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(Sharecast News) - Watkin Jones said on Wednesday that its first-half operating profit was expected to be broadly in line with the prior year, despite lower revenue caused by reduced transactional activity.
The AIM-traded residential-for-rent developer and manager said it continued to deliver strongly during the six months ended 31 March, with in-build schemes achieving margins in line with guidance.
It said operating profits for the first half of 2026 were expected to be similar to the same period in 2025.
The group signed two new transactions during the period, comprising a further purpose-built student accommodation scheme in Bristol through its existing joint venture with Maslow Capital, and a scheme to deliver a hotel on a brownfield site in Wimbledon.
Watkin Jones said it was actively marketing a number of schemes with potential to support an improved second-half performance.
The company said it continued to see attractive opportunities in its Refresh and Development Partnerships businesses.
Its Development Partnerships pipeline increased by 20%, helping keep the group's overall pipeline in line with the level reported at the end of the 2025 financial year.
Cash management remained strong, with gross cash of about 67m at 31 March, compared with 80m at the end of the 2025 financial year.
Net cash stood at about 61m, down from 70m.
Looking ahead, Watkin Jones said it continued to monitor the geopolitical and economic backdrop and any impact on confidence and activity in residential investment and construction markets.
The group said it was taking steps to mitigate potential increases in build cost inflation where possible, including earlier procurement of selected subcontract packages and forward buying of materials.
Watkin Jones said the adverse movement in the UK interest rate outlook since early March had created greater uncertainty around future transactional liquidity conditions.
However, it said it would remain agile in optimising its pipeline while continuing to diversify revenue streams.
At 1236 BST, shares in Watkin Jones were down 1.99% at 22.64p.
Reporting by Josh White for Sharecast.com.
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