Residential developer and manager Watkin Jones is expecting full-year profits to stand at similar levels to 2025, despite a fall in revenue in its half year to the end of March caused by lower levels of deals.
In a trading update, Watkin Jones said the group has seen “strong operational delivery” during the period, with margins in line with its stated guidance.
The group ended the period with gross and net cash of £67m and £61m, respectively, down from £80m and £70m, respectively, in the same period last year.
In its previous trading update for the year to 30 September 2025, Watkin Jones posted a £8.7m loss before tax and a 22.8% year-on-year drop in revenue to £279.8m, but pointed to more encouraging signs for the business in 2026.
Watkins Jones said 2026 operating profits “are expected to be at a similar level to HY 2025, despite a reduction in revenue caused by lower levels of transactional activity”.
The group made two acquisitions in the period: £101.7m student accommodation scheme in Bristol, via its joint venture with Maslow Capital, and a brownfield site in Wimbledon, South West London, where it its plans to develop a hotel
The company said: “We continue to monitor the evolving geopolitical and economic backdrop and are mindful of any consequential impacts on confidence and activity in our residential investment and construction markets.
“We are taking proactive steps, where possible, to mitigate potential increases in build cost inflation, including earlier procurement of selected sub-contract packages and forward buying of materials.
“While the adverse movement in the UK interest rate outlook since early March has created greater uncertainty with regard to future transactional liquidity conditions, the group will continue to be agile in optimising its pipeline, while continuing to diversify its revenue streams.”
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