15th Jan 2019 08:37
LONDON (Alliance News) - Watkin Jones PLC on Tuesday reported a double-digit growth in revenue and profit in its most recently ended financial year, helped by strong performance across all of its segments.
The stock was trading 2.6% higher on Tuesday morning at 218.50 pence a share.
Watkin Jones declared final dividend of 5.13 pence a share, taking the total payout to 7.6p, up 15% year-on-year.
The property construction company said pretax profit grew by 26% to GBP54.3 million in the year to the end of September 2018, compared to GBP43.3 million reported the year before.
Revenue rose by 20% to GBP363.1 million from GBP301.9 million. The Student Accommodation segment, which generates majority of the company's earnings, recorded 22% rise in revenue to GBP312.7 million from GBP256.1 million.
In 2018 financial, the company completed 10 developments, with nine developments currently forward sold for delivery in financial 2019 and 2020.
In the Residential division, Watkin Jones completed 175 sales, comprising homes and apartments in the North West, it said, up from 94 sales completed in financial 2017. This resulted in revenue of GBP30.0 million, up from GBP18.1 million year-on-year.
The company said it continued to make good progress in the Build To Rent division during the year, both with acquiring sites for developments and working with institutions bringing opportunities to the company.
In May 2018, Watkin Jones entered into a development funding agreement with M&G Real Estate to deliver a build to rent scheme in Reading, England. In addition, it has secured planning consents for 147 units at Holdenhurst Road in Bournemouth, England, and consent for 165 units at site in Sutton, near London.
Finally, the company's Accommodation Management unit continued to grow strongly, generating revenue of GBP7.3 million compared to GBP6.1 million a year earlier.
Looking ahead, the company said it intends to continue to grow the business through its focus on student accommodation, while making further progress in build to rent.
"Today Watkin Jones has reported a record set of full year results which show that the group has performed strongly across all key financial metrics of the business," said Chief Executive Richard Simpson.
"As a result, we remain confident in the outlook for the group," added Simpson.
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