Another impressive performance from property developer Watkin Jones (WJG) was marred by the news that, after 15 years at the helm, chief executive Mark Watkin Jones is to step down for personal reasons – the shares dipped 5 per cent on the news.
Revenue was boosted by a full-year contribution from Fresh Student Living, acquired in 2016, while 17 student accommodation developments were sold in the year to September 2017, providing 6,578 student beds. A further 23 sites providing 9,120 beds are in the pipeline, with 15 already forward sold.
As well as providing student accommodation, Watkin Jones is also developing its build to rent pipeline, and is working towards building around 1,500 units between 2018 and 2022. The first scheme was successfully completed in Leeds, providing 322 units.
Fresh Student Living has been integrated with the Five Nine Living brand and now has 16,082 student beds under management, up from 12,337 a year earlier, while it has also been contracted to manage 535 build to rent units.
Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to September 2018 of £47.8m and EPS of 15.2p (from £43.8 and 14.3p in 2017).
| WATKIN JONES (WJG) | ||||
| ORD PRICE: | 213p | MARKET VALUE: | £544m | |
| TOUCH: | 212.5-213.5p | 12-MONTH HIGH: | 251p | LOW: 117p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 49p | NET CASH: | £41m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 244 | 22.2 | 22.2 | nil |
| 2016 (restated) | 267 | 13.3 | 3.7 | 4 |
| 2017 | 302 | 43.3 | 14.0 | 6.6 |
| % change | +13 | - | - | +65 |
| Ex-div: | 25 Jan | |||
| Payment: | 28 Feb |
