Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Watkin Jones Plc LSE:WJG London Ordinary Share GB00BD6RF223 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -2.00 -0.87% 228.00 228.00 229.50 235.00 228.00 234.00 998,145 16:35:22
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate 354.1 25.3 8.3 27.6 583

Watkin Jones plc Half Year Results

18/05/2021 7:00am

UK Regulatory (RNS & others)


Watkin Jones (LSE:WJG)
Historical Stock Chart


From Apr 2021 to Jul 2021

Click Here for more Watkin Jones Charts.

TIDMWJG

RNS Number : 9154Y

Watkin Jones plc

18 May 2021

 
For immediate release  18 May 2021 
 

Watkin Jones plc

('Watkin Jones' or the 'Group')

Half year results for the six months to 31 March 2021

'Maintaining momentum as confidence returns'

Watkin Jones plc (AIM:WJG), the UK's leading developer and manager of residential for rent, with a focus on the build to rent ('BtR') and purpose built student accommodation ('PBSA') sectors, announces its results for the six months ended 31 March 2021 ('H1-2021' or the 'period').

Financial Highlights

 
                                     H1-2021               H1-2020   Movement 
                                                      (Restated(1) 
                                                                 ) 
 
 
   Revenue                  GBP178.4 million      GBP185.7 million      -3.9% 
 
   Gross profit              GBP41.3 million       GBP42.3 million      -2.3% 
 
   Operating profit          GBP29.1 million       GBP29.6 million      -1.8% 
 
   Profit before tax         GBP25.8 million       GBP26.7 million      -3.3% 
 
         EBITDA              GBP33.4 million       GBP34.2 million      -2.5% 
 
   Basic earnings per 
   share                          8.11 pence            8.46 pence      -4.1% 
 
   Dividend per share              2.6 pence             Nil pence          - 
 
   Cash                      GBP88.7 million       GBP72.4 million          - 
 
   Net cash(2)               GBP31.7 million       GBP37.5 million          - 
 

Commenting on the interim results, Richard Simpson, Chief Executive Officer of Watkin Jones, said: "As we begin to emerge from the pandemic, we are seeing increasing investor confidence in our market sectors. We've maintained the momentum from the second half of last year and made further good progress in securing new forward sales, adding to our development pipeline and keeping all our construction activities on track.

"All parts of the business have continued to perform well, and whilst our profit for the first half of the year was slightly below last year, this was because the first half last year was largely before the onset of the disruption caused by the pandemic.

"The fundamentals supporting the markets for high quality build to rent and student accommodation assets remain strong, driving growing institutional demand, and combined with the continued progress we have made in the first half of the year, gives us confidence in our future trading."

Financial headlines

   --       GBP29.1 million operating profit, slightly below last year's pre-pandemic level 
   --       33% of revenue was from BtR, showing its increasing importance to the Group (H1-2020: 22%) 

-- 23.2% gross margin, up 0.4% points (H1-2020: 22.8%), with a robust performance across all our businesses

-- GBP146.3 million total liquidity available, being cash and available debt facilities (H1-2020: GBP153.4 million)

   --       2.6 pence per share interim dividend (H1-2020: nil pence) 

Notes

1. The comparative results for H1-2020 have been restated for an adjustment to opening IFRS 16 lease assets and liabilities. Further details are provided in note 3 to the interim financial statements.

2. Net cash is stated after deducting site specific bank loans and other interest-bearing loans, but before deducting IFRS 16 lease liabilities.

Business Highlights

Operational resilience demonstrated across all parts of the Group

   --       Work is on track on all 15 BtR and PBSA developments currently being built 
   --       3,424 new student bed property management mandates for Fresh since the start of the year 
   --       Residential sales momentum maintained 

Continued progress in forward sales market

   --       909 beds across three PBSA developments contracted in the period 
   --       462-bed PBSA development in Leicester contracted after the half year 

-- 722 BtR apartments in advanced legals for sale, these being Hove (216 apartments), Leicester (184 apartments) and Lewisham (322 apartments)

   --       295-bed PBSA development in Edinburgh for delivery in FY23, sale terms agreed 

Development pipeline further enhanced

-- GBP1.6 billion future revenue value now in our secured development pipeline (up from GBP1.0 billion last year):

 
                          Current             H1-2020          January 2021 
                                                                  Update 
 BtR (apartments)          5,008               2,660              4,466 
                    ------------------  ------------------  ----------------- 
 PBSA (beds)               8,509               7,200              7,910 
                    ------------------  ------------------  ----------------- 
 Future revenue      c.GBP1.6 billion*   c.GBP1.0 billion*   c.GBP1.5 billion 
  value 
                    ------------------  ------------------  ----------------- 
 

* Excluding the revenue delivered in the period.

-- 542 BtR apartments and 599 PBSA beds added to our pipeline since our last update in January 2021:

 
                             BtR         PBSA 
                         (apartments)    (beds) 
 January 2021 update            4,466     7,910 
                       --------------  -------- 
 New sites secured: 
  Edinburgh                       524       286 
  Swansea                           -       350 
                       --------------  -------- 
                                  524       636 
 Design changes                    18      (37) 
                       --------------  -------- 
 Current                        5,008     8,509 
                       --------------  -------- 
 

-- Planning secured for our first co-living scheme, for 133 beds in Exeter, in which tenants have a private studio with shared communal facilities

Market dynamics supportive

-- Significant increase in institutional demand for PBSA; confidence returning in occupancy levels for 2021-2022 academic year

   --       Growing institutional demand for BtR 

Affordable homes opportunity

   --       Pilot on track 

Analyst meeting

A conference call for analysts and investors will be held at 09.30am today, 18 May 2021. A copy of the Half Year Results presentation will be available on the Group's website: http://www.watkinjonesplc.com

An audio webcast of the conference call with analysts will be available after 12pm today:

https://webcasting.buchanan.uk.com/broadcast/607d6a2c0386285386cc951a

For further information:

 
Watkin Jones plc 
Richard Simpson, Chief Executive           Tel: +44 (0) 20 3617 4453 
 Officer 
Philip Byrom, Chief Financial                 www.watkinjonesplc.com 
 Officer 
 
Peel Hunt LLP (Nominated Adviser           Tel: +44 (0) 20 7418 8900 
 & Joint Corporate Broker) 
Mike Bell / Ed Allsopp                              www.peelhunt.com 
 
 
Jefferies Hoare Govett (Joint Corporate    Tel: +44 (0) 20 7029 8000 
 Broker) 
Max Jones / Will Soutar                            www.jefferies.com 
 
 

Media enquiries:

 
Buchanan 
Henry Harrison-Topham / Richard Oldworth 
 Jamie Hooper / Steph Watson                Tel: +44 (0) 20 7466 5000 
watkinjones@buchanan.uk.com                       www.buchanan.uk.com 
 

Notes to Editors

Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the build to rent and student accommodation sectors. The Group has strong relationships with institutional investors, and a reputation for successful, on-time-delivery of high quality developments. Since 1999, Watkin Jones has delivered 43,000 student beds across 130 sites, making it a key player and leader in the UK purpose-built student accommodation market. In addition, Fresh, the Group's specialist accommodation management business, manages over 20,000 student beds and build to rent apartments on behalf of its institutional clients. Watkin Jones has also been responsible for over 80 residential developments, ranging from starter homes to executive housing and apartments. The Group is increasingly expanding its operations into the build to rent sector and is piloting an opportunity to re-focus its residential house building operation as a developer of affordable homes.

