Watkin Jones Share Discussion Threads

[skinny] 04/6/2018 10:15

I've emailed the company to see if they can give further information.

[jonwig] 04/6/2018 08:24

Probably very generous. It's the new LTIP described in the Notice of AGM (all resolutions were passed ... surprise!). I can't seem to find the actual performance condition anywhere, though! You'd think they'd make it prominent.

His total pay last year was about £400,000. MWJ's was £650,000. Somewhat elevated.

[cordwainer] 04/6/2018 07:17

generous ..?

[rivaldo] 03/6/2018 07:31

Good to see WJG's Aberdeenshire project "progressing well":



"Two developments are progressing for Superscheme Limited, part of the Watkin Jones Group. Caledon Court student accommodation, adjacent to the main RGU Campus at Garthdee, will see 199 new student beds made available with a mix of studio flats and apartments. Scheduled to complete this summer, ahead of the new university term, work is progressing well on-site with the show flat now open for viewing.

A second project for the same client will see the Pittodrie Street student community grow further with development ongoing for an additional 618 beds. This project will be completed in two phases with Block B scheduled for the 2018 University year and Block A in the summer of 2019."

[jonwig] 03/6/2018 06:46

Goodpick - correct, I worded badly. 'Derisk' its involvement, then. The question arises: why aren't there insitutional buyers on the scene already?

I see Grainger is going big on PRS, but with a stress on 'affordable'.

[goodpick] 02/6/2018 22:13

Jonwig i wouldnt have read that launching a REIT means Watkin Jones want to exit the sector, it is more likely to confirm that as with Student that holding assets isnt their business model and a REIT could buy those assets from Watkin Jones while they continue to build them?

[rivaldo] 31/5/2018 23:19

Nice finish today, presumably partly due to the £477,000 buy at 218.5p reported after the close.

Hopefully bodes well for tomorrow too.

[jonwig] 31/5/2018 16:03

adelwire - simply because it was not unallayed good news. Of course Equity Development put out a bullish note - they were paid to do just that! And of course the CEO gave an upbeat interview: tell me one who doesn't. And of course most posters, when they hold a share, want to put the best polish they can on it.

Perhaps I'm just perverse, but I buy a share when I feel the prospects are net positive. Once I hold it, I take the opposite, sceptical standpoint: 'What can go wrong?' Hence, on the H1 results, I actively looked out for possible pitfalls - see posts #1478, 1487-1489. That doesn't mean I sell - we're not there yet. But the prospective float-off of a REIT of the PRS assets is by no means a sure thing, and suggests they keenly want an exit from that sub-sector.

[adelwire2] 31/5/2018 15:21

Confused.com We have what I see is gd news and share drops 7p. Recovering now. Why and why?

[santangello] 30/5/2018 15:53

Yep, seen tha Rivaldo, a meaty investment.

Alwaysa nice fillup to see institutional money joining the PI's.

[rivaldo] 30/5/2018 15:50

RNS today - good to see Woodford increasing above 14% with 35.8m shares:

[2vdm] 30/5/2018 15:13

Edmonda - Well spotted and good to see that both MWJ and Phil Byrom quietly confident and clearly understand the business and where it's heading.

[edmonda] 29/5/2018 15:36

full 20 minute interview after the recent results with CEO, Mark Watkin Jones, and CFO, Phil Byrom - freely available on this link:

[cordwainer] 29/5/2018 14:55

impressive analysis Adam, but i think this visibility and good dividend means some good value remains for now. It's a natural alternative to housebuilders and real estate.
I would have thought that combining BTR with student accomm provides some risk offsetting, that there's bound to be some attrition in unit numbers through the planning processes (surely WJG have their own criteria they won't decide every last project is worth their while).
Regarding managing beds, that's like a services sector role I'm not sure that's one of WJG's core strengths but i suppose its a bit more diversification in times of weakness in building and selling.

[2vdm] 29/5/2018 14:44

AdamB1978 Personally I think this has a bit further to go, but there's nothing wrong with your logic.Where you are wrong is in saying that doubling your investment in 12 months is "a decent return", it's a great return and possibly a wise decision.

