Q3 Update
Watkin Jones plc reported continued operational delivery in Q3 and secured approximately £60 million in new contracts, diversifying its revenue streams across development and asset management. These new contracts include five for its Refresh division, focusing on refurbishment and asset improvement of existing student accommodation, and a partnership for a Staycity aparthotel scheme. While acknowledging challenging market conditions impacting confidence and liquidity, the company is focused on execution and managing costs. The completion of further transactions in the final quarter is crucial for adjusted operating profit progression, though economic uncertainty poses a risk to their timing.
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Continued operational delivery in Q3 alongside c. £60m of new contracts signed as Watkin Jones executes against diversified growth strategy
Watkin Jones plc, the UK's leading developer and manager of residential for rent, provides the following update on trading for the three months to 30 June 2026 ("Q3").
Whilst the geopolitical and economic backdrop continues to impact both confidence and liquidity in our key markets, the Group remains focused on execution and the factors within our control. This includes successfully delivering our in-build projects in line with stated margin guidance and carefully managing our costs and cash, in particular with further earlier procurement of selected sub-contract packages and materials to mitigate inflationary pressures.
Consistent with the Group's focus on diversifying its revenue streams across development and asset management, Watkin Jones has signed six new contracts with a combined value of approximately £60 million in the second half to date. These include five new contracts secured by our Refresh division, the Group's refurbishment and asset improvement platform, and a partnership with Marick Real Estate to develop a Staycity aparthotel scheme in Oxford's city centre.
The Refresh schemes relate to existing Purpose Built Student Accommodation ("PBSA") assets where the Group will deliver significant remediation, fire safety, refurbishment and asset improvement works further highlighting the growing demand from investors seeking to modernise, enhance, and future-proof existing residential assets whilst enhancing sustainability with lowered operating costs.
The Group is actively engaged with investors on a small number of transactions which have the potential to conclude in the final quarter and completion of which are required to deliver adjusted operating profit progression in the second half over the first half. The Board is mindful that the effects of ongoing economic and political uncertainty on real estate funding liquidity represent ongoing risk to the timing and completion of these transactions.
Alex Pease, Chief Executive Officer of Watkin Jones, commented:
"While market conditions remain challenging and continue to impact the pace of recovery and short-term real estate transaction liquidity, the long-term fundamentals of our end markets remain attractive. The signing of six new contracts, with a combined value of c. £60 million at margins in line with guidance, signals further progress of our strategy to diversify the business, allowing us to strengthen our secured pipeline and enhance future revenue predictability".
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