The Group's competitive advantage lies in its experienced management team and business model, which enables it to offer an end-to-end solution for investors, delivered entirely in-house with minimal reliance on third parties, across the entire life cycle of an asset.

Watkin Jones was admitted to trading on AIM in March 2016 with the ticker WJG.L. For additional information please visit www.watkinjonesplc.com

Review of Performance

Results for the six months to 31 March 2021

Revenues for the period were GBP178.4 million, compared to the pre-pandemic GBP185.7 million for H1-2020. Our developments in build are all progressing in line with expectations.

Gross profit was GBP41.3 million (H1-2020: GBP42.3 million), with an improvement in the gross margin to 23.2% from 22.8% last year. Margin performance was as expected, with the developments in build contributing strongly.

Operating profit for the period was GBP29.1 million (H1-2020: GBP29.6 million).

Net finance costs for the period amounted to GBP3.2 million (H1-2020: GBP2.9 million), reflecting the additional cost associated with the GBP40.0 million increase in our RCF limit in May last year. Finance costs include GBP2.4 million (H1-2020: GBP2.6 million) in respect of the finance cost of capitalised operating leases under IFRS16.

Profit before tax for the period was GBP25.8 million (H1-2020: GBP26.7 million). Basic earnings per share for the period were 8.11 pence, compared to 8.46 pence for H1-2020.

Segmental review

Build to Rent ('BtR')

The contribution from BtR increased further in the period, with revenues of GBP59.1 million, up GBP17.9 million (43.3%) on H1-2020. Revenues derived from the build of our forward sold developments in Reading, Sutton, Stratford and Wembley, which are progressing on track for completion in H2-2021.

BtR gross profit for the period was GBP12.4 million (H1-2020: GBP6.6 million), an increase of 87.8%. The margin for the period was 21.0% (H1-2020: 16.1%), reflecting a robust performance across all of the developments in build for FY21 as they near completion.

We are in advanced legals for the forward sale of our developments in Hove (216 apartments), Leicester (184 apartments) and Lewisham (322 apartments plus 43 affordable).

In the period we secured a site in Belfast (780 apartments) and subsequent to the period end a site in Edinburgh (524 apartments), both subject to planning. We are actively progressing with several other site acquisitions.

The current BtR development pipeline is as shown in the table below:

 
                                                         BtR apartments 
                                     ----------------------------------------------------- 
                                      Total pipeline    FY21   FY22   FY23    FY24    FY25 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 Forward sold                                    928     857     71      -       -       - 
 Forward sales in legals                         765     184      -    581       -       - 
 Sites secured with planning                       -       -      -      -       -       - 
 Sites secured subject to planning             3,315       -      -      -   1,324   1,991 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 Total secured                                 5,008   1,041     71    581   1,324   1,991 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 Change*                                        +542    +184   -184    +43    +207    +292 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 
 Site acquisitions in legals                       -       -      -      -       -       - 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 Total BtR pipeline                            5,008   1,041     71    581   1,324   1,991 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 Change*                                        +295    +184   -184    +43     -40    +292 
-----------------------------------  ---------------  ------  -----  -----  ------  ------ 
 

*The change in the pipeline is compared to the previous update in January 2021.

The appraised future revenue value to the Group of the secured development pipeline, excluding the revenue delivered in H1-2021, is c.GBP950.0 million (H1-2020: GBP550.0 million).

Student accommodation ('PBSA')

Revenues from PBSA were 13.3% lower than last year at GBP104.8 million (H1-2020: GBP120.8 million), with the prior year revenues benefitting by GBP23.5 million from the recognition of the full sales value of a development completed in Chester, which had been sold on a turnkey basis. Forward sold development revenues were therefore a little ahead of last year, reflecting the continued good progress on site of all developments in build.

PBSA revenues include the letting income on our six historic leased PBSA assets and this has been reduced by approximately GBP4.3 million compared to H1-2020 as a result of the lower level of student occupancy this year. We have seen a number of students returning to their accommodation as lockdown restrictions have eased and we expect the full year reduction in revenues to be within the previously guided maximum of GBP10.0 million.

The gross margin for PBSA was 24.1%, a small decrease on the 24.5% gross margin for H1-2020.

In the period we forward sold three PBSA developments in Bristol (291 beds), Leicester (250 beds) and York (368 beds) for delivery in FY22. For each of these developments, the clients concerned acquired the land site directly. Subsequent to the period end we exchanged contracts for the sale on a turnkey basis of our 462-bed scheme in Leicester, for delivery this financial year. The combined revenue value to the Group of these four contracted sales is GBP101.1 million.

We have also agreed terms for the forward sale of a 295-bed development in Edinburgh, subject to the receipt of a planning amendment, which is targeted for delivery in FY23.

We secured two sites subject to planning since the start of the year, these being in Edinburgh (286 beds) and Swansea (350 beds).

The current PBSA development pipeline is as shown in the table below:

 
                                                            PBSA beds 
                                     ------------------------------------------------------- 
                                      Total pipeline    FY21    FY22    FY23    FY24    FY25 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 Forward sold                                  4,360   3,192   1,168       -       -       - 
 Forward sales in legals                         547       -       -     547       -       - 
 Sites secured with planning                     778       -     778       -       -       - 
 Sites secured subject to planning             2,824       -       -   1,816     673     335 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 Total secured                                 8,509   3,192   1,946   2,363     673     335 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 Change*                                        +599       -      +1     -75    +338    +335 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 
 Site acquisitions in legals                   1,517       -       -     357     394     766 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 Total PBSA pipeline                          10,026   3,192   1,946   2,720   1,067   1,101 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 Change*                                        +118       -      +1    -380    +162    +335 
-----------------------------------  ---------------  ------  ------  ------  ------  ------ 
 

*The change in the pipeline is compared to the previous update in January 2021.

The appraised future revenue value to the Group of the secured development pipeline, excluding the revenue delivered in H1-2021, is c.GBP625.0 million (H1-2020: c.GBP500.0 million).

Accommodation management (Fresh)

Fresh achieved revenues of GBP3.8 million (H1-2020: GBP4.1 million), reflecting the largely fixed nature of its management fee income. The reduction of 8% reflects the loss of some income that varies with student occupancy levels, partly offset by the higher number of student beds and BtR apartments under management at the start of the year (20,179), compared to the start of FY20 (17,721).

Operationally, Fresh has continued to support both its student customers and clients through the pandemic. Since the start of the year it has won new mandates for 3,424 student beds.

