Watkin Jones Share Discussion Threads

[2vdm] 24/6/2020 08:03

Interestingly in the RNS they said "Watkin Jones plc (AIM:WJG), the UK's leading developer and manager of residential for rent with a focus on the build to rent and purpose built student accommodation sectors" where before it always talked about student ccomodation first, presumably reflecting what they consider to be the way forward?

[irenekent] 23/6/2020 15:18

Its been to 200, 250 and nearly 300 in the past. How about 350 400, 500?

[farnesbarnes] 23/6/2020 11:15

True. But the directors won't be able to either unless the share price gets to 200, 250, 300. It's in their interest and other shareholders. If they can grow mkt cap from 410m to 800m, and double the value of my holding in that time, I don't begrudge them a mil for it.

[zangdook] 23/6/2020 11:09

The opportunity to pick up hundreds of thousands of WJG shares for 1p each is, I'm sad to say, not available to PIs.

[farnesbarnes] 23/6/2020 08:08

I understand irenes view in that the issuing of options at a time when the share price is depressed due to Covid 19 is somewhat opportunistic, but that same opportunity is also available to a pi right now. Where will we be in 3 years?

[zangdook] 23/6/2020 08:06

When I worked in a pub I didn't get 100,000 cases of whisky for 1p each to incentivise me to work. I got a fiver an hour or whatever it was in those days, but somehow I managed to turn up and do the work.

[2vdm] 23/6/2020 07:50

They are subject to performance, although it's not clear exactly what and would have been better to see.

[irenekent] 23/6/2020 07:16

More than 100p price fall, no div and they issue share options. Couldn't make it up!

[farnesbarnes] 03/6/2020 08:21

Short term if accumulation keeps building as it has the past week and half, I can see a crack at 180.

[cordwainer] 02/6/2020 18:47

Resistance kicked in with that drop just before the close. 147 was a good trade, I rue my hesitation to add.

[farnesbarnes] 22/5/2020 11:22

Had a sniff at 147 first thing. Nice timing for once!

[cordwainer] 20/5/2020 16:44

I'm at last starting to get interested in topping up. Looks like the market is assuming a collapse in new contracts for new build PBSA 2022 onwards (for WJG at least) along with a robust BTR division, and with the CEO hinting there may otherwise be opportunities in redevelopment of old student accomm including on-campus stuff.

However I'm afraid the outlook will not be picking up very soon, I believe the future impact on PBSA is real and significant.

I'm sitting on losses -18% including dividends with current holdings. I think the share price must be getting close to bottoming out but will take months if not years for a rerating. Although its very sensible to cancel the dividend I guess that's hitting investor confidence too. Main reason to buy / top-up now is I feel some confidence in the management given the difficult environment ahead.

[2vdm] 20/5/2020 15:48

Wish I had more available funds this week to buy at these prices.

[rat attack] 20/5/2020 14:22

Oh dear, we have gone from the darling to the paraih!! It will take 18 months to change that perception back again - reminds me of when they first came to AIM!

[skinny] 20/5/2020 13:11

FWIW Peel Hunt Buy 142.40 147.00 280.00 250.00 Reiterates

[2vdm] 19/5/2020 18:38

Good to see Richard Simpson CEO buying £75K's worth today at 152.46p. Helps show commitment/confidence as he now holds over £435K of WJG stock.

[2vdm] 19/5/2020 13:49

Thanks Ron M. Worth a read. I don't understand why the share price has dropped to this level. WJG seems to be in an enviable position compared to many quoted companies. OK, it has suspended its dividend (like the majority out there)but is still highly liquid, profitable and has a £390m pipeline. On top of that it's working in 2 specialied sectors and with a good reputation. H2 may be harder, but the pipeline ensures no lack of work for its loyal workforce.

[ron manager] 19/5/2020 09:11

Progressive research can be downloaded at hxxp://www.watkinjonesplc.com/results-centre/research/2020

DYOR

Ron

[its the oxman] 19/5/2020 09:04

Says well positioned for growth but on other hand 2H uncertainty re completions and ability to forward sell project pipeline. Hardly surprising. Clarity over students returning to Uni might help but overall it all seems very much in the price.

