Watkin Jones Share Discussion Threads

[return_of_the_apeman] 31/1/2017 14:01

Looks like any sellers at 135 are now out. Onwards and upwards :)

[santangello] 31/1/2017 13:24

....looks like the share price wants to break out on momentum buying. As mentioned more than once here, on fundamentals alone, they seem so cheap and will benefit from a rerate in time imho.

[spellbrook] 31/1/2017 13:10

Construction in Belfast is at its highest level in almost a decade, according to a new report.


Eleven new development schemes were completed in the city last year, including two hotels. A further six hotels are currently under construction, set to deliver more than 1,000 new hotel rooms. A total of of 30 schemes are under construction or just recently completed in the city, including the eight hotels, four new educational facilities, seven new student accommodation projects and six office developments, according to the first Belfast Crane Survey report produced by Deloitte Real Estate. The report’s publication coincides with the announcement of two further development projects following the sale by Osborne King of Laganview House on the corner of Oxford Street and Anne Street for a price in excess of the £1.25 million asking price and the purchase of a site in the Cathedral Quarter by Lacuna Developments and Watkin Jones for an undisclosed sum. Simon Bedford, partner in Deloitte’s Real Estate practice, said the report shows that Belfast is on an upward trajectory as a location for investment and development. Ulster University’s move to a larger campus in Belfast has seen a number of student housing schemes already being built. The report calculates that almost 2,500 student accommodation bed-spaces across seven major projects are currently being built in the city centre area. This is in addition to 413 bed-spaces that completed in 2016. Queen’s University is also continuing its investment in new teaching facilities and supporting new student residential development in the city centre. Suzanne Wylie, chief executive of Belfast City Council, said: “The report demonstrates that private sector developers and investors see the opportunities being created by a growth in tourism, new companies locating here, growth in our own business base and more people, including students, wanting to live in the city centre.” Ms Wylie claimed that over the next five years more ambitious targets will create 15,000 new jobs, double tourism spend and encourage another £1.5 billion of investment in more buildings and regeneration projects to meet demands. According to the report the retail and leisure investment is also healthy, with Deloitte noting that the business rate revaluation is leading to more store openings and new brands coming to the city, filling space in Ann Street, Castle Lane and Castle Court. However, office and residential development activity was subdued. The report said that 84 residential units were completed in the city centre in 2016, but none are scheduled to come to the market in 2017. “Office development has proved difficult to finance in the market, which is unfortunate as the corporate demand for Grade A office space is on the increase. “It is also clear that city centre living has yet to really take off in Belfast, but growing student numbers will, we believe, drive this market forward before 2020,” said Mr Bedford, He added that it was highly encouraging to note the direct investment being made by Belfast City Council in the city centre - most notably in 2016 through the joint acquisition of the historic former Belfast Telegraph building on York Street. “Belfast’;s popularity as a business and leisure destination continues to rise and this is having a direct impact on the local property and construction sector, which is attracting significant investment to meet demand. “Belfast’;s development pipeline is in good shape and we therefore expect to see even more cranes on the skyline in 2017 and 2018,” he said.

Read more at: hxxp://www.newsletter.co.uk/news/business/construction-in-belfast-at-highest-level-in-almost-a-decade-1-7798579

[skinny] 31/1/2017 12:06

A new high @135p

[rivaldo] 31/1/2017 10:36

FYI Peel Hunt's latest forecasts are:

- this year : 13.39p EPS, 6.28p dividend
- next year : 15.14p EPS, 6.59p dividend

It's hard to believe the share price won't make decent progress on such a current miserly rating given WJG's already terrific forward visibility of the above forecasts and on such a huge divi yield.

[spellbrook] 31/1/2017 09:15

Thanks Skinny..



It has become the fourth purchase in the capital by the JV between Lacuna Developments and Watkin Jones.

The site is set behind the Ulster University Belfast campus, which is due to complete its final phase of renovation by 2019. It is also adjacent to St Anne's Square, a leisure-led mixed-use scheme which contains a Ramada Encore hotel, Pure Gym and a variety of restaurants and cafés.

Anthony Best, managing director at Lacuna Developments, said: "The joint venture has now committed to more than £85m worth of end development in Belfast since February 2015.

"This latest site acquisition shows our commitment to Belfast. We look forward to working again with Belfast City Council to deliver this end development."

David Wright, director at CBRE, believes the deal presents a "great opportunity for Belfast".



hxxps://www.insidermedia.com/insider/ireland/cathedral-quarter-scheme-acquired

[skinny] 31/1/2017 09:09

Spellbrook - .

[spellbrook] 31/1/2017 08:57

trying to find out anymore info on the below....wjg seem to have a partnership going with lacuna in Ireland ????

30 January 2017 12:24 pm
Lacuna Developments and Watkin Jones have acquired a former office block in Belfast city centre as part of a wider £85m regeneration scheme.

