Watkin Jones Share Discussion Threads

[spoole5] 22/12/2016 08:50

How much good news will it take to move these!!

[dibbs] 22/12/2016 08:02

Agree, a very nice update. Pleased I picked up a few more yesterday!Dibbs

[2vdm] 22/12/2016 08:02

Yes,and I also like the fact that we are being informed by what is going on in terms of developments. It is a tribute to the BOD that what was a private company with therefore no need to disclose its activities, has grasped the importance of keeping us informed so openly.
The BOD have a formula which seems to tick all the boxes for the towns/cities concerned, the eventual site purchasers and Watkins Jones itself, both in terms of sales revenue and mngt fees via Fresh. It will be great to see what the half year results look like and I will be surprised if we are still hovering in this 116-118p range for much longer.

[spellbrook] 22/12/2016 07:41

Solid......love the forward selling policy

[skinny] 22/12/2016 07:10

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 the following update on a number of its developments.

Additional forward sale
The Group announces that it has forward sold the student accommodation element of its Duncan House development in Stratford High Street, E15 to an institutional investor for an undisclosed fee. This forward sale follows on from the announcement in June 2016 that the Group had received planning consent to progress with the redevelopment of the site. The proposed redevelopment consists of 511 beds of student accommodation (420 ensuite clusters and 91 self-contained studios); 44 residential dwellings including a proportion of affordable housing in a mix of 1, 2 and 3 bedroom units; a new education facility with 3,150m2 gross internal floor area ('GIA'), and 688m2 GIA of affordable business workspace. The residential units and academic floor space that form part of the wider scheme will be sold in separate transactions by Watkin Jones. The total gross development value of the scheme is in excess of £100million. Demolition work has started on site and the development is anticipated to be completed in the summer of 2019, ahead of the 2019-2020 academic year.

Planning consents
Watkin Jones also announces that it has received planning consents for three developments, two in Aberdeen and one in Sheffield. The Aberdeen schemes include the redevelopment of Pittodrie Street, which is in close proximity to Aberdeen University, providing 618 beds of student accommodation and Caledon House, which is situated in a prime location opposite Robert Gordon University and will provide 199 beds of student accommodation (147 ensuite clusters and 52 self-contained studios). Caledon House is scheduled to be completed in the summer of 2018, ahead of the 2018-19 academic year, whilst the Pittodrie Street development is expected to be completed in the summer of 2019, ahead of the 2019-20 academic year. The development in Sheffield is located in Rockingham Street, in close proximity to the University of Sheffield, and will provide 543 beds of student accommodation (457 ensuite clusters, 69 self-contained studios and 17 one bed apartments) as well as two commercial units totalling approximately 4,340 square feet. Rockingham Street is due for delivery in the summer of 2018, ahead of the 2018-19 academic year.

Completed scheme sale
Furthermore, the Group is pleased to announce that its Athena Hall development in Ipswich has now been sold for an undisclosed amount to Arlington Investors Limited ("Arlington"). Situated on the Quayside in Ipswich, Athena Hall services the University of Suffolk and comprises 590 student beds. Built by Watkin Jones, the development was completed in 2010 and has since been held and operated in a joint venture arrangement. Athena Hall has been managed by Fresh Student Living Limited ("Fresh"), a wholly owned subsidiary of the Group, and Fresh will continue to manage the asset for Arlington.

Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: "It is very pleasing to provide such a positive update on a number of our developments, all at different stages of their life cycle. The planning consents granted for Pittodrie Street and Caledon House are exciting as Aberdeen is an important contributor to the knowledge economy in Scotland, with two universities and approximately 21,000 full time students, and there is a recognised need for purpose built student accommodation in the city. The redevelopment of Rockingham Street in Sheffield provides us with an opportunity to further extend our reach in this important University city.

