Watkin Jones : Half Year Results for the six months ended 31 March 2026

About this update from Watkin Jones Plc

Watkin Jones plc (the 'Group') HY Results for the six months ended 31 March 2026 O perational progress & proactive strategy for continued diversification The Group announces its interim results for the half year ended 31 March 2026 ('HY26' or 'the period'). Adjusted Results (1) Statutory Results HY26 HY25 HY26 HY25 Revenue £100.2m £129.2m £100.2m £129.2m Gross profit £9.3m £14.4m £9.3m £14.4m Operating profit £0.4m £0.4m £0.4m £0.4m Profit / (loss) before tax £nil £0.2m (£0.9m) (£0.9m) Basic earnings / (loss) per share 0.01p 0.05p (0.35p) (0.27p) Adjusted net cash (2) £61.3m £73.4m (1) For HY26 Adjusted Profit before tax and Adjusted Earnings per share are calculated before the impact of an exceptional finance cost of £0.9 million (HY25: £1.1 million) for the unwinding of the discount rate on the Building Safety provision. (2) Adjusted net cash is stated after deducting interest bearing loans and borrowings, but before deducting IFRS 16 operating lease liabilities of £31.1 million as at 31 March 2026 (31 March 2025: £37.4 million). HY26 Highlights · Revenue of £100.2 million delivered primarily from in-build schemes: - Two new transactions during the period - a further PBSA scheme in Bristol and a scheme to deliver a hotel on a brownfield site in Wimbledon · Operating profit of £0.4 million: - Strong construction delivery, at margins in line with previous guidance, including the initial contribution from the sale of our Bristol scheme supported by our diversified routes to market. - Continued effective cost management despite inflationary pressures. · Further operational progress, despite the challenging backdrop: - Achieved planning on c.800 new living units in the period - Growth of 20% in Development Partnership and Refresh pipeline · Maintained focus on cash management: - Period end gross and adjusted net cash balances of £67.1 million and £61.3 million, respectively. · Further progress on building safety: - Successful achievement of Gateway 2 at four sites during the period, benefiting from early engagement with the Building Safety Regulator - Reduced net provision of £38.0 million Outlook · Whilst we monitor the evolving geopolitical and economic backdrop and the consequential impacts on both market confidence and liquidity, the Group continues to focus on the factors within our control: - successfully delivering our in-build projects - carefully managing our costs and cash, in particular with earlier procurement of selected sub-contract packages and forward buying of materials to mitigate inflationary pressures - accelerating the move into Development Partnerships and Refresh where we are refocusing and optimising utilisation of the Group's resources and capitalising on the business' end-to-end capabilities · Total secured pipeline of c.£1.3 billion, including c.£300 million of contractually secure forward sold revenue as at 31 March 2026, of which c.£90 million is for delivery in the second half of this year. · Several schemes are currently being marketed which have the potential to underpin delivery of an improved second half performance: - Mix of forward fund, Development Partnership and Refresh schemes - Number and type of transactions executed in H2, will have significant bearing on FY outturn · Potential for the business over medium term remains attractive, as we exploit our expertise in the residential sector and also diversify into adjacent sectors and new funding structures. Alex Pease, Chief Executive Officer of Watkin Jones, said : " We have achieved a resilient performance in the first half, underpinned by strong operational delivery and a proactive approach to cost and cash management. Our integrated platform continues to be a key differentiator, enabling us to identify incremental opportunities to deploy capabilities and diversify revenues across Development Partnerships, Refresh and adjacent sectors. While market conditions remain challenging and continue to impact the pace of recovery, the long-term fundamentals of our end markets remain attractive, and our flexibility, strong pipeline and capital-light model positions us well to navigate the near-term market conditions and create value for our stakeholders in the future." Analyst meeting There will be a pre-recorded audiocast of the HY26 Results presentation available to view on the Group's website ( www.watkinjonesplc.com ) from 7am (BST) today. At 9.30am (BST), there will be a live 30-minute Q&A webcast for sell-side analysts, hosted by Alex Pease (CEO) and Simon Jones (CFO). Those analysts wishing to join and receive dial in details should register their interest via MHP . For further information: Watkin Jones plc Alex Pease, Chief Executive Officer Tel: +44 (0) 20 3617 4453 Simon Jones, Chief Financial Officer www.watkinjonesplc.com Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker) Tel: +44 (0) 20 7418 8900 Mike Bell / Ed Allsopp www.peelhunt.com Singer Capital Markets (Joint Corporate Broker) Tel: +44 (0) 20 7496 3000 Sara Hale / Graham Hertrich / Amber Higgs www.singercm.com Media enquiries: Notes to Editors Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the build to rent, student accommodation and affordable housing sectors. The Group has strong relationships with institutional investors, and a reputation for successful, on-time-delivery of high-quality developments. Since 1999, Watkin Jones has delivered over 51,000 student beds across 150 