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Watkin Jones (WJG) investor relations material
Watkin Jones H1 2025 (Q&A) earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Delivered resilient operational performance in H1/HY25, achieving an operating profit of £0.4m and gross cash of £87m, despite challenging market conditions.
Maintained a diversified and robust business model, focusing on delivery, cash management, and cost control.
High-quality development pipeline of over 11,500 beds and £1.95bn in value, supporting future growth.
Completed three built-to-rent schemes ahead of schedule and expanded Fresh property management by nearly 2,000 units year-on-year.
No interim dividend declared to maintain financial flexibility amid market disruption.
Financial highlights
Revenue for H1/HY25 was £129.2m, down from £175.1m in HY24, with contracted revenue of £105m for the balance of the year.
Gross profit margin improved to 11.2% (HY24: 10.5%) year-on-year, supported by strong cost control.
Net cash position increased by nearly £30m year-on-year to £73.4m; total cash and available facilities at £123m.
Overheads reduced by around 3% year-on-year despite inflation of nearly 3%.
Basic EPS at 0.05 pence (HY24: 0.99 pence).
Outlook and guidance
Market conditions remain challenging, with transaction timelines extended due to economic volatility.
Focus remains on cost control, delivery management, and cash flow.
Full-year performance in line with market expectations depends on successful H2 pipeline transactions.
Gross margins expected to gradually rise towards 14% over the next few years as legacy lower-margin assets are replaced.
Medium-term outlook is robust, supported by strong sector fundamentals in PBSA and BTR.
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