Watkin Jones Dividends - WJG

Watkin Jones Dividends - WJG

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Stock Name Stock Symbol Market Stock Type
Watkin Jones Plc WJG London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.70 0.71% 99.00 16:35:12
Open Price Low Price High Price Close Price Previous Close
98.20 98.00 101.80 99.00 98.30
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Industry Sector
REAL ESTATE

Watkin Jones WJG Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
17/05/2022InterimGBX2.901/10/202131/03/202209/06/202210/06/202230/06/20220
18/01/2022FinalGBX5.630/09/202030/09/202127/01/202228/01/202225/02/20228.2
18/05/2021InterimGBX2.601/10/202031/03/202110/06/202111/06/202130/06/20210
19/01/2021FinalGBX7.3530/09/201930/09/202028/01/202129/01/202126/02/20217.35
14/01/2020FinalGBX5.630/09/201830/09/201923/01/202024/01/202028/02/20208.35
21/05/2019InterimGBX2.7501/10/201831/03/201906/06/201907/06/201928/06/20190
15/01/2019FinalGBX5.1330/09/201730/09/201824/01/201925/01/201928/02/20197.6
22/05/2018InterimGBX2.4701/10/201731/03/201807/06/201808/06/201829/06/20180
16/01/2018FinalGBX4.430/09/201630/09/201725/01/201826/01/201828/02/20186.6
01/06/2017InterimGBX2.201/10/201631/03/201708/06/201709/06/201730/06/20170
18/01/2017FinalGBX2.6730/09/201530/09/201626/01/201727/01/201728/02/20174
09/06/2016InterimGBX1.3301/10/201531/03/201616/06/201617/06/201630/06/20160

Top Dividend Posts

Top Posts
Posted at 03/12/2022 10:00 by hybrasil
Look I am going on and on and on. I fully accept some will find it annoying.

What I am trying to convey is that in the current interest rate environment forward sales are a thing of the past.

WJG s model is the site acquisition construction and sale.

Edit. Also see today’s news on black stone property fund limiting withdrawals

It’s share price if they have to hold the assets they construct will be decimated.

That’s all!

Posted at 20/10/2022 14:54 by cordwainer
Net cash according to the last update was £75M which overtops the circa £25M paid in dividends over the past year. I would still hope and expect management to take a very cautious approach to dividends for the reasons stated in the trading update; i.e. WJG's customers are set to face a more challenging future on borrowing / financing costs for their construction projects. Anyway it looks like Huntonomics will keep a steadier ship economically whoever gets to be PM.

On the face of it, WJG warns profits will be 10% below target range, share price down 50%. Having good revenue visibility and largely less cyclical businesses than other construction should make WJG a good risk/reward offer at these prices.

Posted at 14/10/2022 13:10 by 74tom
Nice post Sphere, I've just added some more too post KK getting the boot. Gilts are already on the way down and I expect they'll stabilise post tax cuts being reversed. Stability is a scenario that will benefit almost everyone, except those wanting to short everything and anything ;)

I thought it worth responding to Hybrasil's earlier bearish post as I think it highlights that they still don't understand the WJG business model...

"I keep coming back to the model here. The suppliers of finance on which it is predicated simply will not (if I am right) be here"

Why would any patient capital investor decide to stop investing in the long term BTR / student property market because interest rates have normalised? For a start there was a shed load of student accommodation build pre the 2008 GFC when base rates were substantially higher than present...

If they borrow £200m to fund a development and have to pay 3% more interest then this will to be recouped over the life of the asset via higher rents. Likewise on a student property development. They are buying the asset for it's reliable and price inelastic rental income, not for the paper based gain in underlying NAV...

Their is a very obvious bear case against all UK housebuilders & property REITS of both falling demand for new builds & falling NAV. WJG aren't in the new build for sale market and they aren't a REIT...

Posted at 14/10/2022 10:52 by 2vdm
Here's the link to progressive equity's research which supports WJG's model over the longer term. I think it makes a good argument for the LTHs of which I'm one.

hxxps://progressive-research.com/wp-content/uploads/data-sync/research/WJG%2020221013.pdf?utm_source=sendgrid.com&utm_medium=email&utm_campaign=website

Posted at 13/10/2022 09:53 by mbdx7em21
Valuation. Following the steep fall in the shares, the cash-rich group is
trading at a FY23E PER of 5.1x and dividend yield of 9.9%.

Posted at 11/10/2022 11:16 by riverman77
Completely different companies - UKCM is a REIT which holds properties on its balance sheet and collects rents (rents make up most of its returns). WJG is a developer, which forward funds developments to reduce balance sheet risk. Most of its returns ultimately come from buying land, getting the necessary planning permissions, and then selling on for a profit. Not saying one is better than the other, but you are comparing apples with pears.