The reduction in Fresh's revenue for the period led to a modest decrease in gross profit to GBP2.2 million (H1-2020: GBP2.6 million), at a margin of 58.4% (H1-2020: 61.9%).

By FY 2023, Fresh is currently appointed to manage 22,981 student beds and BtR apartments across 71 schemes, including expected renewals, an increase of 1,191 beds since our update in January 2021.

Residential

The residential development business achieved 33 sales completions in the period, in line with its targets (H1-2020: 73 sales). H1-2020 sales included the completion of the 35-apartment scheme at Trafford Street, Chester, which had been sold on a turnkey basis. Excluding this sale, house completions for H1-2021 were at a similar level to last year. The momentum we reported in new sales being reserved during the summer months of 2020 has continued, with a further 55 reservations since the start of the year, adding to the 25 reservations with which we started the year.

Revenues for the division were GBP8.9 million lower than last year at GBP10.7 million. H1-2020 revenues included the revenue from the completion of the apartment scheme in Chester, as well as the remaining higher value sales of apartments at our Duncan House, Stratford development.

The gross profit achieved by the division was GBP1.5 million (H1-2020: GBP3.7 million), at a margin of 14.0% (H1-2020: 19.0%). The reduction in margin reflects the mix of sales, with last year's margin benefiting in particular from the apartment sales at Duncan House.

Affordable homes pilot

We made good progress with the launch of the North West affordable homes pilot in the period.

Pipeline

We completed the acquisition of the site in Crewe for 245 units and exchanged contracts on a site for 51 units in Llay, Wrexham. We are also in advanced legal negotiations to secure a further site in the North West for 189 units, which will bring the current affordable homes pipeline to 485 units for delivery over the period FY22 - FY25. All of these sites have planning. Given the encouraging initial progress, a number of further site opportunities are also under review.

Forward sales

Subsequent to the period end we exchanged forward sale contracts with Adra for 23 units at the site in Llay and we expect to exchange contracts imminently for the forward sale of 159 units at the site in Crewe. We are also progressing heads of terms for the forward sale of 133 units at the further new site that we are in the process of acquiring. All forward sale values are in line with our financial appraisals.

Balance sheet and liquidity

Our financial position and liquidity remains strong. We had a cash balance at 31 March 2021 of GBP88.7 million (31 March 2020: GBP72.4 million), whilst net cash stood at GBP31.7 million (31 March 2020: GBP37.5 million), before deducting IFRS 16 lease liabilities.

The Group had undrawn headroom of GBP47.6 million on its revolving credit facility ('RCF') with HSBC at 31 March 2021 and an unutilised overdraft facility of GBP10.0 million, giving total cash and available facilities of GBP146.3 million (31 March 2020: GBP153.4 million).

We have continued to secure opportunities in the land market during the pandemic. We have also been able to progress the development of our BtR and PBSA schemes in Leicester for completion in FY21. This investment, combined with our normal annual cash profile, which sees a utilisation of cash in the first half of the year, resulted in a reduction in our net cash balance of GBP63.1 million since the start of the year. Our inventory and work in progress balance has similarly increased by GBP63.3 million in the period to GBP189.0 million. Of this balance, GBP42.3 million relates to the work in progress cost of the two developments in Leicester.

Contract assets and receivables at 31 March 2021 stood at GBP38.7 million and GBP23.5 million respectively and were broadly unchanged from the position at 30 September 2020. The contract assets relate primarily to the final payments to be received on completion of the forward sold developments in build. Contract and trade liabilities amounted to GBP98.1 million at 31 March 2021 and were also at a similar level to the FY20 year-end position.

Environmental, Social and Governance ('ESG')

We continue to evolve our ESG framework. Our work in the period has centred on identifying the key initiatives for the business, determining the targets against which we will measure and report our performance and how the initiatives will be integrated as part of our day to day operations. As part of this work we are engaging with our key stakeholders to identify what is important to them and to help inform our approach.

The health and safety of our employees, supply chain partners and tenants of the properties we manage is our number one priority. We continue to deploy strict Covid-19 working practices on our sites and through Fresh to ensure that the wellbeing of students and our BtR consumers is catered for. Whilst we have continued to operate highly effectively, this is against the backdrop of the pandemic and our employees have continued to work tirelessly in exceptionally difficult circumstances. Their efforts and commitment have been exemplary and I would again like to thank them all personally.

Cladding update

In our FY20 results we made a provision of GBP15.0 million to cover the cost of cladding remedial works on previous high-rise residential buildings we had developed, working with the property owners concerned to ensure the safety of tenants, even though we are not legally liable. These works are progressing in line with our previous guidance.

GBP5.1 million of the cost of the works was incurred in FY20, with a further GBP0.9 million incurred in H1-2021. The remaining provision of GBP9.0 million is expected to be incurred over the remainder of FY21 and FY22.

The Government has recently announced that it intends to levy a tax on the profits of residential developers, combined with a planning gain levy on future developments, in order to recoup the cost of its high-rise cladding replacement support scheme. The precise scope and detail of the residential developer tax have not yet been concluded and will be the subject of a consultation process over the coming months. We are currently preparing our response and will actively participate in the consultation process.

Dividend

The Board has declared an interim dividend for the period of 2.6 pence per share, which will be paid on 30 June 2021 to shareholders on the register at close of business on 9 June 2021. The shares will go ex-dividend on 8 June 2021.

Outlook

The underlying market fundamentals supporting residential for rent remain strong, as evidenced by increasing investor appetite for both BtR and PBSA as we emerge from the pandemic. This, combined with the growth in our development pipeline, operational capabilities and financial strength, underpins our confidence in the future prospects for the Group.

Richard Simpson

Chief Executive Officer

18 May 2021

Consolidated Statement of Comprehensive Income

for the six month period ended 31 March 2021 (unaudited)

 
                                                                             6 months to   6 months to    12 months to 
                                                                                31 March      31 March    30 September 
                                                                                    2021          2020            2020 
                                                                                             (Restated 
                                                                                             - note 3) 
                                                                     Notes       GBP'000       GBP'000         GBP'000 
   Continuing operations 
 Revenue                                                                         178,420       185,672         354,121 
 Cost of sales                                                                 (137,089)     (143,373)       (278,205) 
                                                                            ------------  ------------  -------------- 
 Gross profit                                                                     41,331        42,299          75,916 
 Administrative expenses                                                        (12,255)      (12,682)        (24,249) 
 
 Operating profit before exceptional costs                                        29,076        29,617          51,667 
 Exceptional costs                                                       6             -             -        (20,437) 
                                                                            ------------  ------------  -------------- 
 Operating profit                                                                 29,076        29,617          31,230 
 Share of profit in joint ventures                                                     -             -             199 
 Finance income                                                                        1           200             251 
 Finance costs                                                                   (3,239)       (3,084)         (6,366) 
                                                                            ------------  ------------  -------------- 
 Profit before tax from continuing operations                                     25,838        26,733          25,314 
 Income tax expense                                                      7       (5,056)       (5,104)         (4,222) 
                                                                            ------------  ------------  -------------- 
 Profit for the period attributable to ordinary equity holders of 
  the parent                                                                      20,782        21,629          21,092 
                                                                            ============  ============  ============== 
 
