Business
FY24 Trading Update
FY24 Trading Update.
About this update from Watkin Jones Plc
[{"type":"text","content":"\n\n21 August 2024\n \n \nWatkin Jones plc\n(the 'Group')\n \nFY24 Trading Update\n \nWatkin Jones provides the following trading update for the year ended 30 September 2024 (the 'year' or 'FY24').\n \nFY24 trading\n \nAs set out in our half year results announcement on 21 May 2024, we had a number of schemes being actively marketed, with the subsequent sale of a substantial PBSA development located in Stratford, London, announced in July. Nevertheless, overall market activity through the summer has been slower than anticipated, principally due to the continued uncertainty over the pace of interest rate cuts, and as such we believe it is now unlikely that we will close any further transactions before the financial year end.\n \nThe Group has continued to execute effectively on its broader operational objectives during the second half of the year. Encouragingly, our new Refresh initiative is gaining good traction in the market with our first project completed and we are seeing a growing pipeline of opportunities. Our in-build schemes continue on track, with two further practical completions expected in this financial year.\n \nWhile the absence of further forward funds prior to the year end will result in performance being lower than previously anticipated, the Group is expected to show material improvement in FY24, with adjusted operating profit currently expected to be in the range of £10m to £12m (FY23: £0.2m).\n \nThe Group has been effective in its focus on cash generation through the second half; at 30 September 2024, gross cash is anticipated to be approximately £80 million (31 March 2024: £67m) and net cash is anticipated to be approximately £65m (31 March 2024: £44m), ahead of previous expectations.\n \nThe Group's position on the exceptional provision for remedial works for legacy properties remains unchanged.\n \nOutlook\n \nWhile the pace of recovery in our markets has been slower than expected, the UK interest rate cut in August 2024, together with forecast future cuts, should contribute to improved forward fund liquidity. The lower number of transactions in FY24 will, however, have a consequential impact on the results in FY25, given that schemes will not contribute to revenue in future periods until they are forward sold. While we have a number of fu...