in a challenging market backdrop in the six months to 31 March.

In a short trading update today it said: “Our strong operational focus is expected to result in a small positive operating profit for the period, with good construction delivery on in-build schemes which have traded in line with our stated margin guidance.”

The housebuilder increased its gross cash to £87m as of 31 March 2025, up from £67m in the same period last year, while its net cash rose from £44m to £73m over the same period.

Watkin Jones signed two development deals in the first half of the year. These include an agreement to build 295 homes under a partnership with housing association Torus in St Helens, Merseyside and a deal to deliver a nine-storey 260-home aparthotel scheme in Southwark which it has said will generate £36m in revenue.

>>See also: Watkin Jones issues profit warning as CEO resigns

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The figures come as Watkin Jones seeks to recover from a turbulent period.

In January announced it had drastically reduced its annual pre-tax losses for the year to 30 September 2024. The company reported a pre-tax loss of £300,000, down on the £42.5m loss the previous year. The firm made an operating profit – which excludes certain one-off costs – of £3.6m, compared to a loss of £38m for the previous year.

This followed a difficult period for the firm, which saw a change in leadership and restructuring following a profit warning in July 2023.