 Other comprehensive income 
 
 Net gain on equity instruments designated at fair value through 
  other comprehensive income                                                           -             -             (6) 
                                                                            ------------  ------------  -------------- 
 
 Total comprehensive income for the period attributable to 
  ordinary equity holders of the parent                                           20,782        21,629          21,086 
                                                                            ============  ============  ============== 
 
 Earnings per share for the period attributable to ordinary equity                 Pence         Pence           Pence 
 holders of the parent 
 
   Basic earnings per share                                              8         8.113         8.458           8.246 
                                                                            ============  ============  ============== 
 Diluted earnings per share                                              8         8.108         8.425           8.234 
                                                                            ============  ============  ============== 
 
 Adjusted basic earnings per share (excluding exceptional costs)         8         8.113         8.458          14.717 
                                                                            ============  ============  ============== 
 
 Adjusted diluted earnings per share (excluding exceptional costs)       8         8.108         8.425          14.696 
                                                                            ============  ============  ============== 
 

Consolidated Statement of Financial Position

as at 31 March 2021 (unaudited)

 
                                                             31 March      31 March   30 September 
                                                                 2021          2020           2020 
                                                                          (Restated 
                                                                          - note 3) 
                                                    Notes     GBP'000       GBP'000        GBP'000 
 Non-current assets 
 Intangible assets                                             13,004        13,564         13,284 
 Investment property (leased)                          10     101,475       110,125        104,623 
 Right of use assets                                   10       4,923         5,402          4,763 
 Property, plant and equipment                                  4,068         4,965          4,376 
 Investment in joint ventures                                   3,243         2,794          3,243 
 Deferred tax asset                                             3,313         3,758          3,313 
 Other financial assets                                         1,133         1,139          1,133 
                                                           ----------  ------------  ------------- 
                                                              131,159       141,747        134,735 
                                                           ----------  ------------  ------------- 
 Current assets 
 Inventory and work in progress                               189,005       108,640        125,660 
 Contract assets                                               38,682        79,211         41,522 
 Trade and other receivables                                   23,457        20,419         23,518 
 Cash and cash equivalents                           12        88,727        72,394        134,513 
                                                           ----------  ------------  ------------- 
                                                              339,871       280,664        325,213 
                                                           ----------  ------------  ------------- 
 Total assets                                                 471,030       422,411        459,948 
                                                           ==========  ============  ============= 
 Current liabilities 
 Trade and other payables                                    (91,602)      (69,153)       (97,300) 
 Contract liabilities                                         (6,537)       (4,462)        (8,967) 
 Lease liabilities                                            (6,139)       (6,209)        (6,310) 
 Provisions                                                   (5,384)             -        (6,277) 
 Interest-bearing loans and borrowings                          (870)       (1,021)          (711) 
 Current tax liabilities                                      (4,087)       (6,869)          (819) 
                                                           ----------  ------------  ------------- 
                                                            (114,619)      (87,714)      (120,384) 
                                                           ----------  ------------  ------------- 
 Non-current liabilities 
 Interest-bearing loans and borrowings                       (56,132)      (33,861)       (38,956) 
 Lease liabilities                                          (125,544)     (131,437)      (128,143) 
 Deferred tax liabilities                                     (1,187)       (1,042)        (1,040) 
 Provisions                                                   (3,587)             -        (3,587) 
                                                           ----------  ------------  ------------- 
                                                            (186,450)     (166,340)      (171,726) 
                                                           ----------  ------------  ------------- 
 Total Liabilities                                          (301,069)     (254,054)      (292,110) 
                                                           ==========  ============  ============= 
 Net assets                                                   169,961       168,357        167,838 
                                                           ==========  ============  ============= 
 Equity 
 Share capital                                                  2,562         2,553          2,562 
 Share premium                                                 84,612        84,612         84,612 
 Merger reserve                                              (75,383)      (75,383)       (75,383) 
 Fair value reserve of financial assets at FVOCI                  428           434            428 
 Share-based payment reserve                                    2,515         2,263          2,348 
 Retained earnings                                            155,227       153,878        153,271 
                                                           ----------  ------------  ------------- 
 Total Equity                                                 169,961       168,357        167,838 
                                                           ==========  ============  ============= 
 

Consolidated Statement of Changes in Equity

for the six month period ended 31 March 2021 (unaudited)

 
                                                                Fair value 
                                                              of financial  Share-based 
                                Share     Share      Merger         assets      payment    Retained 
                              Capital   Premium     Reserve       at FVOCI      reserve    earnings     Total 
                              GBP'000   GBP'000     GBP'000        GBP'000       GBP000     GBP'000   GBP'000 
 
Balance at 30 September 
 2019                           2,553    84,612    (75,383)            434        2,311     146,568   161,095 
Profit for the period               -         -           -              -            -      21,629    21,629 
Share-based payments                -         -           -              -         (48)           -      (48) 
Dividend paid (note 
 9)                                 -         -           -              -            -    (14,319)  (14,319) 
Balance at 
 31 March 2020 (restated)       2,553  84,612    (75,383)    434            2,263        153,878     168,357 
                            =========  ========  ==========  =============  ===========  ==========  ======== 
 
(Loss) for the period               -         -           -              -            -       (537)     (537) 
Share-based payments                -         -           -              -           85           -        85 
Other comprehensive 
 income                             -         -           -            (6)            -           -       (6) 
Deferred tax debited 
 directly to equity                 -         -           -              -            -        (70)      (70) 
Issue of shares                     9         -           -              -            -           -         9 
Balance at 30 September 
 2020                           2,562    84,612    (75,383)            428        2,348     153,271   167,838 
                            =========  ========  ==========  =============  ===========  ==========  ======== 
 
  Profit for the period             -         -      -                   -            -      20,782    20,782 
Share-based payments                -         -      -                   -          167           -       167 
Dividend paid (note 
 9)                         -          -         -           -              -            (18,826)    (18,826) 
                            ---------  --------  ----------  -------------  -----------  ----------  -------- 
Balance at 
 31 March 2021              2,562      84,612    (75,383)    428            2,515        155,227     169,961 
                            =========  ========  ==========  =============  ===========  ==========  ======== 
 

Consolidated Statement of Cash Flows

for the six month period ended 31 March 2021 (unaudited)

 
                                                 6 months    6 months      12 months 
                                                       to          to             to 
                                                 31 March    31 March   30 September 
                                                     2021        2020           2020 
                                                            (Restated 
                                                            - note 3) 
                                         Notes    GBP'000     GBP'000        GBP'000 
Cash flows from operating activities 
Cash (outflow)/inflow from 
 operations                               11     (35,467)    (12,975)         54,868 
Interest received                                       1         200            245 
Interest paid                                     (3,658)     (3,300)        (6,792) 
Tax paid                                          (1,641)     (5,211)       (10,035) 
                                                ---------  ----------  ------------- 
Net cash (outflow)/inflow from 
 operating activities                            (40,765)    (21,286)         38,286 
                                                =========  ==========  ============= 
 
