Watkin Jones Share Discussion Threads

[bothdavis] 31/1/2023 14:11

Francis Salway, Non-Executive Director, purchased 45,500 ordinary shares in the Company on 31 January 2023, each at a price of 110.16 pence per share.......nice to see confidence in a NED purchase.

[srpactive] 26/1/2023 18:29

Yes and all need epc ratings of a B which will take some achieving
believe you me, even if I put a new boiler in and solar panels
on the roof it will still only be a C.

The consecutive governments have been looking to close all private rental sector
student accommodation for decades and now they will achieve it.

As said will probably sell up and put it in here.

dyor

[christw1234] 26/1/2023 14:36

Apologies Studrents analysis

[christw1234] 26/1/2023 14:32

According to students, the uk is on track to face a shortfall of around 450.000 student beds by 2025-based on analysis of the new student beds likely to be delivered by the time compared to the growing student numbers.
WJ are experts at delivering and managing PBSA at increasing margins to mitigate increases in funding and development costs.

[bothdavis] 26/1/2023 08:37

Investors Chronicle today:

Watkin Jones (WJG:102p), a developer specialising in purpose-built student accommodation (PBSA) and build-to-rent (BTR) housing, reduced 2022 operating profit guidance by 10 per cent last autumn when two forward sales were pushed back to the new financial year due to the spike in market volatility. At the time, the directors also warned of weaker margins and pricing pressure as purchasers face higher funding costs (‘Margin pressure and market volatility hit Watkin Jones’, 4 October 2022).

Interest in forward sales is returning, although management cautions that new forward sales will be weighted to the second half of the 2023 financial year. The directors also note that gross margin of 16.6 per cent in 2022 is likely to fall to 12-14 per cent in the short term due to institutional investors facing higher financing costs. Sensibly, overheads are being closely monitored and a cost-saving plan is expected to deliver annualised savings of £3mn-£4mn.


Market opportunity

Despite the setback, the long-term fundamentals of both Watkin Jones’ markets remain robust, as highlighted by a £2bn forward pipeline, split equally across the two divisions.

Ownership of UK rented housing remains fragmented – only 1.7 per cent is owned by institutional investors – with high levels of occupancy, rent collection rates and attractive investment yields driving investor interest. Investment into BTR assets in the third quarter of 2022 was up 75 per cent year on year, with more than £5bn of investments being made in the 12-month period.

In the UK, the number of full-time students continues to grow steadily, a key determinant of demand for PBSA. The growth in non-EU applications means that the EU only provides 3 per cent of applications, so does not have a meaningful impact on overall demand for UK university places.

There is a long-term demand-supply imbalance for PBSA, too. This imbalance is expected to increase, with the predicted annual increase in the number of students exceeding the supply of new beds. Privately owned PBSA accounts for more than half of the 698,000 PBSA beds in the UK, but one quarter is unrefurbished, first-generation stock, built pre-1999. A number of these beds are reaching the end of their operational lives and will need replacing. However, only 24,600 new beds were delivered in the 2021-22 academic year, a modest 3 per cent rise on the prior year.

These dynamics explain why institutional investors remain attracted to UK PBSA as a mature, stable and income-producing asset class. Knight Frank reported £6.9bn of transactions in 2022, the highest investment volume on record.

[its the oxman] 25/1/2023 11:26

Results seem decent enough. Sure div down slightly and tough times for a while but no significant debt unlike many, so for me feels oversold near 100p. Suspect when interest cycle turns these could motor higher.

[riverman77] 25/1/2023 10:18

Overall not too bad, but there's probably nothing here that's going to drive any meaningful recovery until clear signs that things are picking up. Happy to have sold my position last week to bank 20% profits and will keep on my watchlist to see how things unfold.

[hybrasil] 25/1/2023 10:12

“EXPECTED̶1;?

[tanneg] 25/1/2023 08:41

Missing sales were mentioned as I read it,

"These forward sales are now expected to transact in FY23."

[srpactive] 25/1/2023 07:57

h

Yes, xd 3 Feb payment 2 March.

Lets see what the city thinks.

dyor

[hybrasil] 25/1/2023 07:16

Not as bad as I thought but quite clearly the two missing sales are not contracted or they would have said so.

[skinny] 25/1/2023 07:04

https://uk.advfn.com/stock-market/london/watkin-jones-WJG/share-news/Watkin-Jones-plc-Full-Year-Results-2022/90051333

[srpactive] 24/1/2023 18:53

We will know 7am how things are going one way or another.

dyor

[srpactive] 22/1/2023 18:24

Here too.

Everyone here just listen to D and dyor.

[dissentingvoices] 22/1/2023 08:28

Just to give everybody the quick heads up on the username: srpactive.

He's a fantasy share trader, that we refer to as Captain Hindsight, always claiming he bought "last week" or "last month" and always "just going to buy some more more"
(obviously paid for with unlimited amounts of MONOPOLY money)



The reality is, srpactive LOST ALL HIS MONEY on shares in Boohoo PLC when it dropped off a cliff.

The PROOF is all there, for everyone to see if you go back and read srpactive's many historical posting on ADVFN Boohoo

[srpactive] 21/1/2023 20:55

I feel they will update on sales of the two blocks,
I would not be surprised an Indian investor buys them,
Rishi has agreed I believe for more Indian students to
study in the UK.

I will be buying more if the drop or rise Wednesday, might
even buy Tuesday night. But Monday will be btc and arb for me.

dyor

[bothdavis] 21/1/2023 10:23

or......you might!

[wad collector] 20/1/2023 22:26

Finals on Wednesday, not sure I will like them...

[hybrasil] 18/1/2023 17:25

Inter alia I advise a number of developers
Edit
Look at last nights news from the FED.

At 5% Wjgs model simply does not work

[goodpick] 18/1/2023 16:16

Hybrasil, what do you mean seeing it on the ground ? How close are you to the ground ?

[srpactive] 18/1/2023 15:44

What brokers advice? I have been doing this myself for
over thirty years, well before most ( so called ) advisers
were born.

I am more likely to continue, have you read the government
paper on rented accommodation, no old house will be allowed to be rented
after 2025 / 2028 due to needing a B epc by then, where do you
think you are going to house all the students, yes in the b locks we
build for them. I am more likely to sell some of our houses and
buy wjg with &7% yield and growth.

dyor

[hybrasil] 18/1/2023 12:49

Hi Good pick

I could well be wrong.

I am just seeing on the ground how bad things are between interest rate increases (and there are more to come) and rising costs (though they now seem to be stabilisising).

Any way time will tell. As Margaret Thathcher famously said "you cant buck the markets"

[goodpick] 18/1/2023 11:35

Hybrasil, indeed there is a risk that the reaults wont be positive in the current environment and the share price might pull back.

However who knows ? Its a personal judgement call and it seems you believe it will not be positive and you might be right.

You were though talking about shorting this when it was around 85p / 90p and the price is £1.10 so you might be wrong again.

Hope so.

[hybrasil] 18/1/2023 10:59

srp

You have done extraordinarily well here in a short space of time.

Why not seek your brokers advice about selling some now and buying back if things are still ok after the results.

Yes you may lose if there is upside but you will have made over 30% in a very short space of time.