[2vdm] 29/5/2018 14:44

AdamB1978 Personally I think this has a bit further to go, but there's nothing wrong with your logic.Where you are wrong is in saying that doubling your investment in 12 months is "a decent return", it's a great return and possibly a wise decision.

[adamb1978] 29/5/2018 11:50

Sold my small holding this morning; roughly doubled my money on them so a decent return. Reason for exiting is that I see the valuation as being fully up with events particularly given that the risk around earnings growth seems to have increased due to:

- student accomm delivery pipeline slipping and somewhat buried in the detail - now talking about 2723 beds in FY19 whereas at this point last year they said it would be 3545

- will now manage 14821 beds in 18/19 down from the 16,185 at the start of the year (impacted by the sale by the owners of the property, but still hits SJG's recurring earnings)

- now contracted to manage 17053 by FY21 whereas before they were contracted for 19,532 by FY20

- the BTR risk flagged above

I'm also in the process of de-risking and holding greater % of cash or near-cash investments given my macro views, but felt like WJG is now fully up with events given the above risks to the downside.

All the best for those who continue to hold.

Adam

[its the oxman] 29/5/2018 10:46

Agree , interview bodes well and gives confidence that there is plenty more to go for here. Hope to see a gradual move back toward 250p now.

[quepassa] 29/5/2018 10:32

FANTASTIC WJG VIDEO INTERVIEW on EQUITY DEVELOPMENT just released this morning.

Fiona Bruce MOVE OVER!



ALL IMO. DYOR.
QP

[adelwire2] 28/5/2018 20:13

Quepassa totally agree. Zoooom

[jonwig] 28/5/2018 12:42

@ AdamB - I'm not sure who I'd compare WJG to, given its product mix and forward-funded business model! Certainly not your pure housebuilders (though WJG does do that, a bit), and probably not property developers/ renters.

I did think it would apply its student property experience to BTR, but part of that is financed on its own balance sheet, and I suspect it might be getting cold feet about that aspect, given its exploring of floating a separately-listed vehicle. Planning problems have been briefly aired, and we really don't know whether this is a real worry which they aren't altogether happy with.

At some point the cycle will move on with student buildings less in demand or less profitable. As a "steady earner" I can see the government target (if you can call it that) of 300,000 homes a year together with councils being allowed to borrow will lead to forward funding of affordable housing on a large scale. Maybe we'll need to wait for Mr Corbyn to ditch nimbyism and create the ideal business environment for that! (Actually Scotland is already getting on with this, and a local housebuilder, Springfield Properties [SPR] is doing well out of the arrangement.)

[adamb1978] 28/5/2018 09:59

Hello all

Finally go around to reading the interims - continued steady progress and looks like the full year will continue the trend of EPS growth in the high single digit to 10% type area.

I'd be interested in hearing from people who they benchmark WJG against in terms of valuation and performance. Given the financing model of their developments, its not really a property company and equally the sector which they work in is underpinned by long-term trends and cycles which limits the number of peers. Welcome any thoughts, even if the peers aren't perfect.
Thanks
Adam

[davebowler] 25/5/2018 14:35

Watkin Jones (WJG)
Onwards and upwards | Equity Development, 22 May
Free Access
""Success breeds success" is a crucial, yet under-appreciated, concept when it comes to investing. You see, great companies devote substantial amounts of time/resource nurturing and maintaining high-performance cultures. Management obviously plays an enormous part – walking the talk, motivating employees, recruiting the right people and challenging the status quo..."

[quepassa] 25/5/2018 14:07

Before the surprise announcement about MWJ's departure in November , the share price had hit 250p.

Given that:-

1. A heavy-hitter new CEO has now been recruited and announced
2. The generalised small-cap sector weakness of the early part of 2018 is fast dissipating
3. An excellent set of results has just been announced by WJG
4. The dividend has just been increased.
5. Several price forecasts are unanimously positive and higher than today's price ,


personally I see little reason why the WJG share price shouldn't re-test and surpass the November 250p in very short order.

GLA.

ALL IMO. DYOR.
QP

[cordwainer] 25/5/2018 13:10

Todays sells have caught up with the buys now, might be encountering some resistance in the price action. Still a 'buy' though.