Watkin Jones (AIM:WJG), the UK's leading developer and manager of residential properties for rent, said operating profit for the half year ended 31 March is expected to be similar to HY 2025 despite a reduction in revenue caused by lower levels of transactional activity.
In-build schemes achieved margins in line with the Group's stated guidance and the business signed two transactions in the period, a PBSA scheme in Bristol through its joint venture with Maslow Capital and a hotel scheme on a brownfield site in Wimbledon, the Group said.
The company said it is seeing an increased pipeline of attractive opportunities in Refresh and Development Partnerships, with a 20% rise in the Development Partnerships pipeline leaving the Group's overall pipeline broadly in line with FY 25.
Gross cash at 31 March was c.£67m (FY 25: £80m) and net cash c.£61m (FY 25: £70m).
Management said it is monitoring geopolitical and economic developments and is taking steps to mitigate potential build‑cost inflation, including earlier procurement of selected sub‑contract packages and forward buying of materials.
The Group noted an adverse movement in the UK interest rate outlook since early March that has increased uncertainty over future transactional liquidity and said it will remain agile in optimising its pipeline while continuing to diversify revenue streams.
