Watkin Jones Share Discussion Threads

[rivaldo] 01/8/2016 12:34

Cheers spellbrook. Share price looking good now - new highs per the thread header chart.

[spellbrook] 28/7/2016 18:36

Recruiting , lots happening..

With some exciting developments in the pipeline...


Assistant Quantity Surveyor
Location: Bangor
Are you a passionate, determined individual with a drive and passion to succeed? Our Student Accommodation North West and Midlands division is looking for an additional Assistant Quantity Surveyor to join their expanding team!
With some exciting developments in the pipeline, you would be involved in construction projects that are innovative and distinct in their craftsmanship. For example, take a look at our sensational development in Birmingham, which is currently being built by our Student Accommodation North West and Midlands team, which will consist of two linked buildings, one of 17 storeys and the other 11 storeys in height, as below;

[rivaldo] 28/7/2016 16:20

Nice end of day rise.

[alan@bj] 27/7/2016 08:04

Decent half year results from Unite yesterday, but at the current share price they yield only 2.6%, significantly less than WJG.

[2vdm] 26/7/2016 09:18

Me too after digesting the pi interview (see post 190 above). I like both the business model and the mngt here. They seem to know exactly what they are doing and I will top up as share price and funds are available as this should be a sound mid - long term investment

[nw99] 25/7/2016 13:34

Bought more here

[rivaldo] 25/7/2016 12:07

Bouncing nicely, with buying at the full 111p offer price now.

[spellbrook] 21/7/2016 20:59

Peel Hunt suggest £1.30p


hxxp://www.com-unik.info/peel-hunt-reiterates-buy-rating-for-watkin-jones-plc-wjg/

[jonwig] 18/7/2016 17:43

serratia - what's worrying is why they decided on pulling out. Students aren't part of immigration figures, nothing will change for at least two years and we are a nation which respects the law and rights more than most others.

And then, the large REITs (ESP, DIGS) which run student accommodation don't rely on EU or undergraduates to fill their rooms. I think we need more information on this before making a judgment.

[serratia] 18/7/2016 17:28

Don't know if this is significant. Aberystwyth uni students cancelling.

[tomps2] 18/7/2016 17:18

Hi 3800. No, plane ownership wasn't mentioned. I wasn't aware they did.

[3800] 18/7/2016 15:34

Thanks for posting up the Mello presentation, I've just watched it. One thing I just have to ask did the justification for owning a plane get a mention later?
3800

[tomps2] 18/7/2016 11:58

Video of Watkin Jones presentation at Mello, by CEO, CFO and Investment Manager



A brief overview of this comprehensive presentation:

Mark Watkin Jones, is the final family member in the company after many generations. In 1990 Mark opened an office in Chester. A contract to build 30 Premier Inn’s for Whitbread launched him. They then did contracts for Tescos and other supermarkets followed. They started work on student accommodation in 1999, which has since become a core part of the business.

In 2008 WJG had £160m bank debt with HBOS, when Lloyds took over the debt, they wanted their money back. This forced WJG to find another source of finance. This is when they started working with the institutions to provide funding, providing them with exposure to property as an asset class and the yield it provides.

Today WJG are most focussed on student accommodation (84% revenue and 94% profit), with more scope to grow in the Private Rental Sector. Earnings are highly visible and they have low CAPEX requirement.

At every stage WJG keep risk and leverage to a minimum. They have a carefully mapped out model, the stages are: site procurement and planning; transaction and funding; construction and delivery; scheme management. They want 20% return on capital employed. Most of the costs are known in advance, and they know the yield they can achieve post construction. So site costs are negotiated based on that.

A site is bought subject to planning, again avoiding risk. Occasionally if there’s good visibility on planning, they’ll buy without planning, which means they’ll get a 20% increase on the return.

WJG work with many different institutions including M&G, Legal and General. They know who to go to for different opportunities. Alex Pease, Investment Director, talks through a little of the axioms of land purchase, and bringing the institutions on board.

Phillip Byrom, CFO, runs through the H1 figures in detail. Rev up 40.6% Adj PTP up 85%. GM has gone up to 16.1% from 14.7%, and this should increase to 17.9% in H2.