In some ways WJG should be better placed than REITs since they don't hold huge amount of properties on the balance sheet, which are likely to be marked down. Most REITs are geared so this will amplify the mark down. In contrast, WJG have 75m net cash so should be able to buy up cheap land if prices fall.

Posted at 05/10/2022 09:33 by red ninja
Snippet from Investor's Champion tipsheet. They seem to think there is value here :-

"The balance sheet remains in great shape with gross and net cash at 30 September 2022 of approximately £105m and £75m respectively.

In terms of outlook Watkin Jones has good revenue visibility coming into the next financial year with c. £270m of revenue secured and expects demand from institutions for residential for rent assets to remain robust. However, they also believe it is prudent to assume that margin pressure because of purchasers' elevated borrowing costs will continue into FY-2023.

In response, one analyst has cut forecast adjusted pre-tax profit goes from £55m to £49m for FY22E and, adopting a prudent stance, from £75m to £50m for FY23E. Earnings per share are reduced to 15.5p (-11%) and 15.8p (-30%) respectively. The forecast dividend remains at 8.7p for FY22 and 7.9p for FY23.

The shares fell 34% on the day of the news and have now fallen c64% from January highs of 282p to only 100p. This results in a current year earnings multiple of only 6.3x and dividend yield touching 8%.

Watkin Jones is not structured like a traditional house builder, forward selling its Build to Rent developments and holding limited land-bank inventory. Return on equity is therefore more than double that of traditional house builders.

The shares have now fallen back to the March 2016 IPO price of 100p which looks overly harsh, with revenues, profits and cash flow having risen substantially since then. Its capex light operating model has seen free cash flow over the 5 years to Sept 2021 average £39m per annum, equivalent to a free cash flow yield of 15% at the current valuation, although free cash flow is forecast to be a negative £23m in the current financial year."

Posted at 04/10/2022 18:14 by paleje
ST aired his opinion this evening:-

... and build-to-rent (BTR) housing, lost a third of their value after the group missed 2022 operating profit estimates by 10 per cent and warned of both softness in margins as well as pricing pressure as purchasers face higher funding costs.

Two forward sales that were planned to close in September have been pushed back to the new financial year due to the spike in market volatility. So, although the trading performance in the second half was materially better than the first half, analysts at Progressive Equity Research have downgraded their pre-tax profit estimates by 10 per cent to £49mn on revenue of £421mn (down from £561mn previously forecast) for the 12 months to 30 September 2022.

They have also slashed their forecasts for the 2022/23 financial year, cutting their revenue estimates by £114mn to £545mn, trimming BTR profit margins from 17 to 13 per cent, and increasing administration costs by £2.6mn, the overall effect of which is a 33 per cent downgrade in group pre-tax profit estimates to £50mn. On this basis, expect flat earnings per share of 15.8p and a dividend of 7.9p a share (down from 8.7p forecast in 2022) implying the shares are rated on a forward price/earnings (PE) ratio of 6.3 and offer an 8 per cent prospective dividend yield. Closing net cash of £75mn (30p a share) now accounts for 30 per cent of the group’s market capitalisation.

There is no glossing over the scale of the profit downgrade, and understandably investors are taking a cautious stance, selling the shares down to their 100p IPO price. But equally the long-term fundamentals support both asset classes, driven by rising tenant demand and attractive income characteristics for institutional investors. Also, forward sales still account for half of revised 2023 revenue estimates, offering a degree of visibility even though earnings risk is now greater in a more challenging trading environment. Hold.

Posted at 04/10/2022 15:43 by farnesbarnes
Goodpick,

It doesn't matter if you are right that BTR is not student accommodation (although I didn't say it was, you should be aware of WJG group strategy - hTTps://www.watkinjonesplc.com/about-us/our-group-strategy ) it doesn't matter if you are right that WJG is a developer. And it doesn't matter if you are right that others are using "a" wrong valuation model.

What does matter is that when you are wrong, you are only slightly wrong. And that doesn't seem to be the case given you feel the need to correct contrarian opinion at every given opportunity. Your posting is quite emotive.

Essential - you're welcome. Don't remember exactly what I said, but the business case for the likes of WJG and Inland is tough currently. The fact that some huge privately owned BTR developers have gone bump this year is not lost on me.

Posted at 04/10/2022 08:26 by 74tom
Yep, had to check the progressive figures & balance sheet before committing but this looks massively overdone. Shares had already fallen from 228p in mid Aug to 152p at close last night, so a further 30% fall looks unjustified vs a 10% miss in operating profit. Dividend yield is nearly 9%...
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