sites, making it a key player and leader in the UK purpose-built student accommodation market, and is increasingly expanding its operations into the build to rent sector, where it has delivered 3,400 apartments across 19 schemes to date. In addition, Fresh, the Group's specialist accommodation management business, manages significantly more than 21,000 student beds and build to rent apartments on behalf of its institutional clients. Watkin Jones has also been responsible for over 80 residential developments, ranging from starter homes to executive housing and apartments. The Group's competitive advantage lies in its experienced management team and capital-light business model, which enables it to offer an end-to-end solution for investors, delivered entirely in-house with minimal reliance on third parties, across the entire life cycle of an asset. Watkin Jones was admitted to trading on AIM in March 2016 with the ticker WJG.L. For additional information please visit www.watkinjonesplc.com . Review of Performance Results for the six months to 31 March 2026 Revenues for the period were £100.2 million (HY25: £129.2 million). Operationally the Group's businesses have continued to perform well, with our developments on site progressing in line with expectations. The decrease in revenues reflects the sustained lower level of transactional activity. Development Partnerships contributed £43.8m (HY25: £32.3m) of revenue in the period. Gross profit was £9.3 million (HY25: £14.4 million), with gross margin at 9.3% slightly behind the prior year (HY25: 11.1%) due to change in mix of schemes on site and transaction structures. Operating profit for the period on both a statutory and adjusted basis was £0.4 million (HY25: £0.4 million), with the sale of our Bristol development, executed as a disposal of a subsidiary rather than a traditional land sale, offsetting the reduction in revenues. Net finance costs for the period were £1.3 million (HY25: £1.3 million). Finance costs include £0.6 million (HY25: £0.8 million) in respect of the interest on leases, and a discount rate unwind of £0.9 million (HY25: £1.1 million). Loss before tax for the period was £0.9 million (HY25: loss before tax of £0.9 million). Our adjusted result before tax for the period, which excludes the exceptional finance costs of £0.9 million relating to the discount rate unwind, was at breakeven (HY25: £0.2 million). Adjusted basic earnings per share for the period were 0.01 pence, compared to 0.05 pence for HY25. Segmental review Build to Rent ('BTR') Revenues from BTR decreased by 42.4% in the period to £52.0 million (HY25: £90.3 million), reflecting the completion of three schemes in FY25. Revenues were derived from the build-out of our forward sold developments, which are progressing well and on track for their respective completions. Gross profit for the period was £6.5 million (HY25: £7.4 million), with the gross margin improved from the prior year to 12.5% (HY25: 8.2%), reflecting the margin mix of live schemes. Student accommodation ('PBSA') Revenues from PBSA were higher than last year at £33.2 million (HY25: £25.6 million) reflecting our Glasgow and Bristol developments, recently sold into our joint venture with Maslow Capital, having commenced on site, supported by further strong build progress from our other live schemes. PBSA gross profit for the period was £0.9 million (HY25: £3.9 million) with operating margin for the period at 17.4% (HY25: 15.2%) including the sale of our Bristol development. Refresh Refresh, our asset refurbishment division, continues to build its reputation in the market, with an increased total pipeline of c.£135 million. Accommodation management (Fresh) Fresh achieved revenues of £4.6 million (HY25: £4.2 million), with units under management increasing to over 21,000. Eight new schemes were being mobilised at the period end, which will add a further c.1,700 beds in the second half. Gross profit increased to £2.6 million (HY25: £2.3 million), with the modest improvement in margin of 56.5% (HY25: 55.1%) reflecting strong cost control in light of inflationary increases across operating expenses. Academic year 2026/27 leasing is tracking in line with prior year. However, outturn occupational performance across PBSA markets remains uncertain driven by reductions in international student recruitment and affordability. Our expectation is that demand will remain focussed on higher ranked higher education institutions, and locations which align with these institutions will outperform. Single family homes The affordable-led Single family homes business continued to make good progress at our development partnership site in St Helens. Revenue increased to £7.9 million benefitting from a full year on site at this scheme (HY25: £4.8 million). The gross profit achieved by the division increased as a result of higher revenues to £0.5 million (HY25: £0.3 million), at consistent margins of 6.3% (HY25: 6.3%). Balance sheet and liquidity Our financial position and liquidity remain strong. We had a gross cash balance at 31 March 2026 of £67.1 million (31 March 2025: £86.8 million), whilst net cash stood at £61.3 million (31 March 2025: £73.4 million), before deducting IFRS 16 lease liabilities. The Group had undrawn headroom of £43.9 million on its revolving credit facility ('RCF') with HSBC at 31 March 2026, giving total cash and available facilities of £111.0 million, with a further optional £10.0 million accordion facility. Our strong liquidity position is the result of effective