[rivaldo] 31/1/2017 08:16

Cheers Spellbrook - the Torygraph has a large readership so this will hopefully bring in some decent buying over the next day or two.

[jonwig] 31/1/2017 07:21

[Thanks SPELLBROOK, more ...]

... business, so the chief executive, Mark Watkin Jones , is unlikely to do anything daft to threaten this heritage.

Finally, the 4p-a-share dividend paid in the last fiscal year is forecast to rise to 6.3p for the year to September, enough for a 4.8pc yield.

A forward price to earnings ratio of less than 10 looks attractive and should build in a margin of safety, reflecting scepticism about builders in general and concerns that Brexit may affect student numbers.

[spellbrook] 31/1/2017 06:47

Questor: don’t be put off by the Aim listing – this family firm has no debt and a yield of 4.8pc

31 JANUARY 2017 • 6:13AM
Many investors are wary of the London Stock Exchange’s junior platform, Aim, but a good number of well run, well financed dividend-paying companies can be found there and income investors may well warm to Watkin Jones, which builds student accommodation.

The company floated on Aim in March last year and has just delivered a very solid set of maiden full-year results. Sales rose by 9pc and operating profits advanced by 17pc, excluding the costs that came with the stock market quotation.

Better still, there is good visibility of future earnings as the forward sale of five developments, notably in Cardiff and Belfast, means that around 70pc of this year’s forecast profits are covered, according to analysis from Zeus Capital, an investment bank.

This should reassure Aim sceptics, as should three other features. First, the company’s balance sheet has net cash. Second, it is a ninth-generation family-run...

[spellbrook] 30/1/2017 16:46

Lacuna and Watkin Jones snap up Belfast site
30 January 2017 12:24 pm
Lacuna Developments and Watkin Jones have acquired a former office block in Belfast city centre as part of a wider £85m regeneration scheme.



hxxp://www.propertyweek.com/news

[spellbrook] 30/1/2017 11:07

Watkin Jones Group
3 mins ·
Expected August 2017, Morfa Road, Swansea, Phase 2 is an extension to the successful Morfa Road, Phase 1 scheme that was completed in 2014. This new build student accommodation scheme will have 340 rooms split down into 329 cluster bedrooms and 11 studios.

[dibbs] 28/1/2017 00:19

Thanks Shauney2 much appreciated.

[shauney2] 27/1/2017 12:11

If the copyright police come calling i will say you waterboarded me into it.


Decent earnings visibility on student accommodation builder Watkin Jones’ (WJG:AIM) means its shares are too cheap.

The company’s March 2016 IPO (initial public offering) saw the largest fundraising on AIM in two years at £131m. Furthermore, maiden financial results as listed company were very good.

Operating profit for the year to 30 September 2016 increased by 16.7% to £37.9m excluding one-off costs mainly associated with its IPO.

Making substantial progress

Since the financial year end, the company has announced the forward sale of five developments. Broker Zeus Capital estimates 70% of the current financial year’s expected profit has already been secured by forward sale projects.

Analyst Andy Hanson says: ‘Across the forecast period, Watkin Jones has currently secured circa 9,500 beds across 27 sites; 61.6% of these beds have been forward sold.’ He says this figure increases to 87.2% when including beds that have planning consent.

‘Assuming an annual delivery of 3,500, securing a further 1,000 beds for delivery in the year September 2019 would mean visibility on 100% of the beds due for completion across the forecast period.’

Despite the confidence this provides in earnings forecasts, the company trades on a prospective price-to-earnings ratio of 9.5 (too low, in our view). It also offers an attractive 4.8% prospective dividend yield.

The dividend also looks fairly safe when you consider the company’s position. It is sitting on more than £30m net cash and has £50m of new bank lending facilities.

It also generated operating cash flow before IPO costs of £41.7m in the September 2016 financial year, up from £28.4m a year earlier.

A ninth-generation family-run business, Mark Watkin Jones is the current chief executive. Family businesses are often considered to be attractive to investors because typically they have an emphasis on the long-term; they are disciplined with their capital; and they tend to have a strong and consistent corporate culture.

Rental opportunity

The company recently stepped out from its student focus to build a position in the private rental sector but the CEO is keen to emphasise to Shares the positive fundamentals which continue to underpin student flat market.

He notes Brexit is unlikely to have too much of an impact given only around 7% of the student population in the UK comes from the European Union (EU), while weak sterling could make the UK an attractive destination for non-EU students.

The company’s Fresh Student Living arm is a growing student accommodation platform through which it plans to operate 18,000 student beds across the UK by 2020.

Snap up the shares at 130p.

[rivaldo] 27/1/2017 11:48

Featured in Shares Magazine - anyone a subscriber?



