Watkin Jones (WJG) investor relations material

Executive summary

• Delivered resilient half-year performance with strong cash management, reduced debt, and operational execution, despite challenging UK real estate and economic conditions.

• Adjusted operating profit was GBP 0.4 million, consistent with the prior year, supported by cost management and profit on disposal of a subsidiary.

• Diversification strategy yielded over 40% of revenues from new activities, with over GBP 100 million forecasted for FY26.

• Maintained a visible pipeline of GBP 2 billion, with c.65% contractually secured and c.50% with planning consent.

• No interim dividend declared to prioritize financial flexibility amid market disruption.

Financial highlights

• Revenue declined to GBP 100.2 million from GBP 129.2 million year-over-year, mainly due to fewer transactions and JV structuring.

• Trading profit margin increased to 14.2% (up from 11.2% HY25), driven by delivery efficiency and cost control.

• Net cash at half year was GBP 61.3 million, with gross cash at GBP 67.1 million and total liquidity (including facilities) over GBP 110 million.

• Net asset position at GBP 124.7 million or 45p per share.

• Net provision for building safety reduced by over GBP 8 million to GBP 38 million.

Outlook and guidance

• Pipeline maintained at GBP 2 billion, with GBP 300 million contractually secured for delivery over the next three years.

• GBP 90 million of secured pipeline to be delivered in the second half of the year.

• Focus remains on resilience, cash preservation, and readiness to capitalize on market recovery.

• Return to progressive dividend policy targeted once market visibility and profitability improve.

• FY26 outturn dependent on H2 market conditions and successful forward sales.