Watkin Jones Plc · LSE:WJG
Watkin Jones — HY25 Earnings Presentation
30 slides from Watkin Jones's earnings presentation, May 29, 2025
Slide 1: Positive operational progress, underpinned by a resilient and diversified model
Positive operational progress, underpinned by a resilient and diversified model Half Year Results to Alex Pease 31 March 2025 Chief Executive Officer Simon Jones ChiefBirmingham Sherlock Street, Financial Officer 29 May 2025
Slide 2: Agenda
Agenda 1. Overview 2. Market Review 3. HY25 Financial Results 4. Outlook & Pipeline 5. Divisional Update 6. Summary Alex Pease Chief Executive Officer Simon Jones Chief Financial Officer Watkin Jones plc. HY25 Results | 2
Slide 3: Overview
Leatherhead, Surrey Overview Watkin Jones plc. HY25 Results
Slide 4: HY25 Overview – resilient operational performance
HY25 Overview – resilient operational performance HY25 Profit Strong Cash Position Positive Operational Progress • Gross profit margin 11.2% • Gross £87m / Net £73m • Delivery: 3 BTR schemes, 956 units completed YTD on time within budget • Operating Profit £0.4m • Total cash / facilities £123m • Fre
Slide 5: Driving a diversified and resilient strategy
Driving a diversified and resilient strategy Evolving Market – Key factors shaping the landscape • Economic volatility slowing investment liquidity & reducing visibility • Building Safety Legislation, Gateways and Planning – extending lead times & delivery programs • ESG enhanced focus and expectati
Slide 6: Market Review
Bath Junction, Bath Market Review Watkin Jones plc. HY25 Results
Slide 7: Investment Market Update – operational transactions leading gradual market recovery
Investment Market Update – operational transactions leading gradual market recovery Investment PBSA by transaction type PBSA – recovery delayed but medium outlook remains positive (as a % of total volume of deals) 1 PBSA investment volumes 1 • Improved transactional volumes but focus is on operation
Slide 8: Structural undersupply – market fundamentals continue to underpin performance & demand
Structural undersupply – market fundamentals continue to underpin performance & demand PBSA & University beds added by year 2 PBSA – continued student demand impacted by lack of new supply • Student numbers recovering with student visa applications up 13% year on year and UCAS applications up 1% yea
Slide 9: Occupational landscape – returning to a normalised leasing environment
Occupational landscape – returning to a normalised leasing environment PBSA UK PBSA rental growth to gradually return to trend 1 Fresh UK & Ireland – Lease up rates year on year 7 (annual % change) • Market normalising to a pre-COVID 80% 70% lease up cycle 60% 50% • Rental growth robust in context o
Slide 10: HY25 Financial Results
Cardiff, Central Quay HY25 Financial Results Watkin Jones plc. HY25 Results
Slide 11: HY25 Profit Outturn
HY25 Profit Outturn £M • Revenue of £129.2m HY25, delivered predominantly HY25 1 HY24 1 FY24 2 from previously sold developments on site, plus two Revenue 129.2 175.1 362.4 new development partnership deals as announced in COS (114.8) (156.7) (328.6) Asset Disposal 6.3 Dec 24 & Jan 25 Core Trading G
Slide 12: Net Cash Increase by c. £30m Year on Year
Net Cash increase by c. £30m Year on Year £M • Total Cash & Available Facilities of £123.0m (vs HY25 1 HY24 1 FY24 1 Net Cash From Operating Activities (6.4) 1.7 30.2 £103.7m HY24) Net Cash from Disposal of Subsidiary - - 24.8 • Year on year Net cash increase of £29.4m in Total Trading Net Cashflow
Slide 13: HY25 Balance Sheet
HY25 Balance Sheet £M HY25 HY24 FY24 ROU & Leased Assets 23.7 28.5 26.5 • Net Assets £132.6m, in line with FY24 Other Non-Current Assets 46.9 29.2 42.5 Total Non-Current Assets 70.7 57.7 69.0 • +£0.6m increase to HY24 Inventory & WIP 100.1 118.9 94.3 Other Current Assets 65.3 100.0 71.7 • 47p Net As
Slide 14: Outlook & Pipeline
Outlook & Pipeline Lewisham, London Watkin Jones plc. HY25 Results
Slide 15: Outlook
Outlook Whilst the external market backdrop remains challenging, we continue to focus on the factors within our control: delivery, cash management and cost control Investment market showing signs of improving sentiment, though pace will be linked to further reductions in gilt & interest rates and mo