"You need Watkin Jones in your portfolio

Student accommodation specialist has attractive earnings visibility and a tasty dividend yield

26 January 2017|Smaller Companies

Decent earnings visibility on student accommodation builder Watkin Jones’ (WJG:AIM) means its shares are too cheap. The company’s March 2016 IPO (initial public offering) saw the largest fundraising on AIM in two years at £131m. Furthermore, maiden financial results as listed company were very good. Operating profit for the year to 30 September 2016 increased by 16.7% to £37.9m ..."

[spellbrook] 26/1/2017 07:47

Ex Divi date..............

[return_of_the_apeman] 25/1/2017 08:14

That's weird, articles were published yesterday.

[glaws2] 25/1/2017 07:35

The Aberdeen planning permissions were in the RNS on 22 Dec 2016

[spellbrook] 24/1/2017 21:41

Thanks rota



Planning permission has been granted for two separate student housing developments in Aberdeen, offering 817 beds of student accommodation between them.

Development firm Watkin Jones has received consent to redevelop Pittodrie Street, which is in close proximity to Aberdeen University, and Caledon House, which is situated in a prime location opposite Robert Gordon University.

Pittodrie Street
Pittodrie Street
Designed by Manson Architects, the Pittodrie Street development will provide 618 beds of student accommodation and is expected to be completed in the summer of 2019, ahead of the 2019-20 academic year.

Caledon House by ICA, meanwhile, will provide 199 beds of student accommodation (147 ensuite clusters and 52 self-contained studios) and is scheduled to be completed in the summer of 2018, ahead of the 2018-19 academic year.

hxxps://www.scottishconstructionnow.com/16989/green-light-for-two-aberdeen-student-housing-projects/

[return_of_the_apeman] 24/1/2017 13:55

More good news


hxxp://www.scottishhousingnews.com/13560/green-light-for-two-aberdeen-student-housing-projects/

[spellbrook] 24/1/2017 10:12

Watkin Jones Group added 4 new photos.
1 hr ·
Bridge St, Cardiff is a prestigious City Centre development comprising of a 24 storey tower block with abutting 10 storey and 5 storey blocks above a central amenity space. Ground floor containing 2 number retail shell and core areas and a fully fitted out Alcohol Treatment Centre. Expected in August 2018, the development also provides 463 student beds over the multiple storeys.

[jonwig] 24/1/2017 07:10

"The Company's Annual General Meeting will be held at 10:30 a.m. on Thursday, 16 February 2017 at the offices of DLA Piper UK LLP, 1 St. Peter's Square, Manchester, M2 3DE."

That's good: keep it local. If I'm free to go, I will, as it's only an hour away by train.

Tha AR is here, lots of pictures to showcase their work:

[spellbrook] 23/1/2017 22:22

IC update published today....

Investors are finally cottoning onto the investment potential of Watkin Jones (WJG:134.5p), a construction company specialising in purpose-built student accommodation (PBSA). It's a company I know well, having done extensive research into the business ahead of last year's Aim-listing which prompted me to advise buying the shares around the 103p mark ('A profitable education', 3 Apr 2016). I last rated them a buy at 118.5p ahead of last week's full-year results ('Small cap value plays', 5 Dec 2016), noting that my 140p target price was looking increasingly conservative. The results did little to alter that view.

The company completed 10 schemes encompassing 3,819 beds in the 12 months to end September 2016, a performance that increased pre-tax profits by a quarter to £40.3m and delivered EPS of 12.6p. This supported a maiden full-year dividend of 4p a share. Moreover, the company has 21 developments with 6,800 beds slated for delivery during 2017 and 2018. The pipeline beyond 2018 is looking just as robust given that six sites have already been secured, including the largest project to date, a 511-bed scheme worth £100m in Stratford, east London, which Watkin Jones forward sold in late December.

Importantly, future earnings have been de-risked through the substantial number of forward sales of schemes to institutional investors. In fact, all bar one of the 10 projects slated for delivery in the current financial year have been sold and the one other is in legal negotiation for sale. Forward selling sites reduces the company's working capital requirements as the end-purchaser finances the development and is billed on a monthly basis, as opposed to a non-forward sold development where revenue is only received on sale of the asset post completion. As a result Watkin Jones looks nailed on to deliver a 10 per cent hike in EPS to 13.7p in the 12 months to 30 September 2017, implying the shares are being rated on less than 10 times earnings estimates and on an attractive PEG ratio of one. Furthermore, with the benefit of a cash-rich balance sheet - net funds of £32.2m equates to 12.6p a share - expectations of a 6.3p a share payout as analyst Andy Hanson at brokerage Zeus Capital predicts look sound, suggesting the prospective dividend yield is close to 5 per cent. Mr Hanson is pencilling in a further rise in EPS to 14.6p the year after too.

So, given the company's robust pipeline, the significant de-risking of earnings, and prospects for a progressive dividend policy being adopted, I feel that my previous target price of 140p is too conservative and have raised it to 155p, in-line with analyst Gavin Jago at broking house Peel Hunt, but slightly below the 160p target of Mr Hanson at Zeus Capital. Buy.