19th May 2020 12:17
(Alliance News) - Watkin Jones PLC on Tuesday said it will not be paying a dividend despite double-digit earnings growth in the first half of its current financial year.
The residential property firm said pretax profit for the six months to the end of March grew by 19% to GBP26.6 million from GBP22.4 million a year prior, as revenue increased by 17% to GBP185.7 million from GBP159.1 million.
The company explained that its growth was underpinned by both student accommodation development and, increasingly, build to rent.
However, Watkin Jones said it will not be paying an interim dividend, after a 2.75 pence a share payout a year ago.
"We have responded carefully and cautiously to the challenges presented by the Covid-19 pandemic and subsequent lockdown," said Chief Executive Richard Simpson.
"We have strengthened further our financial position by conserving cash; reducing costs, suspending the interim dividend and extending borrowing facilities. We believe that this ensures the long-term resilience of the business as well as its capability to respond quickly as markets recover," continued Simpson.
AIM-listed Watkin Jones shares were trading 1.6% lower in London on Tuesday at 148.20p each.
By Evelina Grecenko; [email protected]
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