working capital management and collection of retentions and bullet payments on completed schemes, offset by the impact of our normal annual cash profile, which sees a higher utilisation of cash in the first half of the year. Our inventory and work in progress balance increased by a net £4.8 million, to £91.7 million since 30 September 2025 as a result of enabling works we have carried out on sites we have in the market. Contract assets and receivables at 31 March 2026 stood at £27.8 million and £28.9 million and had decreased £1.3 million and £12.1 million respectively from the position at 30 September 2025. The contract assets relate primarily to the final payments to be received on completion of the forward sold developments in build, increasing as developments progress. Contract and trade liabilities amounted to £80.9 million at 31 March 2026 and had decreased by £6.3 million since the FY25 year-end position. Building Safety We continue to focus on the delivery of our building safety rectification obligations and have completed works on two buildings in the period with cash spend in line with expectations. As previously reported, there remains significant uncertainty in this area across the sector and, as for many other participants in our industry, assets in scope and the scope and cost of works continue to evolve. We will continue to monitor this as discussions with building owners and building investigations continue. We have utilised £9.4 million net of contributions received from our Building Safety provision in HY26, with the discount on the provision also being unwound by £0.9 million, resulting in a net provision at 31 March 2026 of £38.0 million. ESG Following the successful culmination of our Future Foundations Strategy in FY24/25, we launched a new set of objectives this year. This renewed strategy introduces a sharper focus on areas such as Social Value and uplifts some of our previous targets around Considerate Constructor and BREEAM. All core sites remain on target to deliver our uplifted targets in relation to BREEAM (Excellent) and Considerate Constructors (Excellent), and our hybrid plant strategy continues to deliver significant carbon savings. Our Fresh colleagues have recently delivered a record NPS of +38 - significantly in advance of new target of +30 - also receiving platinum global student living index accreditation. Our work with Mind continues, with fund raising efforts from our recent Supplier Conference demonstrating the alignment and support of our wider supply chain for our ESG objectives. Dividend The Board is continuing to prioritise the maintenance of financial flexibility during this period of market disruption and consequently is not declaring an interim dividend; the Board will keep this approach under review. Outlook We continue to focus on the factors within our control such as managing the delivery of our in-build schemes, controlling costs and cash and broadening our revenue base whilst mindful of the uncertain geo-political backdrop and impact on market sentiment. During the second half, these will continue to be our priorities together with increased focus on forward procurement of key sub-contract packages and forward buying of materials to help mitigate the expected inflationary pressures as well as focusing on the successful divestment of the schemes that we have in the market. Whilst the market for these assets remains challenging, our schemes are attracting interest with a number of further forward sales from this pipeline required in H2 26 to enable delivery of full year performance in line with current market expectations. Alex Pease Chief Executive Officer 27 May 2026 Consolidated Statement of Comprehensive Income for the six month period ended 31 March 2026 (unaudited) 6 months to 31 March 2026 6 months to 31 March 2025 Before Before exceptional Exceptional exceptional Exceptional items items Total items items Total Notes £'000 £'000 £'000 £'000 £'000 £'000 Continuing operations Revenue 5 100,171 - 100,171 129,176 - 129,176 Cost of sales (90,835) - (90,835) (114,765) - (114,765) Gross profit 9,336 - 9,336 14,411 - 14,411 Administrative expenses 6 (13,822) - (13,822) (13,989) - (13,989) Profit on disposal of subsidiary 4,886 - 4,886 - - - Operating profit 400 - 400 422 - 422 Finance income 598 - 598 955 - 955 Finance costs (985) (901) (1,886) (1,205) (1,090) (2,295) Profit/(loss) before tax 13 (901) (888) 172 (1,090) (918) Income tax (expense)/credit 8 (3) 3 - (43) 272 229 Profit/(loss) for the year attributable to ordinary equity holders of the parent 10 (898) (888) 129 (818) (689) Other comprehensive income That will not be reclassified to profit or loss in subsequent periods: Net gain/(loss) on equity instruments designated at fair value through other comprehensive income, net of tax 15 - 15 9 - 9 Total comprehensive income/(loss) for the year attributable to ordinary equity holders of the parent 25 (898) (873) 138 (818) (680) Pence Pence Pence Pence Pence Pence Earnings per share for the year attributable to ordinary equity holders of the parent Basic earnings/(loss) per share 9 0.006 (0.352) (0.346) 0.050 (0.318) (0.268) Diluted earnings/(loss) per share 9 0.006 (0.352) (0.346) 0.050 (0.318) (0.268) Consolidated Statement of Comprehensive Income for the year ended 30 September 2025 Year ended 30 September 2025 Before exceptional Exceptional items items Total Notes £'000 £'000 £'000 Continuing operations Revenue 5 279,837 - 279,837 Cost of sales (253,345) (7,110) (260,455) Gross profit 