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(Sharecast News) - Watkin Jones has reported a small positive operating profit for the half year ended 31 March on Tuesday, supported by disciplined cost management and a focus on construction delivery, despite ongoing challenges in the residential development market.
The AIM-traded company noted that schemes under construction traded in line with margin guidance during the period.
Two new development partnerships were signed and had commenced on site - one delivering new homes in St Helens and the other an aparthotel in Southwark.
The group said it was continuing to engage with investors on development opportunities and reported strong interest in its pipeline, particularly within its growing Refresh and development partnership models.
Watkin Jones ended the period with a gross cash balance of £87m and net cash of around £73m, up from £67 million and £44m respectively in the prior year, reflecting continued effective cash control.
While the company was closely monitoring market volatility and conditions, especially regarding transactional liquidity in the residential sector, it said it expected its current pipeline to support a stronger performance in the second half of the year.
At 1520 BST, shares in Watkin Jones were down 4.85% at 31.4p.
Reporting by Josh White for Sharecast.com.
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