"With the forward sale of the student accommodation development at Duncan House now completed we can concentrate on the construction phase of this significant development, which will serve the University of London when completed in the summer of 2019. We expect the Duncan House development to make an important contribution to our earnings over the next three years.

"The Group's share of net funds from the sale of Athena Hall will add to our cash position and through Fresh we will have the added benefit of continuing to manage the asset going forward."

- Ends -

[spellbrook] 16/12/2016 16:23

Watkin Jones Group
2 hrs ·
Expected August 2017, Blackhorse Lane, Walthamstow, consists of 527 student beds over 7 storeys as a single block built around a central landscaped courtyard, consisting of 45 studios and 482 cluster beds. The project is part of a larger residential scheme which consists of 475 residential units.

[spellbrook] 16/12/2016 10:57

DIVIDEND NEARS £10M AT DEALMAKING FIRM
16 Dec 2016 North West
Dividend nears £10m at dealmaking firm
Sir Nigel Knowles, chairman of Zeus Capital
A Manchester-headquartered corporate finance and broking business which has worked on some of the region's highest profile AIM floats has paid out almost £10m in dividends following a year when it completed 23 transactions, raising more than £1.5bn across the public and private markets.

Zeus Capital, which also has bases in London and Birmingham, helps companies through transactions including acquisitions, sales, management buyout and floats and also acts as nominated adviser and broker on public market admissions.

Floats Zeus has worked on in recent years include fashion retailer Boohoo, British Car Auctions and off licence chain Bargain Booze.

Accounts for the year to 31 March 2016 reveal that the business paid a dividend of £9.3m following a successful 2015.

Zeus Capital was ranked second on the London Stock Exchange's AIM market for funds raised in 2015, including the largest initial public offering in the period. This was supplemented by its successful private fundraisings totalling £32m across five transactions.

The business made a pre-tax profit of £6.2m in the year to 31 March 2016, down from £9m in 2015, on turnover which rose from £15.9m to £18m. It said it continued to recruit some of the best corporate financiers, stockbrokers and analysts in the small and mid-cap area during the year.

Access to the North American markets was also developed through a partnership with Enclave, a US broker dealer.

A spokesman for the firm said: "The role of Zeus Capital is to support the most vibrant and ambitious businesses and management teams in the UK. Our success over this period is testament to the strength and depth of the team at Zeus Capital.

"Transactions such as Watkin Jones, Elegant Hotels and Matthew Clark reinforced our position as a leading independent investment bank as we continued to invest in our teams across the board in corporate finance, research, sales and broking, across both public and private markets."


hxxp://www.insidermedia.com/insider/northwest/dividend-nears-10m-at-dealmaking-firm

[spellbrook] 14/12/2016 15:30

nice 75,000 BUY , but no movement ...

[spellbrook] 14/12/2016 09:28

Watkin Jones appear to be very proactive......imo...

[spellbrook] 14/12/2016 09:27

Chester Fire Station may make way for student beds
But neighbouring student scheme is rejected raising doubts over whether latest plan will get permission


BYDAVID HOLMES
21:00, 13 DEC 2016UPDATED09:17, 14 DEC 2016
NEWS

There are plans to sell part of the existing Chester Fire Station site and sell off the surplus to a developer.

Chester Fire Station could be knocked down to make way for student housing.

Last Wednesday Cheshire Fire Authority met in secret where they struck a deal with developer Watkin Jones to replace the existing six-bay fire station with a new three-bay station at the front of the St Anne Street base.


Surplus land, including the huge rear drill yard, would be sold for student accommodation generating ‘a capital payment’ for the authority.

But the vision may founder as the council last week unanimously refused a 150-bed student complex at the rear of the fire station after fears Newtown was becoming imbalanced due to the influx of student accommodation.

READ MORE
'Next generation' Chester student housing proposal which even boasts a cinema

Plans to demolish Oakbase house and create a 150-bed student scheme in Trafford Street have been rejected
Fire authority member Cllr Hugo Deynem later tweeted that his authority was backing a student scheme double in size to the rejected Trafford Street plan.