26,492 (7,110) 19,382 Administrative expenses 6 (28,306) (5,000) (33,306) Profit on disposal of subsidiary 8,163 - 8,163 Operating profit/(loss) 6,349 (12,110) (5,761) Share of loss in joint ventures - - - Finance income 1,359 - 1,359 Finance costs (2,097) (2,181) (4,278) Profit/(loss) before tax 5,611 (14,291) (8,680) Income tax credit 274 - 274 Profit/(loss) for the year attributable to ordinary equity holders of the parent 5,885 (14,291) (8,406) Other comprehensive income That will not be reclassified to profit or loss in subsequent periods: Net gain on equity instruments designated at fair value through other comprehensive income, net of tax 27 - 27 Total comprehensive income/(loss) for the year attributable to ordinary equity holders of the parent 5,912 (14,291) (8,379) Pence Pence Pence Earnings per share for the year attributable to ordinary equity holders of the parent Basic earnings/(loss) per share 2.293 (5.568) (3.275) Diluted earnings/(loss) per share 2.288 (5.563) (3.275) Consolidated Statement of Financial Position as at 31 March 2025 (unaudited) 31 March 2026 31 March 2025 30 September 2025 Notes £'000 £'000 £'000 Non-current assets Intangible assets 10,212 10,767 10,487 Investment property (leased) 13,463 18,606 15,681 Other right of use assets 4,851 5,136 4,585 Property, plant and equipment 809 1,317 828 Investment in joint ventures 18,754 7,884 14,515 Reimbursement assets 7 7,628 10,774 7,710 Deferred tax asset 15,090 15,319 15,090 Other financial assets 679 875 679 71,486 70,678 69,575 Current assets Inventory and work in progress 91,691 100,062 86,851 Contract assets 27,796 34,323 29,123 Trade and other receivables 28,858 27,350 41,015 Reimbursement assets 7 2,537 1,099 2,565 Current tax receivables 285 2,523 2,911 Cash and cash equivalents 12 67,064 86,827 80,398 218,231 252,184 242,863 Total assets 289,717 322,862 312,438 Current liabilities Trade and other payables (73,579) (80,547) (83,169) Contract liabilities (7,353) (1,900) (4,005) Lease liabilities (6,801) (7,733) (8,223) Provisions 7 (15,402) (6,581) (22,286) (103,135) (96,761) (117,683) Non-current liabilities Interest-bearing loans and borrowings (5,757) (13,443) (9,933) Lease liabilities (23,406) (29,689) (25,408) Provisions 7 (32,737) (50,399) (34,420) (61,900) (93,531) (69,761) Total Liabilities (165,035) (190,292) (187,444) Net assets 124,682 132,570 124,994 Equity Share capital 2,568 2,567 2,567 Share premium 84,612 84,612 84,612 Merger reserve (75,383) (75,383) (75,383) Fair value reserve of financial assets at FVOCI 204 171 189 Share-based payment reserve 2,368 2,440 1,808 Retained earnings 110,313 118,163 111,201 Total Equity 124,682 132,570 124,994 Consolidated Statement of Changes in Equity for the six month period ended 31 March 2026 (unaudited) Share Capital £'000 Share Premium £'000 Merger Reserve £'000 Fair value of financial assets at FVOCI £'000 Share-based payment reserve £000 Retained earnings £'000 Total £'000 Balance at 30 September 2024 2,567 84,612 (75,383) 162 1,780 118,852 132,590 Profit for the period - - - - - (689) (689) Share-based payments - - - - 660 - 660 Other comprehensive income - - - 9 - - 9 Balance at 31 March 2025 2,567 84,612 (75,383) 171 2,440 118,163 132,570 Profit for the period - - - - - (7,717) (7,717) Share-based payments - - - - (18) - (18) Other comprehensive income - - - 18 - - 18 Deferred tax credited directly to equity - - - - - 141 141 Recycled reserve for fully vested share-based payment schemes - - - - (614) 614 - Balance at 30 September 2025 2,567 84,612 (75,383) 189 1,808 111,201 124,994 Loss for the period - - - - - (888) (888) Share-based payments - - - - 560 - 560 Issue of shares 1 - - - - - 1 Other comprehensive income - - - 15 - - 15 Balance at 31 March 2026 2,568 84,612 (75,383) 204 2,368 110,313 124,682 Consolidated Statement of Cash Flows for the six month period ended 31 March 2026 (unaudited) 6 months to 31 March 2026 6 months to 31 March 2025 12 months to 30 September 2025 Notes £'000 £'000 £'000 Cash flows from operating activities Cash outflow from operations 11 (8,685) (5,868) (13,101) Interest received 598 644 1,359 Interest paid (889) (1,130) (2,314) Tax received/(paid) 2,778 - (61) Net cash outflow from operating activities (6,198) (6,354) (14,117) Cash flows from investing activities Acquisition of property, plant and equipment (122) (129) (129) Proceeds on disposal of property, plant and equipment - - - Proceeds on disposal of a subsidiary 5,520 - 9,122 Repayment of related party loan following disposal of subsidiary 620 - 6,558 Investment in joint venture interests (4,565) - (6,750) Net cash (outflow)/inflow from investing activities 1,453 (129) 8,801 Cash flows from financing activities Payment of principal portion of lease liabilities (4,317) (3,652) (7,807) Drawdown of RCF - - - Repayment of bank loans and RCF (4,272) - (3,441) Net cash outflow from financing activities (8,589) (3,652) (11,248) Net (decrease)/increase in cash (13,334) (10,135) (16,564) Cash and cash equivalents at beginning of the period 80,398 96,962 96,962 Cash and cash equivalents at end of the period 12 67,064 86,827 80,398 Notes to the consolidated financial information 1. General information Watkin Jones plc (the 'Company') is a limited company incorporated in the United Kingdom under the Companies Act 2006 (Registration number 09791105). The Company is domiciled in the United Kingdom and its registered address is 12 Soho Square, London, W1D 3QF. The principal activities of the Company and its subsidiaries (collectively