Watkin Jones Share Discussion Threads

[jonwig] 17/7/2018 15:46

@ Clausentum - nothing last year: looks like a long summer lull!

Share price in doldrums for past nine months. Worth remembering that it's only ever met expectations, as far as I can remember. Despite broker target prices, we might need it to beat them.

Also, Hardman had a long research note on housebuilders recently which included WJG - not surprisingly the most expensive on a PTB metric. Whilst I don't think the comparison is fair, a lot of investors insist on pigeonholing companies, if wrongly.

[clausentum] 17/7/2018 15:28

Are we likely to get any update before the pre-close trading statement end October??

[2vdm] 17/7/2018 13:36

I certainly don't know why the share price opened so low. I bought 6k sub 190p and only wish I had more cash available. This is trading in a fairly narrow range and I think is stbilising around 190-198. Be good to get an update from WJG soon.

[adelwire2] 17/7/2018 12:32

1st thing seemed like lots more transactions than usual.

[2vdm] 17/7/2018 08:09

what activity?

[adelwire2] 17/7/2018 08:05

Why all the activity first thing?

[cordwainer] 12/7/2018 16:55

Theres been an update from Telford Homes BTR company (TEF) and I notice it has a much lower historical p/e ratio. Wonder if that bodes anything for WJG's p/e the more its BTR business grows?

[2vdm] 12/7/2018 16:33

I'd say it's a buying opportunity. Just needs a bit of coverage and it'll be back up again.

[adelwire2] 12/7/2018 10:32

Share action disappointing

[rivaldo] 04/7/2018 10:35

Time has passed since the SCSW Buy rec in the last issue, so here's their conclusion - at the current 200.5 the P/E is 13.0 dropping to 12.5:

"Prospective PE drops to 13.7 next year

First half revenues increased by 18% to £158m, mostly driven by growth in student accommodation. Pretax profit was ahead by 12% to £23.6m, with the gross margin flat at 21.8%. Eps were up by 13% to 7.6p. The balance sheet strengthened further with £38m cash, which is forecast to rise to £75m by the year end (September).

Peel Hunt forecasts £48.6m pretax profit / eps 15.4p for the full year with a target for next year of £50.5m/16p. The shares therefore trade on a 2018 PE of 14.2, falling to just 13.7 next year. I am a buyer."

[rivaldo] 25/6/2018 07:34

Featured on Citywire this morning as one of four shares that professional investors are buying:



"Watkins Jones (WJG)

Who’s trading? Citywire A-rated Henry Dixon and Jack Barrat

The trade The managers of the Man GLG Undervalued Assets fund upped their stake in student halls builder Watkins Jones from 2.1% of shares to 5%, worth £26 million at a share price of 206p.

How have the shares performed: After listing at 100p a share in 2016 the business rapidly rerated last year to a November high of 245p. However, after a dip the share price is essentially flat over the last 12 months.

What does the company say: Watkins Jones cheered a ‘successful’ first half in May, with both earnings and pre-tax profit up almost 12%. It has recently diversified into build-to-rent, signing a £68.5 million deal to construct residential properties in Reading alongside fund management group M&G. It expects to deliver 1,500 homes to let by 2023.

What’s the outlook? Jefferies rates the company on a price target of 250p. Management of the business recently passed out of the Watkin Jones family for the first time in its 227-year history, after the company recruited Richard Simpson from Unite, who was reportedly ‘instrumental’ in building its student business. "

[spellbrook] 20/6/2018 22:05

PLANS LODGED FOR NEW STUDENT ACCOMMODATION SCHEME
20 Jun 2018 Yorkshire Property Stephen Farrel


A development of almost 300 student flats could be built on a site in Sheffield city centre if newly-submitted plans are given the green light.

Fraser Morgan, supported by David Cox Architects, has submitted an application for the redevelopment of a site on Allen Street.

Under the proposals, the existing warehouse and office properties would be demolished and a new building of between five and seven storeys constructed.

