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(Sharecast News) - Watkin Jones said on Tuesday that trading for the year ended 30 September was in line with expectations, supported by a stronger second half and improved operational delivery across its development portfolio.
The AIM-traded company said it expected to report revenue of about 280m and adjusted operating profit in line with current market forecasts.
It said its performance was underpinned by transactions including the sale of its joint-venture student development in Glasgow, announced in September, and a development partnership agreed in August, alongside steady progress on previously sold schemes.
Cash management remained a key focus during the year, with gross cash of roughly 80m and net cash of 70m at the end of September, compared with 97m and 83m respectively a year earlier.
Watkin Jones said its cash position had strengthened after year end, as several receipts including 10m from the Glasgow transaction were received in early October.
Operationally, the group said it maintained a strong focus on cost control and project execution, completing three schemes comprising around 600 rooms on schedule in the second half.
Its 'Refresh' initiative, aimed at refurbishing and improving existing assets, continued to gain traction with three projects underway and a growing pipeline.
Three additional completions totalling about 1,900 rooms were expected in the new financial year.
Watkin Jones also signed three development partnerships during the period, covering affordable homes in St Helens, an aparthotel in Southwark, and student accommodation in Bristol.
The company said all three projects had now commenced on site.
It added that it continued to source new opportunities selectively, with three future schemes amounting to around 1,000 rooms exchanged during the year, subject to planning.
The group made further progress on building safety remediation, completing works on six buildings and maintaining its provision under review as investigations and discussions with property owners continue.
Looking ahead, Watkin Jones said market conditions remain challenging and transaction timetables had lengthened in some cases, but that it was entering the new financial year with a strong pipeline of opportunities.
It added that the medium-term outlook remained positive, supported by the structural shortage of rental and student housing and continued investor demand for high-quality assets in undersupplied markets.
At 0854 BST, Watkin Jones shares were down 1.91% at 30.8p.
Reporting by Josh White for Sharecast.com.