But Cheshire Fire Service will be hoping the council treats its proposals as a special case as it did when planning permission was granted for a new fire station in the green belt at Mollington.

The Mollington station will act as a back-up for both Chester and Ellesmere Port paving the way for the city centre station to be down-graded.

READ MORE
'No confirmed sale' of Chester bus depot
Cllr Bob Rudd who will be the new Lord Mayor of Chester from May 15
Cllr Bob Rudd
Fire authority chairman Cllr Bob Rudd said the existing city centre fire station was ‘far too big’ even before Mollington opens in mid January.

He continued: “I’m sure the developer will want to submit an application for student accommodation. If it’s refused then they may make a decision to appeal or put in an application for something else. We want to see the fire station redeveloped so something else has got to go on that site.”

Cllr Rudd didn’t know whether Cllr Deynem was correct in thinking the proposed scheme would be for 300-beds. And he said the fire authority couldn’t base its strategy on ‘what the planning committee did the day before on another planning application’.

READ MORE
Chester student block dubbed 'oversized, brutal and ugly' gets permission

The new fire station at Powey Lane, Mollington.
A year ago Cheshire Fire and Rescue Service insisted there were ‘no formal plans’ for further changes affecting Chester Fire Station in response to a Chronicle enquiry based on rumours.

But this week a spokesperson said: “We are currently in the process of developing proposals that will see the construction of a new Chester Fire Station. This will replace the current facility which requires a significant upgrade.

“The new station will be located on the same site although funding for the project is expected to come from the selling off of some land that we no longer require. These proposals will of course have to go through the necessary planning procedures.”

READ MORE
Newtown could soon have more than 1,000 student residents
Mark Watkin Jones, chief executive of Watkin Jones, confirmed his company was involved but said the size and nature of the proposed scheme was not finalised. “We are considering our options. Nothing decided yet,” he said.

In September, a front page article in The Chronicle speculated the number of student beds in Newtown could soon total more than 1,000.


The Northgate Point 121-bed student housing scheme in Trafford Street, Newtown, which is now completed.
And Cheshire West and Chester councillors are clearly worried a ‘tipping point’ has been reached as indicated by the planning committee’s unanimous decision to reject the 150-bed student housing scheme next to the fire station by developers, Primus Property Group and Property Alliance Group, who only recently opened their 121-bed Northgate Point scheme across the road.

The proposal to demolish Oakbase House and erect a purpose-built complex was rejected by every single councillor against the advice of their professional officers who had welcomed the project.

Committee member Cllr Norman Wright said: “Student accommodation is at saturation point in the area.” Colleague Cllr Eleanor Johnson said there was ‘a surplus amount of student accommodation available’.

CWaC leader Cllr Samantha Dixon
CWaC leader Cllr Samantha Dixon
Council leader and visiting ward councillor Samantha Dixon told members Chester was in the midst of ‘a speculative free for all’.

She added: “The views and needs of the existing communities are not considered currently and we are heading further away from the mixed, balanced and sustainable community that is at the heart of our policy.”

hxxp://www.chesterchronicle.co.uk/news/chester-cheshire-news/chester-fire-station-make-way-12314087

[danpollard] 13/12/2016 13:44

This has to be the dullest share in my portfolio. Results in early Jan so hopefully it'll move one way.

[spoole5] 13/12/2016 09:23

Not quite sure why this isn't moving with all the positive news.

[spellbrook] 13/12/2016 09:02

agree...all will be revealed eventually, this would have moved considerably with the buying over the past week

[manrobert] 13/12/2016 08:08

lots f buying but does not seem to be reflected in price.

[manrobert] 09/12/2016 15:09

bt 4000 this morning hoping they will get rerated if they fulfil their promises

[alan@bj] 09/12/2016 10:30

Yes, thanks Spellbrook. Please keep posting them, they're certainly of interest.

