Watkin Jones Share Discussion Threads

[km18] 13/4/2022 14:58

Watkins Jones plc issued a H1 2022 trading update this morning. H1-2022 revenue was ahead of the prior year, but gross profit and operating profit are expected to be below last year reflecting specific FY22 factors. These include a higher proportion of land sales in the period, which as usual generate a lower margin than the ensuing development activity, and the planned portfolio sale of several PBSA assets which is under offer and expected to close in H2. The business continues to proactively manage inflationary price rises experienced in the period for both asset values and construction costs. The Board has continued confidence in delivery of full year expectations, investor demand is high and there is a secured development pipeline of c. £1.8bn (H1-2021: £1.4bn). Valuation is attractive, the business is profitable and has solid topline growth, the dividend yield is 4%. The share price even has some positive near term momentum. There is a lot to like here. BUY...

...from WealthOracleAM

[shaker44] 13/4/2022 13:24

Maybe they don't want to be overstretched going into a recession. Better to take smaller profits now - a bird in the hand etc.

[ugandalad] 13/4/2022 13:11

Do wonder why they are selling off so much Land if the future is so brights? The availability of land under the business model usually starts the whole adding value process through design sale and into planning approval. They appear to have adequate liquidity.

[its the oxman] 13/4/2022 11:52

Yes, a good positive update.

[paleje] 13/4/2022 08:09

Reassuring competence, very strong investor demand and maintaining margins despite inflationary pressures.

[skinny] 13/4/2022 07:10

.




H1-2022 Trading Update

Robust pipeline underpins confidence in full year delivery

The Group provides the following trading update for the half year ended 31 March 2022 (the 'period' or 'H1-2022').

-- Sustained strong delivery across in-build schemes and pipeline development gives the Board continued confidence in the Group's full year performance.

-- As anticipated, H1-2022 revenue was ahead of the prior year with gross profit and operating profit expected to be below last year, reflecting specific FY22 factors:

- A higher proportion of land sales in the period which as usual generate a lower margin than the ensuing development activity; The Group completed three land sales in the period with revenue of GBP55m compared to nil in H1 FY21.

- The planned portfolio sale of several PBSA assets which is under offer and expected to close in H2.

-- The business continues to proactively manage inflationary price rises experienced in the period for both asset values and construction costs. This has involved a number of 'open book' discussions with purchasers during the sales process. Whilst this has in certain cases lengthened transaction timeframes, to date we have been able to successfully maintain our margins.

-- The business has seen a rising level of investor demand and liquidity for residential for rent assets and the Group has another significant PBSA asset currently under offer for sale, in addition to those in the portfolio referred to above. There are a number of further assets at earlier stages of marketing and which are generating strong interest.

-- Secured development pipeline of c. GBP1.8bn (H1-2021: GBP1.4bn).
-- Good liquidity with gross cash of c. GBP45m (H1-2021: GBP80m) and net cash of c. GBP27m (H1-2021: GBP31m) at the half year end.

-- Further to the position set out at the time of the full year results in January 2022, the Group continues to await the publication of the Government's detailed plans regarding additional initiatives relating to historic fire safety issues. We believe that residential leaseholders should not bear the cost of cladding and critical fire safety defect remediation and will update investors once Government proposals have been published and fully evaluated.

Richard Simpson, Chief Executive Officer of Watkin Jones, said : "We have continued to build on the positive momentum from the second half of last year. We are experiencing very strong investor demand across the markets in which we operate and are well progressed with a number of significant forward sales. This, together with our current momentum, gives confidence in delivery of our full year expectations."

Notice of Interim Results

The Group's Interim Results will be announced on Tuesday 17 May 2022. There will be an in-person presentation for analysts at 09.30am on the day of the announcement, hosted by CEO Richard Simpson and CFO Sarah Sergeant. Please contact Buchanan for further details.

- Ends -

[2vdm] 22/3/2022 08:24

Well a good time to buy some more. Simply Wall St have this undervalued by 40%. All the debt is covered by cash and prospects look good, so I've just topped up for the longer term.

[shooter8] 14/2/2022 11:33

Meant Vlad lol .

[shooter8] 14/2/2022 11:30

I agree Jeffian. We are in for a bumpy ride till Glad pulls his horns in .

[jeffian] 14/2/2022 10:59

When the whole market's off several% and WW3 is pencilled into Vlad's diary for Wednesday (apparently), I don't think the "MM" have much to do with it!

[kadvfn1] 14/2/2022 09:58

amazing to see how MM is driving the share price down on such little volume

[effortless cool] 28/1/2022 17:03

Xd was Thursday, always is, for every share. The shareholders on the register is Friday, always is, for every share.

[clausentum] 28/1/2022 16:51

"The final dividend proposed for the year ended 30 September 2021 is 5.6 pence per ordinary share and will be paid on 25 February 2022 to shareholders on the register at the close of business on 28 January 2022."

[iamnotanumber6] 28/1/2022 16:08

Too late! Went xd yesterday.

[clausentum] 28/1/2022 16:03

Last day before xd.

[dicktrade] 20/1/2022 16:09

Some big volumes in the last few days, looking very strong .

[skinny] 20/1/2022 14:23

New 20+ month high @280.50p.

[skinny] 19/1/2022 14:48

18-Jan-22 Watkin Jones (WJG) Berenberg Bank Buy - 300.00 Reiteration

[skwas1] 19/1/2022 07:27

Tipped again in ic by Simon Thompson. 300p price target.

[dicktrade] 19/1/2022 06:43

Ex div 27/1 paid 25/2 5.6p

[its the oxman] 18/1/2022 23:30

Still looking good for 300p here.