the 'Group') are the development and management of multi-occupancy residential rental properties. The consolidated interim financial statements of the Group for the six-month period ended 31 March 2026 comprises the Company and its subsidiaries. The basis of preparation of the consolidated interim financial statements is set out in note 2 below. The financial information for the six months ended 31 March 2026 is unaudited. It does not constitute statutory financial statements within the meaning of Section 434 of the Companies Act 2006. The consolidated interim financial statements should be read in conjunction with the financial information for the year ended 30 September 25 which has been prepared in accordance with international accounting standard in conformity with the requirements of the Companies Act 2006. The report of the auditors on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) of the Companies Act 2006. This report was approved by the directors on 26 May 2026. 2. Basis of preparation This set of condensed consolidated interim financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the UK. The interim financial statements have been prepared based on the UK adopted International Financial Reporting Standards "IFRS" that are expected to exist at the date on which the Group prepares its financial statements for the year ended 30 September 2026. To the extent that IFRS at 30 September 2026 do not reflect the assumptions made in preparing the interim financial statements, those financial statements may be subject to change. The interim financial statements have been prepared on a going concern basis and under the historical cost convention. The interim financial statements have been presented in pounds sterling and all values are rounded to the nearest thousand (£'000), except when otherwise indicated. The preparation of financial information in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual events may ultimately differ from those estimates. The interim financial statements do not include all financial risk information and disclosures required in the annual financial statements and they should be read in conjunction with the financial information that is presented in the Company's audited financial statements for the year ended 30 September 2025. There has been no significant change in any risk management policies since the date of the last audited financial statements. Going concern At 31 March 2026, the Group had a robust liquidity position, with cash and available headroom in its banking facilities totalling £111.0 million made up of cash balances of £67.1 million and RCF headroom of £43.9 million. The RCF can be used for the acquisition of land and associated development works, and allows for a further £10.0 million accordion option within the facility. Good liquidity has been maintained through the period, providing the Group with a good level of cash and available banking facilities for the year ahead. Group forecasts have been prepared that have considered the Group's current financial position and market circumstances. We have prepared a base case cash flow for the period to 30 June 2027 which is aligned to the Group's business plan and trading assumptions for that period. Our currently secured cash flow, derived from our forward sold developments and other contracted income, net of overheads and tax, results in utilisation over the forecast period albeit our cash position remains resilient. In addition to the secured cash flow, the base case forecast assumes a number of new sales which, if achieved, will improve that liquidity position. In addition to the base case forecast, we have considered the possibility of prolonged disruption to the forward sale market given the market turbulence seen in the UK over recent years. This is our most significant risk as it would greatly limit our ability to achieve any further disposals. We have run a reasonable downside scenario to assess the possible impact of the above risks, such that forward sales and new site acquisitions are delayed by up to six months. The cash forecast prepared under this scenario illustrates that adequate liquidity is maintained through the forecast period and the financial covenants under the RCF would still be met. The minimum total cash and available facilities balance under this scenario is £70.4 million (excluding the £10.0 million accordion facility). We consider the likelihood of events occurring which would exhaust the total cash and available facilities remaining to be remote. However, should such events occur, management would be able to implement reductions in discretionary expenditure and consider the sale of the Group's land sites to ensure that the Group's liquidity was maintained. Based on the thorough review and robust downside forecasting undertaken, and having not identified any material uncertainties that may cast any significant doubt, the Board is satisfied that the Group will be able to continue to trade for the period to 30 June 2027 and has therefore adopted the going concern basis in preparing the financial statements. Building Safety Provision The Group holds a provision for building safety remedial works, for which the legislative and construction background was disclosed in the Group's audited financial statements for the year ended 30 September 2025. This is a highly complex area with significant estimates in respect of the cost of remedial works, the quantum of any legal expenditure associated with the defence of the Group's