Residential and student accommodation group Watkin Jones PLC (AIM:WJG) has blamed a slow pace of recovery and high interest rates for a paucity of dealmaking in its 2024 financial year.
In a Wednesday trading update, the group said it had a number of schemes being actively marketed.
“Nevertheless, overall market activity through the summer has been slower than anticipated, principally due to the continued uncertainty over the pace of interest rate cuts, and as such we believe it is now unlikely that we will close any further transactions before the financial year end.”
Full-year performance will inevitably be lower than expected, said Watkn Jones, before an anticipated rebound the following financial year, starting from 30 September.
“The lower number of transactions in FY24 will, however, have a consequential impact on the results in FY25, given that schemes will not contribute to revenue in future periods until they are forward sold,” said management.
As a result, Watkin Jones said it is “undertaking a review of a range of options that may be available to enhance its medium and longer term funding position, thereby allowing the group to capitalise on a market recovery”.