UK
Ireland
Scotland
London
Construction News
01/06/2017
Watkin Jones Reports Strong First Half Performance
Welsh builder Watkin Jones has reported a rise in profits for the first six months of the year to 31 March 2017.
In its half-year results, the company's Gross profit's rose by 23.8% from £23.5 million to £29.1m.
While profit before tax also increased by 26.6% to £21.1m (2015; £16.7m), revenue was down 8% to £133.7m. However, the company revealed this is expected due to the timing of forward development sales and £11.7m of non-repeating inventory sales of completed residential apartments in the first half of the previous year. Revenue is expected to be stronger in the second half of the year.
Strong profit growth was driven by student accommodation developments, with a pipeline of 31 developments worth £920m set to be delivered by 2020.
Mark Watkin Jones, Chief Executive Officerm said: "We are very pleased to be reporting a strong set of half year results. The Group has seen good profit growth in the first half, driven by our student accommodation developments which are fundamental to the business.
"We are seeing increased institutional demand for good quality purpose built assets, and there are several new international funds that have entered the market recently, which highlights the continued attractiveness of the sector. Our forward sale model and student accommodation pipeline of 31 developments provides us with excellent visibility on earnings and cash flow.
"We are encouraged by the progress we have made in the Build to Rent sector and we are pleased that the Group has already secured an excellent site in London, with solid progress also being made on a number of other specific development projects. Our student accommodation management businesses Fresh Student Living has had an excellent first half and is contributing well to overall Group performance.
"The Group has made progress in developing the Five Nine Living business to provide similar letting and operational management services for the Build to Rent Sector. Like our student accommodation development business, accommodation management provides us with good future earnings visibility."
(LM)
In its half-year results, the company's Gross profit's rose by 23.8% from £23.5 million to £29.1m.
While profit before tax also increased by 26.6% to £21.1m (2015; £16.7m), revenue was down 8% to £133.7m. However, the company revealed this is expected due to the timing of forward development sales and £11.7m of non-repeating inventory sales of completed residential apartments in the first half of the previous year. Revenue is expected to be stronger in the second half of the year.
Strong profit growth was driven by student accommodation developments, with a pipeline of 31 developments worth £920m set to be delivered by 2020.
-- Advertisement --
Mark Watkin Jones, Chief Executive Officerm said: "We are very pleased to be reporting a strong set of half year results. The Group has seen good profit growth in the first half, driven by our student accommodation developments which are fundamental to the business.
"We are seeing increased institutional demand for good quality purpose built assets, and there are several new international funds that have entered the market recently, which highlights the continued attractiveness of the sector. Our forward sale model and student accommodation pipeline of 31 developments provides us with excellent visibility on earnings and cash flow.
"We are encouraged by the progress we have made in the Build to Rent sector and we are pleased that the Group has already secured an excellent site in London, with solid progress also being made on a number of other specific development projects. Our student accommodation management businesses Fresh Student Living has had an excellent first half and is contributing well to overall Group performance.
"The Group has made progress in developing the Five Nine Living business to provide similar letting and operational management services for the Build to Rent Sector. Like our student accommodation development business, accommodation management provides us with good future earnings visibility."
(LM)
Latest Construction News
05/02/2025
Stockport Mayoral Development Corporation (MDC) and ECF, a joint venture between Homes England, Legal & General, and Muse, have selected Vinci as the preferred contractor for Phase 1 of Stockport 8, a £350 million residential development west of Stockport town centre.
The decision follows a competi
05/02/2025
Vistry Group has finalised contracts for a significant housing development in Hinckley, Leicestershire, securing outline planning permission to deliver 475 new homes in the area.
The development, located east of Stoke Road and north of Normandy Way in the town's northern region, has a projected val
05/02/2025
Wilten Construction has been awarded a second Design and Build contract at Gateway 14 by client Gateway 14 Ltd and Jaynic.
The project involves the development of a state-of-the-art, three-storey Skills and Innovation Centre spanning 35,000 sq ft in the heart of Gateway 14. Designed to achieve BREE
05/02/2025
Knowsley Council has approved a major housing development in Kirkby, giving the green light to 800 new energy-efficient homes in the town's centre.
The decision also secures £7.7 million in Section 106 contributions from developer Barratt David Wilson Homes, further boosting local investment.
The
05/02/2025
Keepmoat Homes has announced plans to invest over £50 million in three new housing developments across Calderdale, aiming to deliver more than 200 new homes.
The developments, undertaken in partnership with Calderdale Council, form part of the North Halifax Transformation Programme, a local authori
05/02/2025
Essential renewal work at Skerne Road level crossing in Driffield has been completed. Over a six-day period, engineers replaced decades-old equipment, installing a state-of-the-art operating system, replacing the level crossing deck, and resurfacing the road.
The newly installed operating system is
05/02/2025
Construction firm GRAHAM is currently carrying out essential restoration work at the National Railway Museum in York, replacing the Grade II listed roof structure at Station Hall.
Originally built between 1875 and 1877 as a goods station, Station Hall now houses the museum’s six royal carriages.
05/02/2025
Mezzanine floors are commonly associated with additional storage or expanded floor space, but did you know they can also have a profound impact on employee productivity and morale? At Doity Engineering, we specialise in designing and installing mezzanine floors for
05/02/2025
Construction work is commencing on a new solar array at Weeton Barracks in Lancashire that will generate over one third of the site’s energy needs.
The work has been funded under the British Army’s Project Prometheus, a scheme that is increasing renewable energy across the army estate through inst
05/02/2025
The regeneration of Hartlepool's waterfront has reached a significant milestone with a £631,000 grant from The National Lottery Heritage Fund.
The funding will support the development phase of the 'Tides of Change' project, aimed at transforming the visitor experience at the Museum of Hartlepool a
