Watkin Jones plc Pre-Close Trading Statement (3933P)

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RNS Number : 3933P

Watkin Jones plc

17 November 2016

 
For immediate release  17 November 2016 
 

Watkin Jones plc

('Watkin Jones' or the 'Group')

Pre-Close Trading Statement

Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, is pleased to provide a trading update for the year ended 30 September 2016 (the 'period').

The Board expects to report a successful financial year with trading in line with its expectations.

As announced on 27 September 2016, Watkin Jones successfully completed, ahead of the 2016/17 academic year, ten developments across the UK with a total of 3,819 student beds. Watkin Jones has a record of on-time delivery of schemes and all developments expected to be completed ahead of the 2017/2018 academic year, remain on track. The Group continues to add sites to its strong development pipeline and, at 30 September 2016, it had a total of 21 developments with 6,814 beds targeted for delivery during 2017 and 2018.

The Group's pipeline beyond 2018 is also looking robust with over 2,000 beds across a number of sites already secured. This includes the proposed redevelopment of the Duncan House site in Stratford, London, to provide 511 beds of student accommodation, 44 residential apartments and approximately 28,000 square feet of academic and office space. The scheme has a gross development value in excess of GBP100 million and is due for delivery in 2019.

Fresh Student Living, the Group's asset management subsidiary, continues to progress well, and now has 12,337 beds under management for the 2016/17 academic year (8,310 under management during the 2015/16 academic year).

The pipeline going forward provides the Group with strong visibility of earnings and cash flows and underpins our strategy in the near term. As a result, and with interest from investors in Purpose Built Student Accommodation remaining consistently strong, the Board remains confident in the outlook for the Group.

Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: "It has been a busy year for the Group and excellent progress has been made. Not only have we delivered 3,819 beds across ten sites in the UK, but we have also successfully made the transition to being a public company. Our performance in the year reinforces the attractiveness of our end-to-end business model to investors, whilst our development pipeline continues to provide excellent visibility of earnings and cashflow."

The Group will be announcing its Final Results on Wednesday, 18 January 2017. An analyst briefing will be held at 09.30hrs at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

- Ends -

For further information:

 
Watkin Jones plc 
Mark Watkin Jones, Chief                    Tel: [phone] 
 Executive Officer                                            516 
Phil Byrom, Chief Financial                www.watkinjonesplc.com 
 Officer 
 
Zeus Capital Limited (Nominated Adviser 
 & Joint Broker) 
Corporate Finance 
Dan Bate / Nick Cowles / Jamie Peel          Tel: [phone] 
                                                             1512 
Corporate Broking                            Tel: [phone] 
                                                             5000 
Dominic King / Benjamin Robertson           www.zeuscapital.co.uk 
 
Peel Hunt LLP (Joint Broker)                 Tel: [phone] 
                                                             8900 
Mike Bell / Matthew Brooke-Hitching              www.peelhunt.com 
 
 
 

Media enquiries:

 
Buchanan 
Henry Harrison-Topham / Richard  Tel: [phone] 
 Oldworth / Jamie Hooper 
[e-mail]            www.buchanan.uk.com 
 

Notes to Editors

Watkin Jones is a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector. The Group has strong relationships with institutional investors, and a good reputation for successful, on-time-delivery of high quality developments. Since 1999, Watkin Jones has delivered over 31,800 student beds across 98 sites, making it a key player and leader in the UK purpose built student accommodation market. In addition, Watkin Jones has been responsible for over 50 residential developments, ranging from starter homes to executive housing and apartments.

The Group's competitive advantage lies in its experienced management team and business model, which enables it to offer an end to end solution for investors, delivered entirely in-house with minimal reliance on third parties, across the entire life cycle of an asset. Key components of the business model are:

-- Site identification - extensive experience of site identification and acquisition facilitates high quality sites being acquired;

-- Planning consents - in depth knowledge and experience of the planning consent process specific to this type of asset facilitates high success rates on planning applications;

-- In-house construction and delivery - in-house construction expertise, management and delivery limits reliance on third parties and, together with favourable contractual relationships with key suppliers, enhances control of cost;

-- Funding structure - forward sale model reduces risk for Watkin Jones and provides security and visibility of the asset pipeline for investors. The Group has strong relationships with blue chip investors, including a number that are repeat investors in Watkin Jones developments; and

-- Asset management - dedicated property management division provides a continued service solution to investors post development completion and completes the 'end to end' business model.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 17, 2016 02:00 ET (07:00 GMT)