  Cash flows from investing activities 
Acquisition of property, plant 
 and equipment                                      (763)       (672)          (317) 
Proceeds on disposal of property, 
 plant and equipment                                    -          19             69 
Cash flow from joint venture 
 interest                                               -           -            812 
Net cash outflow from investing 
 activities                                         (763)       (653)            564 
                                                =========  ==========  ============= 
 
  Cash flows from financing activities 
Dividend paid                              9     (18,826)    (14,319)       (14,319) 
Proceeds from exercise of share 
 options                                                -           -              9 
Payment of principal portion 
 of lease liabilities                             (2,768)     (2,998)        (6,089) 
New other interest- bearing 
 loan                                                 261           -              - 
Payment of capital element 
 of other interest-bearing loans                    (164)       (526)        (1,034) 
Drawdown of RCF                                    19,808       1,302         20,843 
Repayment of bank loans                           (2,569)     (4,778)       (18,499) 
Bank loan arrangement fees                              -           -          (900) 
Net cash outflow from financing 
 activities                                       (4,258)    (21,319)       (19,989) 
                                                =========  ==========  ============= 
 
Net (decrease)/increase in 
 cash                                            (45,786)    (43,258)         18,861 
Cash and cash equivalents at 
 beginning of the period                          134,513     115,652        115,652 
                                                ---------  ----------  ------------- 
Cash and cash equivalents at 
 end of the period                         12      88,727      72,394        134,513 
                                                =========  ==========  ============= 
 

Notes to the consolidated financial information

   1.            General information 

Watkin Jones plc (the 'Company') is a limited company incorporated in the United Kingdom under the Companies Act 2006 (Registration number 09791105). The Company is domiciled in the United Kingdom and its registered address is 7-9 Swallow Street, London, W1B 4DE.

The principal activities of the Company and its subsidiaries (collectively the 'Group') are the development and management of multi-occupancy residential rental properties.

The consolidated interim financial statements of the Group for the six month period ended 31 March 2021 comprises the Company and its subsidiaries. The basis of preparation of the consolidated interim financial statements is set out in note 2 below.

The financial information for the six months ended 31 March 2021 is unaudited. It does not constitute statutory financial statements within the meaning of Section 434 of the Companies Act 2006. The consolidated interim financial statements should be read in conjunction with the financial information for the year ended 30 September 20 which has been prepared in accordance with international accounting standard in conformity with the requirements of the Companies Act 2006. The report of the auditors on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) of the Companies Act 2006.

This report was approved by the directors on 17 May 2021.

   2.            Basis of preparation 

The interim financial statements have been prepared based on IFRS that are expected to exist at the date on which the Group prepares its financial statements for the year ended 30 September 2021. To the extent that IFRS at 30 September 2021 does not reflect the assumptions made in preparing the interim financial statements, those financial statements may be subject to change.

The interim financial statements have been prepared on a going concern basis and under the historical cost convention.

The interim financial statements have been presented in pounds sterling and all values are rounded to the nearest thousand (GBP'000), except when otherwise indicated.

The preparation of financial information in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual events may ultimately differ from those estimates.

The interim financial statements do not include all financial risk information and disclosures required in the annual financial statements and they should be read in conjunction with the financial information that is presented in the Company's audited financial statements for the year ended 30 September 2020. There has been no significant change in any risk management policies since the date of the last audited financial statements.

   3.            Accounting policies 

The accounting policies used in preparing these interim financial statements are the same as those set out and used in preparing the Company's audited financial statements for the year ended 30 September 2020.

Restatement of results for six months to 31 March 2020

After the release of the half year results to 31 March 2020, several changes were made in relation to the initial application of the new accounting standard, IFRS 16, and incorporated into the audited full year results for the year ending 30 September 2020. The comparative figures to 31 March 2020 have now been restated to reflect these amendments, which relate to the Group's six historic student accommodation sale and leaseback properties. These assets had been reported in the H1-2020 consolidated statement of financial position as 'right of use' assets, but have been reclassified as 'investment property (leased) assets' at 30 September 2020. This better reflects the asset classification requirements of IAS 40 'Investment Property' when applied in conjunction with IFRS 16. In addition, a change was made to the Incremental Borrowing Rates ("IBRs") used to calculate the initial values for the investment property (leased) assets and associated lease liabilities, which had the effect of reducing their opening values. The IBRs were increased to better reflect the likely borrowing rate which would be paid over a similar term to the underlying long leases. Presentational changes have also been made to the consolidated statement of financial position at 31 March 2020 in relation to provisions for onerous leases, which are now reported within investment property (leased) assets as impairment provisions; and to prepayment and accrual balances relating to the leases which are now included in the lease asset and liability values.

The restatements for these changes are immaterial on total comprehensive income, reduce net equity by GBP0.5 million and have no impact on cash. The detailed changes to each affected financial statement line items are as follows:

Impact on consolidated statement of comprehensive income due to increase in IBR:

 
                                                                       6 months to 
                                                                          31 March 
                                                                              2020 
                                                               Increase/(decrease) 
                                                                           GBP'000 
 Cost of sales                                                               (420) 
 Finance costs                                                                 324 
 Income tax expense                                                             43 
 
   Net impact on total comprehensive income for the period                      53 
                                                             --------------------- 
 

Impact on basic and diluted earnings per share (EPS) due to the correction relating to the IBR:

 
                               6 months to 
                                  31 March 
                                      2020 
                                  Increase 
                                     Pence 
 Basic earnings per share            0.021 
 Diluted earnings per share          0.021 
 

Impact on consolidated statement of financial position as at 31 March 2020:

 
                                      Reclassification of   Increase in IBR          Reclassification of         Total 
                               student sale and leaseback                       onerous lease provision, 
                                               properties                      prepayments and accruals. 
                                                                                                             Increase/ 
                                                                                                            (decrease) 
                                                  GBP'000           GBP'000                      GBP'000       GBP'000 
 Investment property 
  (leased)                                        121,775           (8,256)                      (3,457)       110,062 
 Right of use assets                            (121,775)                 -                            -     (121,775) 
 Deferred tax asset                                     -                28                           91           119 
 Trade and other receivables                            -                 -                        (593)         (593) 
                              ---------------------------  ----------------  ---------------------------  ------------ 
 Total assets                                           -           (8,228)                      (3,959)      (12,187) 
 
 Trade and other payables                               -                 -                        (141)         (141) 
 Lease liabilities                                      -           (8,110)                            -       (8,110) 
 Current tax liabilities                                -                30                            -            30 
 Provisions                                             -                 -                      (3,457)       (3,457) 
                              ---------------------------  ----------------  ---------------------------  ------------ 
 Total liabilities                                      -           (8,080)                      (3,598)      (11,678) 
 
   Net impact on equity                                 -             (148)                        (361)         (509) 
                              ---------------------------  ----------------  ---------------------------  ------------ 
 

Impact on consolidated statement of cash flows due to the correction relating to the increase in IBR:

 
                                                               6 months to 
                                                                  31 March 
                                                                      2020 
                                                       Increase/(decrease) 
                                                                   GBP'000 
 Cash outflow from operations                                         (83) 
 Interest paid                                                         324 
 Payment of principal portion of lease liabilities                   (241) 
 
   Net impact on cash flows for the period                               - 
                                                     --------------------- 
 
   4.            Segmental reporting 

The Group has identified four segments for which it reports under IFRS 8 'Operating segments', as follows:

   A          Student accommodation - the development of purpose-built student accommodation; 
   B          Build to rent - the development of build to rent accommodation; 
   C          Residential - the development of residential property for sale; and 

D Accommodation management - the management of student accommodation and build to rent property.

