9th Jun 2016 06:59
LONDON (Alliance News) - Watkin Jones PLC on Thursday noted a huge rise in revenue, but said it swung to loss in its first half, after it incurred costs relating to its initial public offering in March.
The student accommodation developer said its revenue rose to GBP145.9 million for the six months ended March 31, up 41% from the GBP103.8 million reported a year earlier, though said it swung to a pretax loss of GBP9.9 million, from a profit of GBP9.0 million a year earlier.
This came after it incurred GBP6.5 million costs associated with its initial public offering, as well as a reorganisation that took place before the IPO resulting in a net cost of GBP20.1 million. This related to settling various share based management incentive arrangements, triggered by the IPO.
Watkin Jones declared a maiden interim dividend of 1.33 pence per share for the period, in line with the guidance offered at its IPO, that it would pay a full year dividend of 4.00p per share, split one third at the interim and two thirds for the final dividend.
"Following on from our successful admission to AIM in March this year, we are delighted to report such a strong maiden set of half year results today. Our student accommodation development business remains positively underpinned by the fundamentals of the student accommodation market and the forward sale model provides us with excellent visibility as to future earnings and cash flow," said Chief Executive Mark Watkin Jones.
"The current student accommodation pipeline of 31 development sites underpins the business outlook to financial year 2018, with 16 of the 17 developments for delivery by the end of financial year 2017 already forward sold. We are at advanced positions regarding the acquisition of a number of site opportunities that will be for delivery in financial year 2019 and beyond," Watkin Jones added.
"An opportunity exists for our residential business, with the potential for Watkin Jones to apply its student accommodation model to the development and management of purpose built private rented sector schemes," the chief executive added.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Watkin Jones