Watkin Jones enjoys return to profit in H1

Watkin Jones has returned to profit in the first half of the year after undertaking a restructuring process. Profit rose to £2.1m in the half-year ending 31 March, from a loss of £800,000. Revenue increased by 13.8% to £175.1m. Adjusted operating profit was £4m for the period, excluding a £1.1m exceptional charge for people restructuring costs. Watkin Jones said it expected the figure to reach £15m for the full 2024 financial year. The developer’s total secured pipeline stood at £1.4bn. Plans have been submitted for a further 3,000 student bedrooms across four schemes. Watkin Jones said the investment market was “gradually showing signs of recovery as economic sentiment improves, albeit a slower than expected reduction in interest rates has potential to impact pace of recovery”. Chief executive Alex Pease said: “Alongside progress on our schemes in build, we have continued to develop the group’s longer-term pipeline, with new land secured and further planning applications submitted. “There has been gradual improvement in sentiment in the property investment market, which we expect to support a continued recovery in forward fund transaction demand, as evidenced in the forward sale of our PBSA scheme in Bristol in March. “With our established and specialist end-to-end development platform and a sector leading reputation in the BTR and PBSA markets in the UK, our focus remains on positioning the business to best capitalise on a market recovery.”