Watkin Jones delivered “a resilient operational performance” amid difficult market conditions, slashing its pre-tax loss despite a dip in revenue.
Revenue for the year ended 30 September 2024 was £362.4 million, down 12.3 per cent from £413.2 million in 2023.
The firm said that this was delivered predominantly from previously sold developments on site, supported by two further developments sold in the year and a successful first year of its refresh offering.
The residential developer generated a pre-tax loss of £300,000 million, slashing losses by 99.3 per cent from 2023 which saw a loss of £42.5 million.
Watkin Jones secured an operating profit of £3.6 million, edging the firm back into the black from £38 million in loss in 2023, however, this was impacted by £7 million in remedial costs lead to its pre-tax loss.
The firm said the investment market is gradually showing signs of recovery, and the medium term outlook remains strong, with around £300 million of contractually secure revenue as at 30 September and a £2 billion pipeline.
It owed its positive outlook to a pipeline of successes, including planning approval for 2,600 PBSA beds, across four schemes; and two further PBSA development sites, subject to planning.
In November 2023, Watkin Jones appointed its new CEO Alex Pease, taking on the job full time after serving as interim chief executive officer.
Pease said: “The Group produced a resilient operational performance during FY24, in what remains a difficult investment market.
“The slow pace of interest rate cuts and timing of the general election meant that, whilst investor sentiment remained positive, transactional activity has not improved as quickly as expected.
“We responded by focusing on the factors within our control: successfully delivering our in-build projects and carefully managing our costs.
“We have also continued to broaden our revenue base, opening up new sources of income through our Refresh and development partnership initiatives.
“While the investment market has continued to be challenging, the sectors in which we operate remain attractive.
“PBSA is still undersupplied and BTR offers a key solution to the UK’s housing shortage, helping to accelerate the delivery of new homes and fostering communities.
“As a market-leading developer with a strong track record, Watkin Jones is an ideal conduit for institutional capital.”
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