[2vdm] 09/12/2016 10:21

Thanks for the updates SPELLBROOK. Much appreciated.

[spellbrook] 09/12/2016 09:48

Watkin Jones Group


Organised by Property Week on Wednesday 7th December 2016, the awards ceremony celebrates the student property market and its successes over the past year.

Fresh Student Living entered into ‘Operator of the Year’ category and we’re extremely proud to announce they have been awarded the WINNER by the judges.

Fresh Student Living have been recognised for their outstanding service, on-going hard work, sustainable growth and continuous investment in technology and innovation They were up against some of their biggest competitors: Kexgill Group, Prime Student Living, Campus Living Villages, The Student Living Company and Collegiate AC.

Congratulations!!

[spellbrook] 08/12/2016 09:05

Zeus Capital Q&A with Andy Hanson: Watkin Jones PLC
Posted by: Amilia Stone 8th December 2016

Zeus Capital Equity Research Director Andy Hanson caught up with DirectorsTalk to discuss Watkin Jones PLC (LON:WJG)

Q1: Watkin Jones announced the forward sale of two properties today, what does that mean for the business?
A1: The forward sale of the properties is really business as usual, Watkin Jones basically goes out and finds sites and then going to planning permission and then it looks to do a batch back sale when it gets planning permission and effectively forward sell the development to an institutional investor. Watkin Jones will then actually build and develop the plot so it’s very much in keeping with Watkin Jones’ strategy.

Q2: So what’s the relevance for investors?
A2: The two properties we’re talking about, one in Cardiff and one in Belfast, were already in our forecast so there’s no change in our forecast but what it does do is it increases the visibility on earnings in FY17. FY16 ended in September so we’re a couple of months into FY17, the forward sales nature of Watkin Jones’ model means it has great visibility so even though we’re only 3 months into the financial year I estimate that 65% of gross profit has already been secured for the current financial year.

Q3: How does the business look on valuation?
A3: The business is going to market in March so it hasn’t been listed for too long and I think that is reflected in the multiple. So we had a trading statement recently saying FY16 was in line with expectations so if we look forward at FY17 numbers you’ve got to remember that we’ve got that great visibility and it’s at FY17 already, the stock’s trading on a single digit p, less than 9 times and it’s also yielding over 5% of it at the current level. I would imagine as the markets get used to Watkin Jones’ business model and the great visibility that it sees you can see that 9 times multiple increasing to double digits to 12 or 13 times.

Q4: I think you touched on this but is there a decent yield?
A4: Yes, there is. As I said, the current yield is over 5% but what I would say on the yield is the business has a very strong balance sheet so I’m forecasting over £30 million of net cash for FY16. So on an earnings basis the dividend’s twice covered but when you actually look at the net cash on the business it’s more than twice covered with no sort of gearing risk. You’ve got great visibility on that dividend and they will grow it and potentially if they continue to generate cash as they have done historically there will be a point in time when Watkin Jones will have to look to do something with that cash and that could potentially mean a buy-back or a return of capital by way of special dividend to investors.


hxxp://www.directorstalkinterviews.com/zeus-capital-qa-andy-hanson-watkin-jones-plc/412718159

[spellbrook] 06/12/2016 09:19

Latest IC comment today
r21442 1UP

Watkin Jones (WJG:118.5p), a leading construction company specialising in purpose-built student accommodation (PBSA), has issued a reassuring pre-close trading update, and one that adds weight to market expectations of a 20 per cent increase in underlying pre-tax profits to £39.8m on revenues of £270m for the 12 months to end-September 2016.

The company completed 10 schemes encompassing 3,819 beds in the financial year just ended, and has 21 developments with over 6,800 beds slated for delivery during 2017 and 2018. The pipeline beyond 2018 is equally robust given that sites with capacity for over 2,000 beds have been secured, a quarter of which will be developed at a £100m scheme in Stratford, east London.

