Watkin Jones Share Discussion Threads

[11_percent] 31/1/2018 10:13

It must be all good.

[skinny] 31/1/2018 10:03

Here's for the article in post 1326.

[jonwig] 31/1/2018 09:48

Octopus have bought another 3m shares. VCTs are having another bumper year and Octopus are among the biggest funds.

[its the oxman] 24/1/2018 08:16

Nice write up from ST. Suggests every chance of revisiting 250p in not too distant future.

[rivaldo] 23/1/2018 08:37

Cheers penpont, beat me to it :o))

[penpont] 23/1/2018 08:08

Update from S Thompson in yesterdays IC:

Watkin Jones built on solid foundations

Shares in Watkin Jones (WJG:207.5p), a construction company specialising in purpose-built student and private rented sector (PRS) accommodation, have been on a tear since I first recommended buying at 103p when the company floated on Aim ('A profitable education', 3 Apr 2016). I last advised running profits at 223p ahead of this month’s full-year results (‘Trading plays’, 9 Oct 2017), and the price subsequently hit the 250p target I highlighted. The results certainly didn’t disappoint, but the share price has since pulled back on news that chief executive Mark Watkin Jones, who has so successfully led the company, is stepping down for personal reasons. The caution is overdone.

In the 12 months to the end of September 2017, Watkin Jones’ underlying pre-tax profits and EPS both rose by 13 per cent to a record £43.3m and 14p, respectively, on revenues up from £267m to £302m, reflecting the completion of 10 student accommodation developments. Cash generation was mightily impressive, driving net funds up by more than a quarter to £41m. The pipeline is impressive, too, as all 10 student accommodation developments scheduled for delivered this year have been forward sold, as have 85 per cent of the targeted beds for the 2019 financial year. Furthermore, the company’s activity in the build-to-rent market is gathering pace. Watkin Jones now has five development sites targeting 1,500 units, having completed its first scheme of 322 units in Leeds.

Reassuringly, the forward pipeline de-risks forecasts which point to EPS of 15.2p this year, and 16p in 2019, so underpinning expectations of a further 10 per cent hike in the payout per share to 7.3p and 8p, respectively. Also, as more developments complete, net funds are forecast to swell to £74m by September 2018, a sum worth 25p a share. This implies the shares are attractively rated on 12 times forward cash-adjusted earnings and offer a prospective dividend yield of 3.5 per cent. Buy.

[irenekent] 22/1/2018 18:39

llwyd,
It is what I suspected. Bangor is pretty small as a town and I imagine he will want a break from the area to get his head together and make a new start. Quite a situation to be in what with the pressure of the flotation as well. I feel sympathy for him and we should wish him well.

[irenekent] 22/1/2018 18:39

llwyd,
It is what I suspected. Bangor is pretty small as a town and I imagine he will want a break from the area to get his head together and make a new start. Quite a situation to be in what with the pressure of the flotation as well. I feel sympathy for him and we should wish him well.

[jonwig] 22/1/2018 16:14

llwyd - thanks. (Bangor a small village, then!) That shows that the demand for a more detailed RNS than mere "personal reasons" is out of place.

On share sales, in the the interview he said the family shares would be retained. That's not a regulatory statement, I guess. And a settlement need not involve actual sales: transfers are equivalent.

[shaker44] 22/1/2018 11:26

If that's the situation then I guess he will need to sell quite a few wjg shares.!!

[llwyd] 22/1/2018 10:44

Mark W-J is in the middle of, or emerging from, a divorce so that always takes a toll. He does have a home in the W.I that can get him out of Bangor!!

[jonwig] 22/1/2018 10:36

irene - possibly. Actually he isn't a 'natural' public speaker. His manner was very much the same as at last year's AGM. Not stressed, but not really enjoying the publicity. There's another video from last week which shows him a lot more upbeat:



The interview didn't add very much to the RNS - yes, they expect to sell the PRS at a profit (which I expected him to say), and that's the new speculative element I've mentioned before.

Are you right about the taxman? Won't there be business tax relief if his stake is sold? And some is in trust. I'm unsure, not being lucky enough to care!

For me they're a hold until we see how management changes develop.

[irenekent] 22/1/2018 09:29

He doesn't look very happy on the video. I think he looks pretty stressed and as others have said probably the vast changes over the last year or too have put him in a place where he probably would rather not be. After 15 years and with the fulfilment of the flotation I think I would be looking to reap some of the benefits of what I had achieved. I doubt if he needs the money with a substantial personal and family stake in the company and the prospect of a generous and increasing dividend. After a certain point the only winner is the taxman. Even if he doesn't want to go too far from Bangor (not the most exciting place on Earth)a change is always good -perhaps the Isle of Man beckons? No inheritance tax, capital gains tax, and lower income tax and just over the water from Bangor.

[its the oxman] 22/1/2018 08:37

Expecting a gradual recovery toward 230p. Div to take soon as well.

[shaker44] 19/1/2018 11:24

Hardly a commitment, on either side!-very odd

[shaker44] 19/1/2018 11:23

Hardly a commitment, on either side!-very odd

[glaws2] 19/1/2018 11:22

Hand on tiller; from the RNS "The Board is keen to retain the benefit of Mark's valuable knowledge and experience and the intention is that, following the transition, the Board will look at how this might be achieved, including the option of him becoming a Non-Executive Director of Watkin Jones."

[shaker44] 19/1/2018 11:18

Not sure how he can keep a hand on the tiller without a board role.
He has put wjg in play, maybe by design?
The family and a small handful of institutions will decide.
Worth staying on board for the takeout maybe...

[glaws2] 19/1/2018 11:10

I suspect a lot of the problem is that the company is headquartered in Bangor, North Wales (where I presume his family home is) and no doubt since it listed it has meant that he has had to spend a lot of time away in London. Travel out of north Wales is diabolical. He is obviously wealthy so why not let others to the hard graft and have a more relaxed lifestyle whilst keeping a gentle hand on the tiller.

[shaker44] 19/1/2018 11:04

Many thanks for the link. Just listened and not really reassured. A family business for many many years where the family owns 30%.
A relatively young CEO says he wants a better home work balance. Laudable and understandable. But there would be many ways to achieve that without bailing out totally. And in answer to possibly staying as a non exec: 'we will see what the future holds!!
Put yourself in his position, in this very successful business with you family having £160m+ stake: would you walk away? Or restructure? Strengthen the team so you can gain a bit more family/leisure time.
Seems very unusual and rather odd. And has caused the family holding to decline by c15m£.
Or am I overlooking something here....??

[quepassa] 19/1/2018 10:49

Thank you Glaws.

Equity Development ask the question straight out about his resignation and Mark WJ expands and also re-assures that they have no intention to sell down family holding.

Well worth watching in full.

ALL IMO. DYOR.
QP

[glaws2] 19/1/2018 10:38

Equity Development interview here :

Some re-assurance that are looking to forward sell BTR developments.

[compnews1] 19/1/2018 09:10

Woodford has increased its share more than 1% which is significant for any institution. I know Woodford fund has not performedas his stocks are defensive stocks but I have a feeling that this may be a good sign. Time to go in.