Student Accommodation builder says it had a successful first six months of the year
Companies: Watkin Jones Plc
A pre-close trading update from Watkin Jones sent shares up 3% early on Monday after the student accommodation developer told investors it had had a successful first six months of the year with trading in-line with expectations.
The Company says the market for purpose-built student accommodation in the UK is growing, with demand for its product remaining strong.
The Group says it sold 5 student accommodation developments during the period, in Bournemouth, Ipswich, Belfast, Cardiff, and London, or around 2350 beds, with six more developments totaling 1700 beds under offer.
The Group also made progress with its move into the PRS (private rented sector), completing its first scheme of 322 units in Leeds during the period.
Mark Watkin Jones, CEO of the firm, said he was pleased with the Group's performance which was reinforcing the attractiveness of its end-to-end business model to funds and institutional investors.
"Our entry into PRS has been successful with the completion of our first scheme in Leeds and going forward we plan to grow our PRS business sustainably. Our development pipeline provides excellent visibility of earnings and cashflow and we are optimistic for the continued growth of Watkin Jones."
According to Digital Look's consensus data on Watkin Jones, the firm is expected to hit revenues of £262m and pre-tax profit of £42.67m for the full-year. The firm currently trades on a P/E of 6.4x.