Corporate - revenue from the development of commercial property forming part of mixed use schemes and other revenue and costs not solely attributable to any one operating segment.

Performance is measured by the Board based on gross profit as reported in the management accounts. Apart from inventory and work in progress, no other assets or liabilities are analysed into the operating segments.

 
                                               Build 
 6 months to 31                    Student        to                 Accommodation 
  March 2021 (unaudited)     accommodation      rent   Residential      management   Corporate      Total 
                                   GBP'000   GBP'000       GBP'000         GBP'000     GBP'000    GBP'000 
 
 Segmental revenue                 104,759    59,112        10,670           3,816          63    178,420 
                           ---------------  --------  ------------  --------------  ----------  --------- 
 Segmental gross 
  profit                            25,215    12,397         1,490           2,228           1     41,331 
 Administration 
  expenses                               -         -             -         (1,708)    (10,547)   (12,255) 
 Finance income                          -         -             -               -           1          1 
 Finance costs                           -         -             -               -     (3,239)    (3,239) 
 Profit/(loss) 
  before tax                        25,215    12,397         1,490             520    (13,784)     25,838 
 Taxation                                -         -             -               -     (5,056)    (5,056) 
                           ---------------  --------  ------------  --------------  ----------  --------- 
 Profit/(loss) 
  for the period                    25,215    12,397         1,490             520    (18,840)     20,782 
                           ===============  ========  ============  ==============  ==========  ========= 
 
 Inventory and 
  WIP                               56,700    90,656        31,316               -      10,333    189,005 
                           ---------------  --------  ------------  --------------  ----------  --------- 
 
 
 
 6 months to 31 
  March 2020 (unaudited)                       Build 
  (Restated - note                 Student        to                 Accommodation 
  3)                         accommodation      rent   Residential      management   Corporate      Total 
                                   GBP'000   GBP'000       GBP'000         GBP'000     GBP'000    GBP'000 
 
 Segmental revenue                 120,766    41,241        19,613           4,147        (95)    185,672 
                           ---------------  --------  ------------  --------------  ----------  --------- 
 Segmental gross 
  profit                            29,570     6,648         3,743           2,565       (227)     42,299 
 Administration 
  expenses                               -         -             -         (1,804)    (10,878)   (12,682) 
 Finance income                          -         -             -               -         200        200 
 Finance costs                           -         -             -               -     (3,084)    (3,084) 
 Profit/(loss) 
  before tax                        29,570     6,648         3,743             761    (13,989)     26,733 
 Taxation                                -         -             -               -     (5,104)    (5,104) 
                           ---------------  --------  ------------  --------------  ----------  --------- 
 Profit/(loss) 
  for the period                    29,570     6,648         3,743             761    (19,093)     21,629 
                           ===============  ========  ============  ==============  ==========  ========= 
 
 Inventory and 
  WIP                               22,067    42,807        33,599               -      10,167    108,640 
                           ---------------  --------  ------------  --------------  ----------  --------- 
 
 

The comparative information for the 6 months to 31 March 2020 has been re-presented in a way which is consistent with the internal reporting provided to the chief operating decision-maker. Revenue of GBP4,698,000 and gross profit of GBP689,000 has been transferred from the residential to the build to rent segment.

 
 Year ended                               Build 
  30 September                Student        to                 Accommodation 
  2020                  accommodation      rent   Residential      management   Corporate      Total 
                              GBP'000   GBP'000       GBP'000         GBP'000     GBP'000    GBP'000 
 
 Segmental revenue            226,026    93,991        26,268           7,586         250    354,121 
                      ---------------  --------  ------------  --------------  ----------  --------- 
 Segmental gross 
  profit                       54,285    14,884         4,042           4,540     (1,835)     75,916 
 Administration 
  expenses                          -         -             -         (3,432)    (20,817)   (24,249) 
 Exceptional costs                  -         -             -               -    (20,437)   (20,437) 
 Share of operating 
  profit in joint 
  ventures                        199         -             -               -           -        199 
 Finance income                     -         -             -               -         251        251 
 Finance costs                      -         -             -               -     (6,366)    (6,366) 
 Profit/(loss) 
  before tax                   54,484    14,884         4,042           1,108    (49,204)     25,314 
 Taxation                           -         -             -               -     (4,222)    (4,222) 
                      ---------------  --------  ------------  --------------  ----------  --------- 
 Profit/(loss) 
  for the period               54,484    14,884         4,042           1,108    (53,426)     21,092 
                      ===============  ========  ============  ==============  ==========  ========= 
 
 Inventory and 
  WIP                          30,706    53,964        30,656               -      10,334    125,660 
                      ---------------  --------  ------------  --------------  ----------  --------- 
 
 
   5.            Disaggregated revenue information 
 
                                                     Student  Build to               Accommodation 
6 months to 31 March 2021 (unaudited)          accommodation      rent  Residential     management  Corporate    Total 
                                                     GBP'000   GBP'000      GBP'000        GBP'000    GBP'000  GBP'000 
 
Type of goods or service 
Construction contracts or development 
 agreements                                           99,283    58,405            -              -         63  157,751 
Sale of land                                               -         -            -              -          -        - 
Sale of completed property                                 -         -       10,670              -          -   10,670 
Rental income                                          5,476       707            -              -          -    6,183 
Accommodation management                                   -         -            -          3,816          -    3,816 
--------------------------------------------  --------------  --------  -----------  -------------  ---------  ------- 
Total revenue from contracts with customers          104,759    59,112       10,670          3,816         63  178,420 
============================================  ==============  ========  ===========  =============  =========  ======= 
Timing of revenue recognition 
Goods transferred at a point in time                       -         -       10,670              -          -   10,670 
Services transferred over time                       104,759    59,112            -          3,816         63  167,750 
--------------------------------------------  --------------  --------  -----------  -------------  ---------  ------- 
Total revenue from contracts with customers          104,759    59,112       10,670          3,816         63  178,420 
============================================  ==============  ========  ===========  =============  =========  ======= 
 
