Watkin Jones (WJG) investor relations material

Executive summary

• Delivered resilient operational performance in H1/HY25 with operating profit of £0.4m and improved gross margin to 11.2%, despite sector headwinds and lower revenues.

• Maintained strong cash position: gross cash £87m, net cash £73.4m, and extended £50m HSBC facility by two years.

• Progressed diversification strategies, including development partnerships and refresh, with three transactions closed and a growing pipeline.

• Completed three build-to-rent schemes ahead of schedule and added nearly 2,000 units under management via Fresh.

• High-quality pipeline of nearly £2bn gross development value, with four sites under offer and 1,300+ units targeted for planning consent by year-end.

Financial highlights

• Revenue for HY25 was £129.2m, down from £175.1m in HY24, mainly due to fewer completions and lower transactional activity.

• Gross margin improved to 11.2% (HY24: 10.5%), with core trading gross profit margin up year-over-year.

• Net cash increased by nearly £30m to £73.4m year-over-year; cash and available facility headroom at £123m.

• No interim dividend proposed to preserve financial flexibility and fund growth opportunities.

• Net assets rose to £132.6m (47p/share, ex-goodwill); inventory and WIP up since year-end due to pipeline investment.

Outlook and guidance

• Market conditions remain challenging, but focus is on cost, delivery management, and cash flow.

• H2 focus on delivering £105m secured pipeline at target margins; several forward sales targeted to meet full-year expectations.

• Over a quarter of pipeline has planning consent, ready for near-term revenue and profit.

• Margins expected to gradually improve toward 14% as legacy low-margin assets work through.

• Medium-term outlook remains robust, underpinned by strong sector fundamentals in PBSA and BTR markets.