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Watkins Jones Report Rise in Revenue & Fall in Profit

Posted by Calum Martin in

Image courtesy of Flickr, (View licence)

Property developers and builders, Watkins Jones, have reported on the performance from the first half of their current financial year, in which revenue increased whilst profits fell.

Despite the increased revenue, it is expected that gross profit and operating profit are below last year due to "specific" factors in this financial year.

These factors included a higher proportion of land sales in the period, which generated a lower margin than the resulting development activity. The three land sales completed totalled £55m, compared to none reported in the previous year. Another reported factors was the portfolio sale of a number of purpose-built student accommodation schemes.

The property group currently boasts a development pipeline of approximately £1.8bn, an increase year-on-year from £1.4bn.

Gross cash stood at £45m, down from £80m, and net cash of £27m, down from £31m.

Chief executive of Watkin Jones. Richard Simpson, commented: "We have continued to build on the positive momentum from the second half of last year. We are experiencing very strong investor demand across the markets in which we operate and are well progressed with a number of significant forward sales. This, together with our current momentum, gives confidence in delivery of our full year expectations."

Watkins Jones are expected to release interim results for the six month period ending 31st March on the 17th May.