WJG have a small residential section focussed on N Wales and the NW. This has a land bank for future developments.

The IPO in March 2016 bought out the rest of the family. Today, Mark is the only family member actively involved in the company. Senior management have shares in the company.

With Brexit, it’s too early to know if there’s any impact. To date, all is going ahead as normal. Student accommodation is a good sector in uncertain times. Institutional investors are in for the long term. It’s too early to judge if yields will change. (Yields currently 4-7% dependent on location).

Schemes for FY17 are all sold; they’re currently working on FY18 and 19 to underpin future revenues.

[davidosh] 18/7/2016 11:57

Here is the link to the Mello presentation...



Enjoy

[rivaldo] 18/7/2016 10:12

Cheers davidosh.

WJG making a nice comeback now - up 1.5p to 109.5p this morning on my screen (the header charts are a little behind the times).

[davidosh] 15/7/2016 17:35

Just to let you all know that we filmed the Mello on Wednesday and so the download should be available early next week.

[soundbuy] 14/7/2016 13:34

Cheers Rivaldo........

[dadedidodu] 14/7/2016 13:07

Guys check out CAKE - moving very well - Luke Jonson pizza boy at the top

[rivaldo] 14/7/2016 12:44

Paul Scott has just written very positively about WJG and their presentation on his blog:

Http ://www.stockopedia.com/content/small-cap-value-report-14-jul-2016-emr-wjg-lvd-142661/

Extract:

"I think the presentation went well, and certainly the PER and divi yield at WJB look very attractive. It's a developer of purpose-built student accommodation. The business model seems really well thought-through, with little commercial risk - the projects are forward-sold to yield-hungry institutional investors. There's a long pipeline of projects, and some recurring revenues too, from managing existing sites. The balance sheet looks solid. Further upside could come from purpose-built rental properties.

Aside from student accommodation, so many younger people are now effectively shut out from the property market, in the S.East, due to exorbitant prices, that build to rent type arrangements must surely be the answer to increase the supply of rental properties?

It was interesting to hear that local authorities apparently favour planning applications for purpose-built student accommodation, because so much existing housing stock is freed up once they open - thus helping solve wider housing problems."

[soundbuy] 14/7/2016 07:23

Mello yesterday with WJG??

[jonwig] 14/7/2016 06:55

SPELLBROOK - the LSE does not stamp a trade as 'buy' or 'sell': ADVFN (like others) has a guess. When I bought it was below mid-price.

It could be that lots of buying below mid-price indicates a tap: maybe employee sellers who aren't locked-in? That could be the reason why the share price refuses to make much headway despite broker notes and press comment.

[irenekent] 13/7/2016 16:11

People seem to be piling into these. Including me. And I'll be adding.

[spellbrook] 13/7/2016 11:53

the trades on wjg are hard to follow, appears daily to be more buys than sells

[rivaldo] 12/7/2016 10:15

This reads well...



Extracts:

"Cardiff needs nearly 15,000 more student accommodation rooms
Updated 11:01, 10 Jul 2016
By Sion Barry

Research by property advisory firm Cushman & Wakefield shows that Cardiff needs a further 14,500 dedicated rooms for students"

"Mr Smart said: “These new schemes are nothing short of game changing for the Cardiff student, as the days of your standard student looking to share converted terraced houses start to diminish.

"Students now demand high quality accommodation providing on-site facilities to include communal/socialising areas, laundry facilities and in some instances developments have incorporated gymnasiums and a cinema room.

“These developments are impressive, high end and demand the highest rents achievable within the market.

"In particular the Watkin Jones schemes on Bridge Street and Custom House Street are set to significantly change the City skyline and dominate that area of the city. In fact, when completed the Watkin Jones scheme at Custom House Street will be the tallest building in Wales.

Mr Gibson, said based on Cushman & Wakefield’s analysis - and assuming the construction and in the pipeline schemes are progressed, there still remains a shortfall of approximately 9,000 bed spaces."

[multibagger] 11/7/2016 20:00

Thanks jonwig :)