Bearing this in mind, the company has just forward sold three schemes to institutional investors in Glasgow, Cardiff and Belfast. These have a total of 1,161 beds and are slated for delivery in August 2018, ahead of the 2018-19 academic year. Forward selling sites reduces the working capital requirements of the company as the end-purchaser, usually a blue-chip institution, funds 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. Watkin Jones also enters into asset management contracts, usually for a seven-year term, with these investors when the properties are handed over on completion of the build.

Factoring in these sales, and others likely to complete, construction analyst Andy Hanson at house broker Zeus Capital anticipates that forward sales will account for 90 per cent-plus of his current year gross profit estimate of £59.8m by March, and materially underpin earnings visibility into 2018 and beyond. He predicts a 10 per cent rise in current year pre-tax profits and EPS to £43.6m and 13.7p, respectively, rising again to £46.7m and 14.6p the year after. On this basis, the shares are rated on nine times forward earnings. Another consequence of forward selling schemes is to reduce the capital Watkin Jones has tied up in the developments, one reason why the company is expected to increase its net funds from £36m to £66m by next September, a sum worth 26p a share. The strengthening of the balance sheet aside, the highly cash-generative nature of the business supports forecasts of a dividend per share of 4p in the year just ended, rising to 6.3p in the new financial year.

Trading on a single-digit forward earnings multiple and offering a 5 per cent-plus prospective dividend yield, I can only see investors warming to the investment case as Watkin Jones continues to build up a track record, evidence of which will be for all to see in next month's full-year results. The shares are well up on the 103p level at which I initiated coverage at the time of the Aim-flotation ('A profitable education', 3 April 2016), and the target price of 140p I outlined in my last article is now looking increasingly conservative ('High yielding cash rich small-cap gems', 29 September 2016). Buy.

[spellbrook] 06/12/2016 06:07

Plans to build flats for more than 600 students near Pittodrie Stadium could be given the go-ahead next week.

Watkins Jones Group has lodged plans to create hundreds of student rooms near the home of Aberdeen FC.


The complex would be built for a maximum of 619 students.

Proposals for 9 Merkland Road East and a site at 3 Pittodrie Street would involve the demolition of buildings.

The site is currently occupied by A&J Robertson’s granite warehouse and manufacturing facility. The firm is planning to move elsewhere.

A total of nine objections have been lodged against the development, with concerns including increased noise, disturbance during construction and a loss of privacy for overlooked flats.

Planners have urged members to approve the application subject to conditions including contributions towards bus facilities on King Street.

A report by planning officer Robert Forbes, said the new development would “further improve” Aberdeen’s appeal as an established destination for students.

It added: “Material considerations do not warrant refusal and the proposal would accord with the objective of sustainable development by securing redevelopment of a brownfield industrial site and by reason of its appropriate residential related nature and scale.”

The plans indicate that occupants would have access to communal outside areas including roof terraces, ground-level terraces and ground-level courtyards.

Members of the council’s planning committee will vote on the application on Thursday.

Meanwhile, councillors have also been urged to approve plans to redevelop former public toilets into a cafe.

The granite-fronted building, in the High Street in Old Aberdeen, dates back to 1932.

[spellbrook] 05/12/2016 20:23

Nice volume today....


Watkin Jones (WJG:118.5p), a leading construction company specialising in purpose-built student accommodation (PBSA), has issued a reassuring pre-close trading update, and one that adds weight to market expectations of a 20 per cent increase in underlying pre-tax profits to £39.8m on revenues of £270m for the 12 months to end-September 2016.

[gonedown] 05/12/2016 12:42

Paleje,I have read I C's article really encouraging. All the best Gone

[paleje] 05/12/2016 12:16

IC article on these today, reckon single digit PE too cheap and can only get better as confidence builds. Subscription so can't print it not so soon anyway.