position in this regard, and the extent of those properties within the scope of the applicable government guidance and legislation, which continues to evolve. All our buildings were signed off by approved inspectors as compliant with the relevant Building Regulations at the time of completion. The amount provided for these works has been estimated by reference to recent industry experience and external quotes for similar work identified. The investigation of the works required at many of the buildings is at an early stage and, therefore, it is possible that these estimates may change over time or if government legislation and regulation further evolves. As a number of other housebuilders and developers have done over the last 12 months, we have included an additional amount of contingency within our provision to reflect further buildings being identified as requiring remediation, or for unforeseen remediation costs beyond management's current knowledge. We have also implemented a consistent contingency policy across the properties where work is yet to start. We expect this cost to be incurred within the next four financial years, and the provision has been discounted to its present value accordingly. The timing of this expenditure will be dependent on the timely engagement by building owners, revisions to programme under the new BSA Gateways, and the availability of appropriately qualified subcontractors. We continue to make progress negotiating contributions from clients to mitigate our liability in relation to these remedial works. At the balance sheet date, we have recognised reimbursement assets of £10.2 million (30 September 2025: £10.3 million). At the period end the Group remained in discussions with a number of property owners whereby the legal responsibility or confirmation of fire safety remediation requirements remains uncertain and which, therefore, form part of the Group's contingent liabilities. As referred to above, the clarification of whether these liabilities crystallise is dependent on multiple factors which are expected to be concluded in the next 12 to 24 months. At the same time, the Group continues to explore opportunities to recover the costs of remediation through the Group's insurance providers and supply chain. However, no benefit has been assumed within the provision unless contractual terms have been established. We will continue to keep abreast of any changes to legislation and guidance, recognising that the approach to building safety continues to evolve. Of the outstanding net provision, £2.2 million is fixed as a result of legal settlements agreed with building owners. However, for the remaining liabilities, should the costs associated with these remedial works increase by 10%, the provision required would increase by £3.4 million. Should the discount rate applied to the calculation reduce by 1%, the provision required would increase by £0.5 million. Further details of the provision are set out in note 7. Remedial works required on any property identified will range in cost. Whilst liabilities could be higher than recent experience, in the last two years, following detailed diligence with respect to scope of works, the range of liabilities has been between a net cost of £nil and c.£2 million, and the average net cost has been £0.9 million for properties requiring remediation. 3. Accounting policies The accounting policies used in preparing these interim financial statements are the same as those set out and used in preparing the Company's audited financial statements for the year ended 30 September 2025. 4. Segmental reporting The Group has identified six segments for which it reports under IFRS 8 'Operating segments', as follows: A Student accommodation - the development of purpose-built student accommodation; B Build to rent - the development of build to rent accommodation; C Single family homes (formerly "Affordable homes") - the development of affordable residential housing for sale; D Refresh - the refurbishment, redevelopment and repurposing of existing accommodation; E Accommodation management - the management of student accommodation and build to rent property; and F Corporate - revenue from the development of commercial property forming part of mixed-use schemes and other revenue and costs not solely attributable to any one other operating segment. Performance is measured by the Board based on gross profit as reported in the management accounts. Apart from inventory and work in progress, no other assets or liabilities are analysed into the operating segments. 6 months to 31 March 2026 (unaudited) Student Accommodation Build to rent Single family homes Refresh Accommodation management Corporate Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Segmental revenue 33,249 52,075 7,879 1,911 4,582 475 100,171 Segmental gross profit 888 6,477 484 558 2,631 (1,312) 9,726 Impairment of inventory for aborted pipeline assets - - - - - (390) (390) Gross profit/(loss) 888 6,477 484 558 2,631 (1,702) 9,336 Profit on disposal of subsidiary 4,886 - - - - - 4,886 Administration expenses - - - - (2,621) (11,201) (13,822) Finance income - - - - - 598 598 Finance costs - - - - - (985) (985) Exceptional finance costs - - - - - (901) (901) Profit/(loss) before tax 5,774 6,477 484 558 10 (14,191) (888) Taxation - - - - - - - Profit/(loss) for the period 5,774 6,477 484 558 10 (14,191) (888) Inventory and WIP 42,136 25,209 21,202 14 - 3,130 91,691 Disposal of subsidiary During the period ended 31 March 2026 the Group sold its former subsidiary Malago Road Bristol Limited to a related party, the joint venture controlled by The Ard Malago Holdings Limited. On disposal the subsidiary had net assets of £nil, with a profit on disposal recognised of £4,886,000. As part of the transaction, a related party loan of £620,000 was settled between the Group and Malago Road Bristol Limited. The subsidiary held no cash or cash equivalents at the point of disposal. 