Student housing and residential developer Watkin Jones has reported profit and revenue rises, driven by growth in its student accommodation business.
The company said its revenue and underlying earnings during the year to 30 September were “slightly ahead” of previous expectations.
Pretax profit increased by 25.6% to £54.3m during the year to September, on revenue growth of 20% to £363.1m. The company has proposed a 7.6p dividend per share, increasing by 15.2% on the previous year.
Student accommodation development accounted for £312.7m of its revenue.
Watkin Jones completed 10 student housing developments (3,415 beds) in during its 2018 financial year, with a total secured development pipeline of 7,534 student beds across 17 sites for delivery by the end of September 2021.
The company also entered into development agreements with investors to deliver apartment schemes in Reading and Wembley, for occupation in 2021. Its development pipeline, including these, tallied around 1,500 flats across seven sites.
The board said it was considering the possibility of establishing a new investment vehicle for the build-to-rent business.
New chief executive Richard Simpson, who replaces Mark Watkin Jones in the role, said: “We continue to have excellent visibility of our future revenues and earnings, supported by the pipeline of forward sold and secured sites for student accommodation.
“The locations and forward sale values we have achieved for these schemes underpin our earnings expectations from this division over the next 12 months and beyond.
“Our success in securing the significant build to rent development agreements in Reading and Wembley, together with our secured pipeline of sites, is highly encouraging.
“In addition, our residential and accommodation management divisions are well positioned to contribute to progressive earnings growth. As a result, we remain confident in the outlook for the group.”
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