Slide 16: £1.95bn high quality development pipeline
£1.95bn high quality development pipeline PBSA £0.85bn Pipeline BTR £0.75bn Pipeline Unsecured in Legals Site Unsecured in Legals / Forward Sold Forward Sold / Exclusivity Secured Exclusivity With Planning Site Site Secured Secured STP With Site Secured Planning STP WJ £1.95bn Pipeline: 11,550 Units
Slide 17: Divisional Update
The Waterways, Lower Parliament Street, Nottingham (Fresh managed) Divisional Update Watkin Jones plc. HY25 Results
Slide 18: Acquisition and Planning
Acquisition and Planning Future Pipeline Growth Market Factors • High quality Development Pipeline @ c £1.95bn • Government retains significant residential growth targets • Targeting core 'tier 1' and Russell Group cities • Planning environment showing early signs of improvement • Market dynamics cr
Slide 19: Divestment
Divestment • Continuing to progress on sales pipeline, innovating and flexing How do you think prime living yields will change over the next twelve months? 6 CGI of Gas Lane, Bristol structures to work with a variety of capital • Transaction progress slower but encouraging interest on No change 21%
Slide 20: Development Partnerships – a growing business and market case
Development Partnerships – a growing business and market case Viability challenges significantly restricting supply but also creating opportunity • 𝟐𝟐⁄ of current PBSA permissions yet to start on site (over 90,000 beds)1 𝟑𝟑 • BTR starts on site decreased by 14% YoY, a reduction of 8,100 units 8…
Slide 21: Refresh – a sizeable pipeline of opportunity
Refresh – a sizeable pipeline of opportunity Growing market opportunity Growth of older assets trading offers good growth opportunity for Refresh 7 • Repurposing of stock is emerging as a key capital target & mandate • 59% of PBSA transaction volume in 2025 is on stock older than 5 years offering re
Slide 22: Delivery – A key differentiator and enabler in development
Delivery – A key differentiator and enabler in development Schemes PC’d in 2025 Delivery Function offers an increasingly important USP to investors • Counterparty capability and blended risk profile • Cost control, value engineering, design evolution • Navigating new BSA and ESG regulations • Enable
Slide 23: Fresh – An important differentiator and part of our end-to-end proposition
Fresh – An important differentiator and part of our end-to-end proposition Progress in H1 Onboarded 5 new sites with 3 new clients providing an additional 1,892 UUM 19,513 26 Total units under Operational cities management 293 units at preferred bidder status to be mobilised in year Secured ma
Slide 24: Summary
Bath Junction, Bath Summary Watkin Jones plc. HY25 Results
Slide 25: Summary
Summary Resilient operational performance – Operating Profit £0.4m, Gross Cash £87m Continuing challenging economic market volatility slowing market recovery Structurally undersupplied markets with strong fundamentals and positive medium-term outlook Encouraging progress on revenue diversification s
Slide 26: Q&A
Randalls Way, Leatherhead Q&A Watkin Jones plc. HY25 Results
Slide 27: Appendix
Metal Works, Bedminster Appendix Watkin Jones plc. HY25 Results
Slide 28: ESG – strong progress made across People, Places, Planet
ESG – strong progress made across People, Places, Planet Highlights so far • Exceeding targets against our Future Foundations ambitions, in key areas such as building design efficiency & environmental impact. • Key carbon reduction achievements utilising HVO at one of our projects saving 5.29 tonnes
Slide 29: Bibliography
Bibliography 1. Knight Frank Research 2. StuRents 3. ONS 4. CBRE 5. RICS 6. Cushman & Wakefield 7. Watkin Jones management information 8. British Property Federation Watkin Jones plc. HY25 Results | 29
Slide 30: Disclaimer
Disclaimer This presentation has been prepared by or on behalf of Watkin Jones plc (“Watkin Jones”). The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) this presentation or by reading the presentat