 
                                                     Student  Build to               Accommodation 
6 months to 31 March 2020 (unaudited)          accommodation      rent  Residential     management  Corporate    Total 
                                                     GBP'000   GBP'000      GBP'000        GBP'000    GBP'000  GBP'000 
 
Type of goods or service 
Construction contracts or development 
 agreements                                           87,460    40,554            -              -       (95)  214,367 
Sale of land                                               -         -            -              -          -   93,557 
Sale of completed property                            23,502         -       19,613              -          -   40,528 
Rental income                                          9,804       687            -              -          -   18,873 
Accommodation management                                   -         -            -          4,147          -    7,460 
--------------------------------------------  --------------  --------  -----------  -------------  ---------  ------- 
Total revenue from contracts with customers          120,766    41,241       19,613          4,147       (95)  185,672 
============================================  ==============  ========  ===========  =============  =========  ======= 
Timing of revenue recognition 
Goods transferred at a point in time                  23,502         -       19,613              -          -   43,115 
Services transferred over time                        97,264    41,241            -          4,147       (95)  142,557 
--------------------------------------------  --------------  --------  -----------  -------------  ---------  ------- 
Total revenue from contracts with customers          120,766    41,241       19,613          4,147       (95)  185,672 
============================================  ==============  ========  ===========  =============  =========  ======= 
 
 
Year ended                                           Student  Build to               Accommodation 
 30 September 2020                             accommodation      rent  Residential     management  Corporate    Total 
                                                     GBP'000   GBP'000      GBP'000        GBP'000    GBP'000  GBP'000 
 
Type of goods or service 
Construction contracts or development 
 agreements                                          181,248    92,618            -              -        250  274,116 
Sale of land                                           5,558         -            -              -          -    5,558 
Sale of completed property                            23,502         -       26,268              -          -   49,770 
Rental income                                         15,718     1,373            -              -          -   17,091 
Accommodation management                                   -         -            -          7,586          -    7,586 
--------------------------------------------  --------------  --------  -----------  -------------  ---------  ------- 
Total revenue from contracts with customers          226,026    93,991       26,268          7,586        250  354,121 
============================================  ==============  ========  ===========  =============  =========  ======= 
Timing of revenue recognition 
Goods transferred at a point in time                  29,060         -       20,961              -          -   50,021 
Services transferred over time                       196,966    93,991        5,307          7,586        250  304,100 
--------------------------------------------  --------------  --------  -----------  -------------  ---------  ------- 
Total revenue from contracts with customers          226,026    93,991       26,268          7,586        250  354,121 
============================================  ==============  ========  ===========  =============  =========  ======= 
 
   6.            Exceptional costs 
 
                                                                            6 months to    6 months to    12 months to 
                                                                               31 March       31 March    30 September 
                                                                                   2021           2020            2020 
                                                                                GBP'000        GBP'000         GBP'000 
 COVID-19 costs 
 COVID-19 additional costs of on-site working and in completing 
  developments                                                                        -              -         (2,659) 
 Waiver of academic year 2019/20 final term rents due on leased student 
  accommodation assets 
  due to lockdown measures                                                            -              -         (1,086) 
 Impairment of the right-of-use carrying value of leased student 
  accommodation assets due to 
  reduced 2020/21 student occupancy                                                   -              -         (1,892) 
 Total COVID-19 costs                                                                 -              -         (5,637) 
                                                                          -------------  -------------  -------------- 
 Fire safety recladding works                                                         -              -        (14,800) 
                                                                          -------------  -------------  -------------- 
 Total exceptional costs                                                              -              -        (20,437) 
                                                                          =============  =============  ============== 
 
   7.            Income taxes 

The tax expense for the period has been calculated by applying the estimated effective tax rate for the financial year ending 30 September 2021 of 19.6 % to the profit for the period.

   8.            Earnings per share 

Basic earnings per share ("EPS") amounts are calculated by dividing the net profit or loss for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares in issue during the year.

The following table reflects the income and share data used in the basic EPS computations:

 
                                                                 6 months to          6 months to         12 months to 
                                                                    31 March             31 March         30 September 
                                                                        2021                 2020                 2020 
                                                                     GBP'000              GBP'000              GBP'000 
 Profit for the period attributable to ordinary equity 
  holders of the parent                                               20,782               21,629               21,092 
 Adjusted profit for the period attributable to 
  ordinary equity holders of the parent (excluding 
  exceptional (costs)/income after tax)                               20,782               21,629               37,646 
 
                                                            Number of shares     Number of shares     Number of shares 
 
 Number of ordinary shares for basic earnings per share          256,163,459          255,722,099          255,795,659 
 Adjustments for the effects of dilutive potential 
  ordinary shares                                                    151,310            1,016,400              367,800 
 
 Weighted average number for diluted earnings per share          256,314,769          256,738,499          256,163,459 
 
                                                                       Pence                Pence                Pence 
 Basic earnings per share 
 Basic profit for the period attributable to ordinary 
  equity holders of the parent                                         8.113                8.458                8.246 
 Adjusted basic earnings per share (excluding 
 exceptional (costs)/income after tax) 
 Adjusted profit for the period attributable to 
  ordinary equity holders of the parent                                8.113                8.458               14.717 
 Diluted earnings per share 
 Basic profit for the period attributable to diluted 
  equity holders of the parent                                         8.108                8.425                8.234 
 Adjusted diluted earnings per share (excluding 
 exceptional (costs)/income after tax) 
 Adjusted profit for the period attributable to diluted 
  equity holders of the parent                                         8.108                8.425               14.696 
 
   9.            Dividends 
 
                                                       6 months to   6 months to    12 months to 
                                                          31 March      31 March    30 September 
                                                              2021          2020            2020 
                                                           GBP'000       GBP'000         GBP'000 
 
 Final dividend paid in February 2020 of 5.6 pence               -        14,319          14,319 
 Final dividend paid in February 2021 of 7.35 pence         18,826             -               - 
 
                                                            18,826        14,319          14,319 
                                                      ============  ============  ============== 
 

An interim dividend of 2.6 pence per ordinary share will be paid on 30 June 2021. This dividend was declared after 31 March 2021 and as such the liability of GBP6,660,000 has not been recognised at that date. At 31 March 2021 the Company had distributable reserves available of GBP81,990,000.

