The Watkin Jones Board has proposed a final dividend of 4.5 pence per share (FY21: 5.6 pence per share). Taken together with the interim dividend of 2.9 pence per share (FY21: 2.6 pence per share), this will give a total dividend for the year of 7.4 pence per share (FY21: 8.2 pence per share). The dividend is 2.0x covered by adjusted earnings, in line with our stated policy.
Other financial highlights include:
Revenue of £407 million, reflecting record forward sales of £900 million and increasing contribution from our BTR developments. 5.4% lower year on year, impacted by the market volatility in September which led to two anticipated forward sales being deferred.
Adjusted operating profit of £54.7 million reflecting strong operational delivery and build cost management, but 4.5% below FY21 due to:
o Lower than expected forward sales in September 2022;
o Some pricing and margin softness on sales concluded in the second half; offset by
o Higher than anticipated profit of £18.3 million from the sale of two operational PBSA assets as part of a portfolio sale.
Strong balance sheet, with gross and net cash (adjusted) as at 30 September 2022 of £110.8 million and £82.6 million respectively.
Revenue of £407 million, reflecting record forward sales of £900 million and increasing contribution from our BTR developments. 5.4% lower year on year, impacted by the market volatility in September which led to two anticipated forward sales being deferred.
Adjusted operating profit of £54.7 million reflecting strong operational delivery and build cost management, but 4.5% below FY21 due to:
o Lower than expected forward sales in September 2022;
o Some pricing and margin softness on sales concluded in the second half; offset by
o Higher than anticipated profit of £18.3 million from the sale of two operational PBSA assets as part of a portfolio sale.
Strong balance sheet, with gross and net cash (adjusted) as at 30 September 2022 of £110.8 million and £82.6 million respectively.
Continued operational resilience of the business:
o Eight developments delivered in the year
o Build costs and supply chain well managed throughout the year in the face of a challenging industry backdrop
o Good progress in all phases of their development model including land acquisitions and planning consents.
Residential for Rent sector has continued to perform strongly with occupancy and rental growth driven by tenant demand; this is expected to lead to a recovery in investor demand for their assets in FY23.
Record revenues from Fresh with 22,896 beds under management and bookings well advanced for the next academic year.
An exceptional charge of £30.4 million has been recognised in the year for the potential costs of the remediation work required under the Building Safety Act, which they expect will be incurred over a period of up to 5 years.
Continued operational resilience of the business:
o Eight developments delivered in the year
o Build costs and supply chain well managed throughout the year in the face of a challenging industry backdrop
o Good progress in all phases of their development model including land acquisitions and planning consents.
Residential for Rent sector has continued to perform strongly with occupancy and rental growth driven by tenant demand; this is expected to lead to a recovery in investor demand for ttheir assets in FY23.
Record revenues from Fresh with 22,896 beds under management and bookings well advanced for the next academic year.
An exceptional charge of £30.4 million has been recognised in the year for the potential costs of the remediation work required under the Building Safety Act, which they expect will be incurred over a period of up to 5 years.