[2vdm] 19/5/2020 07:53

A great set of results and well done to the BOD. Profitable, cash generative, strong liquidity and £390m still to come from forward sold projects, not counting what has been applied for re planning permission. I just do not understand why the share price has dropped to this level. Overdone imo and will keep adding.

[skinny] 19/5/2020 07:23

.



Financial headlines



· 16.7% increase in revenue for the period versus the first half year of last year, underpinned by both student accommodation development and, increasingly, build to rent

· 6.4% increase in adjusted profit before tax2 to £26.6 million

· Robust gross margin for the half year of 22.6% (H1 2019: 24.4%)

· Strong liquidity position:

o £72.4 million gross cash at 31 March 2020 (31 March 2019: £57.9 million)

o £37.5 million net cash (after deducting site specific loans and HP creditors, but excluding IFRS 16 operating lease liabilities), up from £18.3 million at 31 March 2019

o £100.0 million RCF with HSBC renewed for five years to May 2025, of which £71.1 million was undrawn at 31 March 2020

· £390.0 million revenue to come from forward sold contractually committed pipeline FY 2020 & FY 2021

· As announced on 1 April 2020, the Group suspended the interim dividend and withdrew its financial guidance as a result of the current economic uncertainty and disruption caused by the COVID-19 pandemic. The Group will update the market on future guidance once there is more clarity on the impact of COVID-19 on the Group's activities and the markets in which it operates

· The Board recognise the importance of the dividend to our shareholders and are committed to resuming dividends as soon as conditions stabilise.

[2vdm] 18/5/2020 08:20

Results for the first 6 months to 31st March due out tomorrow. Just added, but taking the longer term view

[rivaldo] 15/5/2020 13:37

The IC says Buy in its annual review of the AIM top 100 companies by m/cap:



"38. Watkin Jones

Watkin Jones (WJG) is the UK’s largest developer of purpose-built student accommodation undertaken on behalf of institutional investors such as CBRE, AIG and L&G, which have forward purchased developments. As well as reducing development risk, that capital-light operating model has allowed the group to generate impressive returns on equity, which last year came in at almost 30 per cent, after adjusting for exceptional items.

At its capital markets day in November, management had targeted delivering around 3,500 student accommodation beds a year, up from 2,666 in 2019. However, following the implementation of social distancing measures, the group has stopped work on its construction sites, which will drag on completions. While management expects to report March half-year revenues and earnings in line with its expectations, it has withdrawn future financial guidance. It also said it does not intend to pay a half-year dividend.

However, during the first half Watkin Jones made progress on boosting its forward sales, including a 348-bed scheme in Bristol, for delivery in FY2021. That took its forward sold and secured student accommodation development pipeline to more than 7,000 beds. There is the risk that institutional demand for student accommodation assets will dry up over the next year, depending on how university attendance levels are impacted by social distancing measures.

The group has also entered the build-to-rent market, with developments making their first material sales contribution of £74m last year. After completing the first 159-unit build-to-rent development in 2019, the group had intended to increase annual delivery to around 1,000 units by FY 2023-24.

Watkin Jones has forward sold all of its 2020 developments and eight out of 10 of its developments scheduled for delivery in 2021 to institutional partners, which provides a certain degree of cash flow and earnings visibility. Management expects to incur costs in the range of £12m-£15m over the next two to three years for remedial work to comply with government advice on building cladding. However, it has ample liquidity, with £71m and a net cash balance after deducting site-specific loans of around £36m, with an additional £31m in undrawn debt from its revolving credit facility. Buy."

[its the oxman] 15/5/2020 09:13

Surely worth a punt at 145p

[2vdm] 12/5/2020 17:22

I don't agree if you are looking longer term. This is a well run company with a strong position and good reputation in growth sectors, student accommodation and buy to rent. I've been adding when I can and am taking a 3-5 year view,but agree this isn't a stock to trade. Just my view.