Watkin Jones Share Discussion Threads

[rivaldo] 21/1/2019 11:03

Newly tipped here:



"I believe Woodford is on far more solid ground with Watkin Jones, and I continue to rate this stock a ‘buy’. The company is a UK leader in multi-occupancy residential property, with a focus on the student accommodation and build-to-rent sectors. There’s good growth here, but I also think this positioning — together with the group’s accommodation management arm — could provide it with more resilience through the economic cycle than companies focused on some of the other areas of the property market.

Earlier this week, Watkin Jones posted record results for its financial year ended 30 September. Earnings increased 14% and its board upped the dividend by 15%. At the current share price, we’re looking at a valuation of 13.7 times trailing earnings, and a running dividend yield of 3.5%. I view this as an attractive investment proposition."

[skinny] 21/1/2019 10:00

The Company's Annual General Meeting will be held at 10:30 a.m. on Thursday, 14 February 2019 at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.

[rivaldo] 16/1/2019 11:50

The IC says Buy:



Extracts:

"Watkin Jones maintains momentum"

"IC View

Brexit doesn’t really feature in the group's demand forecasts because less than 7 per cent of students come from the EU, while the number of non-EU students continues to grow. Buy."

[rivaldo] 16/1/2019 11:26

Good to see Peel Hunt's upgrade to 250p, cheers.

Looking like a nice upwards trend here now.

[skinny] 15/1/2019 08:49

FWIW :- Peel Hunt Buy 216.50 240.00 250.00 Reiterates

[adelwire2] 15/1/2019 08:39

Excellent results with words like robust gross profit and improved dividends.

[edmonda] 15/1/2019 08:23

excellent results: FY18 turnover (£363.1m up +20.3% vs LY), PBT (£50.1m, +15.7%), EPS (16.0p, +13.8%), dividends (7.6p +15.2%, 6.6p) and net cash (£80.2m +95.5%, worth 31p/share) all ahead of our forecasts.

ED research now out with increased fair value, freely available here:

[battyliveson] 15/1/2019 07:51

Very good results. Strong chairman and management team, and in a good sector of property market. This is certainly a good hold for next couple of years.

batty

[rivaldo] 15/1/2019 07:40

Excellent results - "slightly ahead" of prior expectations. 16p adjusted EPS was well ahead of Edison's 15.2p EPS forecast.

Edison also forecast £60m net cash, so the actual £80m cash pile is a tremendous uplift.

Hopefully then we can expect 18p-20p EPS this year.

The 7.6p dividend is also above expectations (which were 7.4p).

With "excellent visibility" of future revenues, the announcement of the precise form of the vehicle for future BTR growth should provide further impetus to the share price.

[skinny] 15/1/2019 07:23

Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi-occupancy residential property assets, with a focus on the student accommodation and build to rent sectors, announces its annual results for the year ended 30 September 2018 ('FY18'). The Board is pleased to report a successful financial year with revenues and underlying earnings (which excludes non-recurring profit items) slightly ahead of its previous expectations.

more.....

[jonwig] 15/1/2019 07:21

Did I miss something? Mark W J has left the BoD altogether. I thought the plan was that he becomes a NED.

[skinny] 14/1/2019 14:32

Looking perky before tomorrow's update.

[rivaldo] 10/1/2019 10:01

Yep, looks like the share price is trending upwards again with results due next Tuesday.

Quite an impressive non-exec appointment today:

[santangello] 08/1/2019 16:19

Nice pre results breakout attempt.........

[skinny] 08/1/2019 15:40

15 Jan 2019 Preliminary Results for the year ending 30 September 2018.

[skinny] 07/1/2019 20:21

Exactly that - its the result of the pre-market auction and sets the opening price for SETS stocks - just as the one at 207p @16:35:26 set the closing price in the closing auction.

[jonwig] 07/1/2019 19:29

It was market 'UT' - an uncrossing trade, which is unusual timing, certainly!

I'd say SETS trading (marked 'AT') is prone to producing odd effects, and the first hour of trading does as well.

[adelwire2] 07/1/2019 19:03

Excuse ignorance but why would sale of 1 share drop share price by 10p at 8am this morning?

[jonwig] 03/1/2019 07:17

The new CEO began work yesterday. I would expect some statement about the future of the PRS holdings, and whether they will be hived off into a separate quoted vehicle.

Something similar happened with Sigma Capital and the PRS REIT. However, PRSR is now trading at a NAV discount so I'd wonder how the split will be structured. In fact, all the residential rental REITs are a bit lacklustre.

FY results on 15 Jan.

[rivaldo] 30/12/2018 07:49

Tipped here:



"Imperial Brands’ projected dividend yield for the trading year to September 2019 is running above 8%, and City analysts expect Watkin Jones to pay a dividend yielding close to 4% for the year to September 2019. So, at first glance, both companies are good candidates for a dividend-first investing strategy.

Watkin Jones develops and constructs multi-occupancy properties focusing on student accommodation and build-to-rent sectors. It’s a good business and the firm has a record of growing revenue, normalised earnings, operating cash flow, and the dividend. City analysts following the firm expect further annual advances in those measures over the next two years or so. Meanwhile, earnings cover the dividend payment more than twice, and there’s decent support for earnings from operating cash flow. In October, the firm said in a trading update that it has a “strong” development pipeline that provides “excellent” future earnings and cash flow visibility.

Despite the macroeconomic headwinds blowing from Brexit, and the general nervousness in stock markets that we’ve been seeing, there’s no sign that Watkin Jones is suffering any weakness in its operations, and the outlook is robust. I think the firm could be a great example of Neil Woodford’s current-declared strategy of buying out-of-favour UK-facing cyclical firms because, to him, they look undervalued."

[jonwig] 20/12/2018 17:27

WJG may be zigging and zagging, but in these markets it's not sagging. I guess the new CEO will be in charge of a decision on the PRS assets. On student assets, both ESP and DIGS have been pretty steady unlike much of the property sector.

[ditchsid] 20/12/2018 17:14

You're right Steve!
Or is it because there are more shares in issue and his holding is diluted?

[steve3sandal] 20/12/2018 16:26

Other way round I think.

[2vdm] 20/12/2018 14:29

Woodford Inv Trust increasing it's holding slightly from 12.98 to 13%.