6 months to 31 March 2025 (unaudited) Student Accommodation Build to rent Single family homes Refresh Accommodation management Corporate Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Segmental revenue 25,605 90,278 4,758 4,343 4,175 17 129,176 Segmental gross profit 3,903 7,351 264 615 2,301 253 14,687 Impairment of inventory for aborted pipeline assets - - - - - (276) (276) Gross profit 3,903 7,351 264 615 2,301 (23) 14,411 Administration expenses - - - - (2,391) (11,598) (13,989) Finance income - - - - - 955 955 Finance costs - - - - - (1,205) (1,205) Exceptional finance costs - - - - - (1,090) (1,090) Profit/(loss) before tax 3,903 7,351 264 615 (90) (12,961) (918) Taxation - - - - - 229 229 Profit/(loss) for the period 3,903 7,351 264 615 (90) (12,732) (689) Inventory and WIP 44,014 31,331 22,831 207 - 1,679 100,062 Year ended 30 September 2025 Student Accommodation Build to rent Single family homes Refresh Accommodation management Corporate Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Segmental revenue 67,704 179,967 13,689 9,995 8,371 111 279,837 Segmental gross profit 5,366 16,031 (849) 1,487 4,634 99 26,768 Impairment of inventory for aborted pipeline assets - - - - - (276) (276) Exceptional impairment of land assets - - - - - (6,100) (6,100) Exceptional impairment of right-of-use assets (1,010) - - - - - (1,010) Gross profit 4,356 16,031 (849) 1,487 4,634 (6,277) 19,382 Administration expenses - - - - (4,834) (23,472) (28,306) Profit on disposal of subsidiary 8,163 - - - - - 8,163 Exceptional administrative expenses - - - - - (5,000) (5,000) Operating profit 12,519 16,031 (849) 1,487 (200) (34,749) (5,761) Share of operating loss in joint ventures - - - - - - - Finance income - - - - - 1,359 1,359 Finance costs - - - - - (2,097) (2,097) Exceptional finance costs - - - - - (2,181) (2,181) Profit/(loss) before tax 12,519 16,031 (849) 1,487 (200) (37,668) (8,680) Taxation - - - - - 274 274 Profit/(loss) for the period 12,519 16,031 (849) 1,487 (200) (37,394) (8,406) Inventory and WIP 41,023 23,061 20,861 210 - 1,696 86,851 5. Disaggregated revenue information 6 months to 31 March 2026 (unaudited) Student Accommodation Build to rent Single family homes Refresh Accommodation management Corporate Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Type of goods or service Construction contracts or development agreements 28,510 52,075 7,519 1,911 - - 90,015 Sale of land - - - - - - - Sale of completed property - - 360 - - 440 800 Rental income 4,739 - - - - 35 4,774 Accommodation management - - - - 4,582 - 4,582 Total revenue from contracts with customers 33,249 52,075 7,879 1,911 4,582 475 100,171 Timing of revenue recognition Goods transferred at a point in time - - 360 - - 440 800 Services transferred over time 33,249 52,075 7,519 1,911 4,582 35 99,371 Total revenue from contracts with customers 33,249 52,075 7,879 1,911 4,582 475 100,171 6 months to 31 March 2025 (unaudited) Student Accommodation Build to rent Single family homes Refresh Accommodation management Corporate Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Type of goods or service Construction contracts or development agreements 19,955 90,278 3,748 4,343 - - 118,324 Sale of land - - - - - - - Sale of completed property - - 1,000 - - - 1,000 Rental income 5,650 - 10 - - 17 5,677 Accommodation management - - - - 4,175 - 4,175 Total revenue from contracts with customers 25,605 90,278 4,758 4,343 4,175 17 129,176 Timing of revenue recognition Goods transferred at a point in time - - 1,000 - - - 1,000 Services transferred over time 25,605 90,278 3,758 4,343 4,175 17 128,176 Total revenue from contracts with customers 25,605 90,278 4,758 4,343 4,175 17 129,176 Year ended 30 September 2025 Student Accommodation Build to rent Single family homes Refresh Accommodation management Corporate Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Type of goods or service Construction contracts or development agreements 57,357 179,967 11,983 9,995 - - 259,302 Sale of land - - - - - 64 64 Sale of completed property - - 1,695 - - - 1,695 Rental income 10,347 - 11 - - 47 10,405 Accommodation management - - - - 8,371 - 8,371 Total revenue from contracts with customers 67,704 179,967 13,689 9,995 8,371 111 279,837 Timing of revenue recognition Goods transferred at a point in time - - 1,695 - - 64 1,759 Services transferred over time 67,704 179,967 11,994 9,995 8,371 47 278,078 Total revenue from contracts with customers 67,794 179,967 13,689 9,995 8,371 111 279,837 6. Exceptional costs 6 months to 31 March 2026 6 months to 31 March 2025 12 months to 30 September 2025 £'000 £'000 £'000 Recognised in cost of sales Impairment of land assets - - 6,100 Impairment of right-of-use asset - - 1,010 Total exceptional items recognised in cost of sales - - 7,110 Recognised in administrative expenses Building Safety provision - - 5,000 Total exceptional items recognised in administrative expenses - - 5,000 Recognised in finance costs Unwind of discount rate on Building Safety provision 901 1,090 2,181 Total exceptional items recognised in finance costs 901 1,090 2,181 Total exceptional costs 901 1,090 9,518 No further exceptional administrative expenses related to the Building Safety provision have been incurred in the period ended 31 March 2026. The provision made in the prior year has been unwound to its present value, resulting in finance costs of £901,000 in this period. 