Watkin Jones plc Pre-Close Trading Statement (0200V)
31 October 2017 - 6:00PM
UK Regulatory
TIDMWJG
RNS Number : 0200V
Watkin Jones plc
31 October 2017
For immediate release 31 October 2017
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 and Build to Rent sectors, today provides the
following trading update for the year ended 30 September 2017 (the
'period').
The Board is pleased to announce that the Group has successfully
achieved its operational objectives for the period and that it
expects to report underlying earnings for the financial year in
line with its expectations.
In the period Watkin Jones delivered, ahead of the 2017/18
academic year, ten student accommodation developments across the UK
with a total of 3,314 beds. All ten student accommodation
developments (3,415 beds) scheduled for delivery in FY18, ahead of
the 2018/2019 academic year, have been forward sold and are on
track. Looking to FY19, the Group has already forward sold five
student accommodation developments (2,599 beds) for delivery ahead
of the 2019/20 academic year. In addition to these forward sold
developments, Watkin Jones has a further eight secured development
sites (2,959 beds) targeted for delivery during FY19 to FY21.
Watkin Jones is continuing to gain momentum in the Build to Rent
sector. The Group has ownership of three development sites and is
in separate negotiations on several other opportunities, from which
it is targeting to develop approximately 1,500 units during FY18 to
FY22, subject to securing the necessary planning consents. The
Board is encouraged by both the Group's progress in securing Build
to Rent opportunities and the prospects for growth in this market
going forward.
Fresh Property Group, the Group's accommodation management
subsidiary which trades under the brand names of Fresh Student
Living and Five Nine Living, performed in line with the Board's
expectations for the period and now has 16,082 student beds across
53 schemes under management for the 2017/18 academic year (12,337
student beds under management at the start of the 2016/17 academic
year across 44 schemes).
Investor demand for purpose built student accommodation remains
strong and the Group's robust development pipeline continues to
provide strong future visibility of earnings and cash flows. The
Group is well positioned to expand its operations into the Build to
Rent sector as further sites and opportunities are being secured
and investor appetite gathers momentum. As a result, the Board
remains confident in the future outlook for the Group.
Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc,
said: "We are pleased to have delivered on our development pipeline
objectives for the year, alongside a strong operational performance
and expect to report underlying earnings in line with the Board's
expectations.
2017 has been another year of significant progress for the Group
with our student accommodation, Build to Rent and accommodation
management divisions all performing strongly, providing us with
excellent future earnings and cash flow visibility. This
demonstrates the robustness of our model and ability to deliver
significant returns for our shareholders."
The Group will be announcing its Final Results on Monday, 15
January 2018. 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
Peel Hunt LLP (Nominated Adviser & Joint Corporate Tel: +44 (0) 20
Broker) 7418 8900
Mike Bell / Justin Jones / Matthew Brooke-Hitching www.peelhunt.com
Jefferies Hoare Govett (Joint Corporate Broker) Tel: +44 (0) 20
7029 8000
Max Jones / Will Souter www.jefferies.com
Media enquiries:
Buchanan
Henry Harrison-Topham / Richard Tel: +44 (0) 20 7466 5000
Oldworth
Jamie Hooper / Steph Watson
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 and Build to Rent sectors. 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 34,500 student beds
across 107 sites, making it a key player and leader in the UK
purpose built student accommodation market. In addition, the Fresh
Property Group, the Group's specialist accommodation management
company, manages over 16,000 student beds on behalf of its
institutional clients. Watkin Jones has also been responsible for
over 50 residential developments, ranging from starter homes to
executive housing and apartments. The Group is now expanding its
operations into the build to rent sector.
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.
Watkin Jones was admitted to trading on AIM in March 2016 with
the ticker WJG.L. For additional information please visit:
www.watkinjonesplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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