21st May 2019 10:44
LONDON (Alliance News) - Student accommodation firm Watkin Jones PLC reported a "successful" interim period, with performance meeting expectations.
In the six months to March, Watkin Jones' revenue rose 0.5% to GBP159.1 million, with pretax profit falling 0.9% to GBP23.4 million.
However, on an adjusted basis, Watkin Jones' pretax profit jumped 10% to GBP26.0 million.
Watkin Jones has increased its interim return to shareholders by 11%, to 2.75 pence a share.
"We are pleased to report another strong set of results, in-line with our expectations. The financial performance of the group continues to be underpinned by robust student accommodation development activity and we are very encouraged by the increased contribution from the group's other operating divisions," said Chief Executive Richard Simpson.
Looking segmentally, revenue in the core student accommodation unit fell 9.5% year-on-year to GBP128.8 million, which was expected due to a fall in the number of developments due for completion.
In Build to Rent, revenue surged to GBP8.8 million from GBP600,000 due to a contribution from its Reading development, which Watkin Jones said is going well, as well as an apartment scheme in Wembley.
"The underlying market dynamics for both student accommodation and Build to Rent are strongly supportive of the group's forward sale model, which combined with our pipeline of forward sold and secured development sites, continues to provide the group with excellent visibility on future earnings and cash flow," continued Simpson.
"Consequently, the board remains confident in the prospects for the group."
Shares were flat on Tuesday morning at 228p each.
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