7. Provisions Building Safety provision Reimbursement Provision asset Total £'000 £'000 £'000 At 1 October 2025 56,707 (10,275) 46,432 Arising during year - - - (Utilised)/received (9,669) 310 (9,359) Unwind of discount rate 1,101 (200) 901 At 31 March 2026 48,139 (10,165) 37,974 The provision is classified as follows: Reimbursement Provision asset Total At 31 March 2026 £'000 £'000 £'000 Current 15,402 (2,537) 12,865 Non-current 32,737 (7,628) 25,109 Total 48,139 (10,165) 37,974 Reimbursement Provision asset Total At 31 March 2025 £'000 £'000 £'000 Current 6,581 (1,099) 5,482 Non-current 50,399 (10,774) 39,625 Total 56,980 (11,873) 45,107 A net provision of £46,432,000 was held at 30 September 2025 for the Group's anticipated contribution towards the cost of building safety remedial works. No new net provision has been recognised during the period ended 31 March 2026. The net provision at 31 March 2026 amounts to £37,974,000, of which £12,865,000 is expected to be incurred in the next twelve months to 31 March 2027, with £25,109,000 expected to be incurred between 1 April 2027 and 30 September 2029. The provision has been discounted to its present value accordingly, at a risk-free rate of 4.42% based on UK five-year gilt yields (2025: 4.15%). The judgements and estimates surrounding this provision and corresponding reimbursement assets are set out in note 2. 8. Income taxes The tax expense for the period has been calculated by applying the expected effective tax rate for the financial year ending 30 September 2026 of 25.00% to the profit for the period. 9. Earnings per share Basic earnings per share ("EPS") amounts are calculated by dividing the net profit or loss for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares in issue during the year. The following table reflects the income and share data used in the basic EPS computations: 6 months to 31 March 2026 6 months to 31 March 2025 12 months to 30 September 2025 £'000 £'000 £'000 (Loss)/profit for the period attributable to ordinary equity holders of the parent (888) (689) (8,406) Add back exceptional items for the period 901 1,090 14,291 Less corporation tax benefit from exceptional items for the period (3) (272) - Adjusted profit for the period attributable to ordinary equity holders of the parent 10 129 5,885 Number of shares Number of shares Number of shares Weighted average number of ordinary shares for basic earnings per share 256,682,816 256,653,097 256,653,097 Adjustments for the effects of dilutive potential ordinary shares 1,320,671 395,495 574,738 Weighted average number for diluted earnings per share 258,003,487 257,048,592 257,227,835 Pence Pence Pence Basic (loss)/earnings per share Basic (loss)/profit for the period attributable to ordinary equity holders of the parent (0.346) (0.268) (3.275) Adjusted basic earnings/(loss) per share (excluding exceptional items after tax) Adjusted profit/(loss) for the period attributable to ordinary equity holders of the parent 0.006 0.050 2.293 Diluted (loss)/earnings per share Basic (loss)/profit for the period attributable to diluted equity holders of the parent (0.346) (0.268) (3.275) Adjusted diluted earnings/(loss) per share (excluding exceptional items after tax) Adjusted profit/(loss) for the period attributable to diluted equity holders of the parent 0.006 0.050 2.288 10. Dividends No interim dividend is proposed for the period ended 31 March 2026 (31 March 2025: nil pence per ordinary share). As such, no liability (31 March 2025: liability of £nil) has been recognised at that date. At 31 March 2026, the Company had distributable reserves available of £42,257,000 (31 March 2025: £41,643,000). 11. Reconciliation of profit before tax to net cash flow from operating activities 6 months to 31 March 2026 6 months to 31 March 2025 12 months to 30 September 2025 £'000 £'000 £'000 (Loss)/profit before tax (888) (918) (8,680) Depreciation of leased investment properties and right-of-use assets 2,857 2,962 5,892 Impairment of right-of-use assets - - 1,010 Depreciation of plant and equipment 142 212 691 Amortisation of intangible assets 276 280 559 Profit of disposal of subsidiary (4,886) - (8,163) Loss on sale of plant and equipment - - 11 Finance income (598) (955) (1,359) Finance costs 1,886 2,295 4,278 (Increase)/decrease in inventory and work in progress (4,840) (5,797) 856 Decrease in contract assets 1,327 2,214 7,415 Decrease/(increase) in trade and other receivables 11,537 3,841 (9,823) Increase/(decrease) in contract liabilities 3,348 (1,351) 753 Decrease/(increase) in reimbursement assets 310 (4,083) (2,312) Decrease in trade and other payables (10,047) (5,312) (3,418) (Decrease)/increase in provisions (9,669) 84 (1,453) Increase in share-based payment reserve 560 660 642 Net cash (outflow)/inflow from operating activities (8,685) (5,868) (13,101) 12. Analysis of net cash/(debt) 31 March 2026 31 March 2025 30 September 2025 £'000 £'000 £'000 Cash at bank and in hand 67,064 86,827 80,398 Bank loans (5,757) (13,443) (9,933) Net cash before deducting lease liabilities 61,307 73,384 70,465 Lease liabilities (30,207) (37,422) (33,631) Net cash/(debt) 31,100 35,962 36,834 - Ends -

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