The scheme would comprise 289 self-contained studio apartments for students. It would also feature a large reception, study rooms, cinema, gym and roof garden.

The applicant has previously held pre-application discussions with the council and other consultees which have informed the proposed design.

A design and access statement submitted as part of the application said the development would meet a need for additional accommodation for student at the University of Sheffield and Sheffield Hallam University.

It added that "student well-being and the student experience" had influenced the design and layout of the proposed building.

The site is adjacent to the new-built 'Brassfounders' student accommodation development, which measures up to eight storeys.

Fraser Morgan has previously developed student accommodation schemes in Birmingham, Lancaster, Luton, Newcastle and Stoke.

A separate planning application has also recently been submitted by Watkin Jones Group for hundreds of student and private rented sector (PRS) apartments on a site on Rockingham Street

[shaker44] 20/6/2018 08:50

but you may be correct nevertheless. !!

[jonwig] 20/6/2018 08:39

shaker - tongue was firmly in cheek!

[shaker44] 20/6/2018 08:29

Ha. maybe. good spot. so is he shuffling shares, buying more maybe in trust. or coincidence.

[jonwig] 20/6/2018 08:23

GLG Partners - wealth management arm of Man Group. Most of their clients will be UHNWIs. (Including Mr MWJ himself, maybe?)

[rivaldo] 20/6/2018 07:07

RNS - good to see a new major institutional holder, with GLG Partners buying and going above 5% with 12.77m shares:

[rivaldo] 18/6/2018 07:42

News that the flow of students from Asia and elsewhere is likely to continue:



"Home Office relaxes visa rules for Chinese students

Thousands more Chinese students could be about to apply to British universities after the Home Office decided to stop checking that they meet educational, financial and English language skill requirements to study here....

Under the reforms, published yesterday, China and ten other countries were added to a list that the department considers “low risk” for issuing Tier 4 student visas. More than 95,000 general students and 4,800 child students coming to independent schools were granted such visas in the year to March.

The list of countries, which already included Australia, the US, Canada and New Zealand, now features China, Indonesia, Mexico, Thailand, Cambodia, Bahrain, the Dominican Republic, Kuwait, Macau, the Maldives and Serbia.

The Chinese already top the list of study-related visas with 88,000 in the year to March, up 15 per cent in a year.

The changes, which come into effect on July 6, aim to make it easier for students to come to the UK.

etc"

[glaws2] 16/6/2018 07:49

Anyone know whether this is a new scheme in Sheffield or a re-submission of planning on the previously announced scheme (which had already got planning for 62 units) ?

[spellbrook] 15/6/2018 20:01

HUNDREDS OF FLATS PROPOSED FOR NEW SHEFFIELD SCHEME

[rivaldo] 15/6/2018 14:02

Nice:



"Round Hill to forward-fund Watkin Jones’ Project Colorado for expansion plan

By Samantha Partington|
Fri 15 June 2018

Investor poised to forward-fund package of seven student housing developments

The Project Colorado portfolio, which was put up for sale in February, comprises 2,598 beds across properties in Wembley, Waltham, Bristol, Glasgow, Coventry and Chester.

If completed, the deal would take Round Hill a significant step closer to its target of 20,000 beds in the UK, Ireland, Portugal, Netherlands and Spain under The Nido Collection brand by 2020. Round Hill, which bought The Nido Group from Blackstone in 2012 for £415m, currently has a portfolio of more than 2,500 beds in operation as well as 5,000 beds in various stages of development."

[shaker44] 14/6/2018 16:47

if he doesnt listen to the major shareholding family he wont last long!!
I think he will work out well but I am concerned his secret ltip is a golden hello rather than performance driven as it should be

[cordwainer] 14/6/2018 16:22

What price then to poach a Unite director ? I think I would have preferred a less high profile successor with less pre-conceived ideas, more minded to listen to Mark Watkin, and less likely to require a hefty bribe.