Watkin Jones Share Discussion Threads

[flagon] 16/6/2016 13:06

The admission document can be found on their homepage.

hxxp://www.watkinjonesplc.com/~/media/files/w/watkin-jones/investor-docs/results-and-presentations/watkin-jones-admission-document-final.pdf

[fugwit] 16/6/2016 12:52

I have been trying and failing to find the admission document for WJG. Have looked on their site, investegate and lse to no avail. Does anyone have a direct link to it please. TIA.

[tromso1] 14/6/2016 12:22

Simon Thompson article just out.

[rivaldo] 10/6/2016 09:19

WJG have been tipped in the IC - it's free to view, so I'll just copy the conclusion:



"Analysts at Peel Hunt are forecasting adjusted pre-tax profits of £38.6m for the year to September 2016, giving EPS of 12.1p (£31.3m/9.7p in FY2015).

IC VIEW:

With huge earnings visibility and offering a gateway for institutional funds into the private rental sector, Watkin Jones is also expected to generate higher management fees as more sites are completed. Its shares trade on just under 10 times forecast earnings, which leaves the builder sitting in the middle of its peer group. We initiate coverage with a buy."

[spellbrook] 10/6/2016 08:28

Watkin Jones says student homes help tackle housing crisis


hxxp://www.walesonline.co.uk/business/business-news/watkin-jones-says-student-homes-11450346

[shanklin] 10/6/2016 08:07

I suspect its not quite as exciting as CRAW, but it looks like a really strong, sensible, sustainable business with strong solid growth in revenue and earnings highly likely. IMHO.

[invisage] 10/6/2016 08:04

MartinProbably worth calling the company to get clarification?Carmensfella holds this so I wonder if long term it can be a Crawshaw.

[shanklin] 10/6/2016 07:54

P.S. Looks like a very good long term hold to me.

[shanklin] 10/6/2016 07:54

Invisage

Yes, I am aware they have other strings to their bow albeit I only really looked at the part of the presentation you highlighted.

Hence me wondering why they have so singularly linked "target income" to "beds contracted". I guess (because they don't explicitly state this) that this only relates to the student accommodation part of their business. And they are not making such specific predictions elsewhere?

I guess we will need a broker report to extrapolate widgets, in multiple business strands, into sales and profitability going forward.

Thank you again for the link which I will look at in more detail later today.

Cheers, Martin

[invisage] 10/6/2016 07:36

MartinRead their presentation. They are targeting more than student accommodation, it is their recurring income from the managed property business that I like.It will help pay that 6% dividend yield.Also good growth is their residential business.

[shanklin] 10/6/2016 07:25

Invisage

Thank you for the link

It would be quite helpful to know what income is being targeted going forward and I have no idea whether "beds contracted" is the best/only operational measure of this. Is the group purely looking at student accommodation going forward.

Thoughts welcome as I am not too bothered how many widgets WJG make each year unless that is the best and only operational predictor of future growth in revenue and earnings.

Cheers, Martin

[rivaldo] 10/6/2016 07:22

A nice plug for WJG in today's Tempus column in the Times:



"And finally . . .

Without taking away from the achievements of those operating in the sector, it has been difficult not to make money out of providing student accommodation in recent years. The university population has been growing, not least students from overseas. Watkin Jones, which has provided 28,000 beds across 88 sites, arrived on AIM in March and the shares are comfortably ahead of the £1 float price. Confident half-way figures show that the vast majority of beds in the pipeline have already been sold."

[glaws2] 10/6/2016 06:31

Thanks jonwig & Ben

[invisage] 09/6/2016 20:18

Interesting presentation following results today :

hxxp://www.watkinjonesplc.com/~/media/files/w/watkin-jones/investor-docs/results-and-presentations/interim-results-presentation-for-the-six-month-period-ending-31-march-2016.pdf

Some points to note

- Interesting to read the following :

• FY16 - target income 100% contracted. 8,310 beds contracted
• FY17 - target income 96% contracted. 12,663 beds contracted
• FY18 - target income 87% contracted. 16,660 beds contracted
• FY19 - target income 79% contracted. 16,913 beds contracted
• FY20 - target income 70% contracted. 17,924 beds contracted

They grew student accommodation profits by 26% in 1H and 150% increase in Residential revenue.

Gross margin on Fresh Student living is 86% and the number of beds will more than double by 2020 from apporx 8000 to 18000m gross profit was £300k from 1 month so that is £3.6m per year or £7.2m+ by 2020.


Slide 14 is interesting showing the end to end model of their student business.

[invisage] 09/6/2016 19:46

Loads of jobs advertised on their website :

hxxp://www.watkinjones.com/careers/latest-vacancies/

[ben12358] 09/6/2016 16:50

Growing income stream from management of let properties also...

[ben12358] 09/6/2016 16:28

Just remembered- they are moving into the rented housing sector also...

[ben12358] 09/6/2016 16:26

Glaws- if you hold the view alot of the student halls of residence were built in the 60s and 70s it's probable alot of them will be unfit for purpose now and so will need demolishing and rebuilding. That was my thought with this one, anyway....

[jonwig] 09/6/2016 16:16

Glaws - operators are paying ever higher prices for new student accommodation. For example, Empiric has just bought a property (not quite new-build) for £140,000 per bed. A year ago, prices averaged below £100,000 per bed.

There's strong competition for the secure income these properties generate. Some smaller operators won't want to do their own management (hence "Fresh") and as you say PRS looks here to stay - for a good while, anyway.

[glaws2] 09/6/2016 15:30

Perhaps I have got the wrong end of the stick but I'm struggling to see where the growth will come in 2017 in their main revenue stream of student accommodation development. For FY2016 they are scheduled to deliver 3500 beds - but for FY2017 this drops to 3000 before returning to marginal growth of ~3600 in FY2018.

I appreciate that there will be growth from the Fresh and PRS segments.

Any views ?