TIDMWJG
RNS Number : 3933P
Watkin Jones plc
17 November 2016
For immediate release 17 November 2016
Watkin Jones plc
('Watkin Jones' or the 'Group')
Pre-Close Trading Statement
Watkin Jones plc (AIM:WJG), a leading UK developer and
constructor of multi occupancy property assets, with a focus on the
student accommodation sector, is pleased to provide a trading
update for the year ended 30 September 2016 (the 'period').
The Board expects to report a successful financial year with
trading in line with its expectations.
As announced on 27 September 2016, Watkin Jones successfully
completed, ahead of the 2016/17 academic year, ten developments
across the UK with a total of 3,819 student beds. Watkin Jones has
a record of on-time delivery of schemes and all developments
expected to be completed ahead of the 2017/2018 academic year,
remain on track. The Group continues to add sites to its strong
development pipeline and, at 30 September 2016, it had a total of
21 developments with 6,814 beds targeted for delivery during 2017
and 2018.
The Group's pipeline beyond 2018 is also looking robust with
over 2,000 beds across a number of sites already secured. This
includes the proposed redevelopment of the Duncan House site in
Stratford, London, to provide 511 beds of student accommodation, 44
residential apartments and approximately 28,000 square feet of
academic and office space. The scheme has a gross development value
in excess of GBP100 million and is due for delivery in 2019.
Fresh Student Living, the Group's asset management subsidiary,
continues to progress well, and now has 12,337 beds under
management for the 2016/17 academic year (8,310 under management
during the 2015/16 academic year).
The pipeline going forward provides the Group with strong
visibility of earnings and cash flows and underpins our strategy in
the near term. As a result, and with interest from investors in
Purpose Built Student Accommodation remaining consistently strong,
the Board remains confident in the outlook for the Group.
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc,
said: "It has been a busy year for the Group and excellent progress
has been made. Not only have we delivered 3,819 beds across ten
sites in the UK, but we have also successfully made the transition
to being a public company. Our performance in the year reinforces
the attractiveness of our end-to-end business model to investors,
whilst our development pipeline continues to provide excellent
visibility of earnings and cashflow."
The Group will be announcing its Final Results on Wednesday, 18
January 2017. An analyst briefing will be held at 09.30hrs at the
offices of Buchanan, 107 Cheapside, London EC2V 6DN.
- Ends -
For further information:
Watkin Jones plc
Mark Watkin Jones, Chief Tel: +44 (0) 1248 362
Executive Officer 516
Phil Byrom, Chief Financial www.watkinjonesplc.com
Officer
Zeus Capital Limited (Nominated Adviser
& Joint Broker)
Corporate Finance
Dan Bate / Nick Cowles / Jamie Peel Tel: +44 (0) 161 831
1512
Corporate Broking Tel: +44 (0) 20 3829
5000
Dominic King / Benjamin Robertson www.zeuscapital.co.uk
Peel Hunt LLP (Joint Broker) Tel: +44 (0) 20 7418
8900
Mike Bell / Matthew Brooke-Hitching www.peelhunt.com
Media enquiries:
Buchanan
Henry Harrison-Topham / Richard Tel: +44 (0) 20 7466 5000
Oldworth / Jamie Hooper
watkinjones@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Watkin Jones is a leading UK developer and constructor of multi
occupancy property assets, with a focus on the student
accommodation sector. The Group has strong relationships with
institutional investors, and a good reputation for successful,
on-time-delivery of high quality developments. Since 1999, Watkin
Jones has delivered over 31,800 student beds across 98 sites,
making it a key player and leader in the UK purpose built student
accommodation market. In addition, Watkin Jones has been
responsible for over 50 residential developments, ranging from
starter homes to executive housing and apartments.
The Group's competitive advantage lies in its experienced
management team and business model, which enables it to offer an
end to end solution for investors, delivered entirely in-house with
minimal reliance on third parties, across the entire life cycle of
an asset. Key components of the business model are:
-- Site identification - extensive experience of site
identification and acquisition facilitates high quality sites being
acquired;
-- Planning consents - in depth knowledge and experience of the
planning consent process specific to this type of asset facilitates
high success rates on planning applications;
-- In-house construction and delivery - in-house construction
expertise, management and delivery limits reliance on third parties
and, together with favourable contractual relationships with key
suppliers, enhances control of cost;
-- Funding structure - forward sale model reduces risk for
Watkin Jones and provides security and visibility of the asset
pipeline for investors. The Group has strong relationships with
blue chip investors, including a number that are repeat investors
in Watkin Jones developments; and
-- Asset management - dedicated property management division
provides a continued service solution to investors post development
completion and completes the 'end to end' business model.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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