Watkin Jones (WJG) H1 2026 Pre recorded earnings summary

Executive summary

• Delivered resilient operational performance and strong project execution despite a highly challenged U.K. real estate market marked by inflation, political instability, and suppressed investment liquidity.

• Continued progress in diversification, expanding into adjacent sectors such as co-living, single family homes, hotels, and retirement living, with over 40% of revenue now from diversified activities.

• Maintained discipline in cash and cost controls, supporting capacity for future growth and volume, with strong cash and reduced debt.

• Leveraged platform and specialist skillsets to align resources with market conditions and drive growth.

• No interim dividend declared to maintain financial flexibility.

Financial highlights

• Revenue for HY26 was £100.2m, down from £129.2m in HY25, mainly due to JV structuring and lower transactional activity.

• Gross trading profit margin increased to 14.2% from 11.2% in HY25, reflecting delivery efficiency and cost control.

• Operating profit remained stable at £0.4m, in line with HY25.

• Net cash position at £61.3m, with gross cash over £67m and total cash and available facilities exceeding £110m.

• Net assets at £124.7m or 45p per share, with a reduction in borrowings and BSA provision down to £38m.

Outlook and guidance

• Pipeline maintained at circa £2bn, with 65% contractually secured and nearly 50% with planning consent.

• Secured revenue of circa £300m, with circa £90m to be delivered in H2 FY26.

• Focus remains on cost, delivery management, and cash flow, with continued emphasis on diversification and operational efficiency.

• H2 performance depends on successful forward sales; market conditions remain challenging but medium-term prospects are attractive.

• FY26 outturn dependent on market conditions and timing of divestments; five schemes currently in the market attracting capital interest.