Sales, profits slide at Watkin Jones

(Sharecast News) - Watkin Jones posted a slide in annual sales and profits on Tuesday, weighed down by challenging market conditions, but insisted it was well placed for the current year.

Revenues at the developer and manager of residential-for-rent properties, including student accommodation, fell to �279.8m from �362.4m in the year to 30 September. Adjusted pre-tax profits tumbled to �5.6m from �9.2m, while on a statutory basis, the pre-tax loss widened to �8.7m from �0.3m a year previously.

Alex Pease, chief executive, acknowledged that market conditions had been "challenging".

He continued: "The nature of the Watkin Jones operating model inevitably means that the economic challenges of the last few years and lack of investment liquidity can still be seen in this year's numbers, as we deliver on transactions which we first evaluation three to four years ago."

However, looking to the current year, and Watkin Jones said it had started with "encouraging visibility".

In particular, it flagged around �340m of contractually-secured forward sold revenue for the 2026 full year and beyond.

Contacts have also been exchanged on a scheme in Bristol to deliver 484 student beds, conditional on building control approval.

Pease said: "While a strong pipeline, highly-skilled and motivated workforce and continue revenue diversification, we enter 2026 with confidence in the strength of our operational platform and our ability to create long-term value for our stakeholders."

Total development pipeline opportunities currently stand at around �2bn, the firm noted.

Shares in the AIM-listed group were off 1% at 27.4p as at 0930 GMT.