   10.          Leases 
 
                                Investment property (leased)   Office Leases   Motor Vehicle Leases     Total 
                                                     GBP'000         GBP'000                GBP'000   GBP'000 
 Cost 
 At 30 September 2019                                158,231           9,411                  1,597   169,239 
 Additions/adjustment                                  3,162               -                    283     3,445 
 Disposals                                                 -               -                  (248)     (248) 
                               -----------------------------  --------------  ---------------------  -------- 
 
 At 31 March 2020 (restated)                         161,393           9,411                  1,632   172,436 
 Additions                                                 -               -                     30        30 
 Disposals                                                 -               -                  (230)     (230) 
                               -----------------------------  --------------  ---------------------  -------- 
 
 At 30 September 2020                                161,393           9,411                  1,432   172,236 
 Additions                                                 -             720                     13       733 
 Disposals                                                 -               -                  (321)     (321) 
                               -----------------------------  --------------  ---------------------  -------- 
 At 31 March 2021                                    161,393          10,131                  1,124   172,648 
                               -----------------------------  --------------  ---------------------  -------- 
 
 
 Depreciation 
 At 30 September 2019           44,550   4,203     875   49,628 
 Charge for the period           3,261     396     305    3,962 
 Disposals                           -       -   (138)    (138) 
                               -------  ------  ------  ------- 
 
 At 31 March 2020 (restated)    47,811   4,599   1,042   53,452 
 Charge for the period           3,261     395     247    3,903 
 Disposals                           -       -   (203)    (203) 
                               -------  ------  ------  ------- 
 
 At 30 September 2020           51,072   4,994   1,086   57,152 
 Charge for the period           3,148     424     123    3,695 
 Disposals                           -       -   (295)    (295) 
                               -------  ------  ------  ------- 
 At 31 March 2021               54,220   5,418     914   60,552 
                               -------  ------  ------  ------- 
 
 
 Impairment 
 At 30 September 2019            3,457       -       -    3,457 
 Charge for the period               -       -       -        - 
                               -------  ------  ------  ------- 
 
 At 31 March 2020 (restated)     3,457       -       -    3,457 
 Charge for the period           2,241       -       -    2,241 
                               -------  ------  ------  ------- 
 
 At 30 September 2020            5,698       -       -    5,698 
 Charge for the period               -       -       -        - 
                               -------  ------  ------  ------- 
 
 At 31 March 2021                5,698       -       -    5,698 
                               -------  ------  ------  ------- 
 
 
 Net Book Value 
 At 31 March 2021               101,475   4,713   210   106,398 
                               --------  ------  ----  -------- 
 At 30 September 2020           104,623   4,417   346   109,386 
                               --------  ------  ----  -------- 
 At 31 March 2020 (restated)    110,125   4,812   590   115,527 
                               --------  ------  ----  -------- 
 At 30 September 2019           110,224   5,208   722   116,154 
                               --------  ------  ----  -------- 
 
   11.          Reconciliation of profit before tax to net cash flows from operating activities 
 
                                                                               12 months 
                                      6 months to             6 months to             to 
                                         31 March                31 March   30 September 
                                             2021                    2020           2020 
                                                               (Restated 
                                                                - note 3) 
                                          GBP'000                 GBP'000        GBP'000 
Profit before tax                          25,838                  26,733         25,314 
Depreciation of leased investment 
 properties and right-of-use 
 assets                                     3,695                   3,903          7,865 
Depreciation of plant and equipment           338                     436            998 
Impairment of leased investment 
 properties                                     -                       -          2,241 
Amortisation of intangible 
 assets                                       280                     280            560 
(Profit) on sale of plant and 
 equipment                                      -                     (3)           (24) 
Finance income                                (1)                   (200)          (245) 
Finance costs                               3,239                   3,084          6,366 
Share of profit in joint ventures               -                       -          (199) 
(Increase)/decrease/(increase) 
 in inventory and work in progress       (63,345)                  25,586          8,566 
Interest capitalised in development 
 land, inventory and work in 
 progress                                     419                     216            465 
(Increase)/decrease in contract 
 assets                                     2,840                (53,633)       (15,944) 
(Increase)/decrease in trade 
 and other receivables                         61                 (7,093)       (10,786) 
Increase/(decrease) in contract 
 liabilities                              (2,430)                   (702)          3,803 
Increase/(decrease) in trade 
 and other payables                       (5,675)                (11,534)         15,987 
Increase/(decrease) in provision 
 for fire safety cladding works             (893)                       -          9,864 
Increase/(decrease) in share-based 
 payment reserve                              167                    (48)             37 
                                      -----------  ----------------------  ------------- 
Net cash (outflow)/inflow from 
 operating activities                    (35,467)                (12,975)         54,868 
                                      -----------  ----------------------  ------------- 
 
   12.          Analysis of net cash/(debt) 
 
                                                    31 March        31 March      30 September 
                                                        2021            2020              2020 
                                                     GBP'000         GBP'000           GBP'000 
 
  Cash at bank and in hand                            88,727          72,394           134,513 
Other interest-bearing loans                           (728)           (866)             (631) 
Bank loans                                          (56,275)        (34,016)          (39,036) 
                                              --------------  --------------  ---------------- 
Net cash before deducting lease liabilities           31,724          37,512            94,846 
Lease liabilities                                  (131,683)       (137,647)         (134,453) 
                                              --------------  --------------  ---------------- 
Net debt                                            (99,959)       (100,135)          (39,607) 
                                              ==============  ==============  ================ 
 
   13.          Employee Benefits - long-term incentive plans 

In January 2021, 1,230,560 share awards were made under the Watkin Jones plc Long-Term Incentive Plan (the Plan). The awards have an exercise price of one penny per share and become exercisable after three years from the date of grant subject to continued employment and the Company's Earning per Share (EPS) and Total Shareholder Return (TSR) performance as follows:

 
  TSR (50% of award)     % of TSR award vesting(1) 
----------------------  -------------------------- 
   250 pence or less                0% 
----------------------  -------------------------- 
 325 pence or greater              100% 
----------------------  -------------------------- 
 
 
 EPS growth (50% of award)    % of EPS award vesting(1) 
---------------------------  -------------------------- 
      10% p.a. or less                   0% 
---------------------------  -------------------------- 
      20% p.a. or more                  100% 
---------------------------  -------------------------- 
 

(1) Vesting on a straight-line basis between target levels

The fair value of share awards granted subject to EPS conditions is 194.8 pence and has been estimated as the market price of an ordinary share of the Company at the date the award was granted less the one penny exercise price for the award. The fair value of the share awards subject to TSR performance conditions has been estimated at the grant date using a Monte Carlo valuation model using the following assumptions:

 
 Share price                                                  195.8 pence 
 Exercise price                                                 1 penny 
 Expected term                                                  3 years 
 Risk-free interest rate                                        (0.07)% 
 Are dividend equivalents receivable for the award holder?        Yes 
 Expected volatility                                             31.3% 
 

This resulted in an estimated fair value for an award with TSR performance conditions of 63.78 pence. For the six months ended 31 March 2021, the amount charged to the statement of comprehensive income and credited to share based payment reserve was GBP167,575 (31 March 2020: (GBP47,765)).

- Ends -

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR FFFLIEEIDLIL

(END) Dow Jones Newswires

May 18, 2021 02:00 ET (06:00 GMT)

1 Year Watkin Jones Chart

1 Year Watkin Jones Chart

1 Month Watkin Jones Chart

1 Month Watkin Jones Chart
ADVFN Advertorial
Your Recent History
LSE
WJG
Watkin Jon..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20210725 14:47:57