Investing.com -- Shares of Watkin Jones soared 20% following the company's announcement of a robust forward-sold revenue and a promising pipeline.
The property development firm reported approximately £300 million of contractually secure forward-sold revenue as of September 30, 2024, with a three-year delivery profile, including £232 million in Build-to-Rent (BTR) and around £60 million in student accommodations.
Additionally, Watkin Jones revealed a total pipeline nearing £2 billion.
The company's fiscal year 2025 (FY25) guidance has been updated from a previous statement, suggesting that while achieving year-on-year progress is possible, it would require market conditions to improve more rapidly as the new financial year begins.
This update shows a shift from the prior outlook, which did not anticipate adjusted operating profit for FY25 to surpass that of FY24. The consensus forecast for FY25 adjusted operating profit stands at £6.1 million.
Despite facing challenging market conditions, management reported positive sentiment among its investor customers, with new capital flowing into the market. Watkin Jones is currently marketing 3-4 developments that have garnered initial interest.
Furthermore, the company has received two letters of intent for its Development Partnership business, which involves acquiring sites with planning consent or developing consented sites that a partner already owns. Additionally, the company has secured exclusivity on three more sites.
Throughout fiscal year 2024 (FY24), Watkin Jones achieved planning for approximately 2,600 student beds and secured two additional student accommodation sites, subject to planning.
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