Shares in build-to-rent developer Watkin Jones PLC (AIM:WJG) fell 12% to 31p after it decided not to declare an interim dividend as profits fell in the first half.
Operating profit for the six months ended 31 March dropped to £0.4 million from £4 million a year ago, with pre-tax profits down 94% to £0.2 million as revenue decreased 26% to £129 million.
Net cash was more positive, coming in at £73 million compared to £44 million last time as management "maintained focus on effective cash management".
On the outlook, the group stuck with its full-year expectations as it had £270 million of contractually secure forward sold revenue at the end of March, of which around £105 million is for delivery in the second half of the year.
The company said the board "is prioritising the maintenance of financial flexibility during this period of market disruption and consequently is not declaring an interim dividend", but added that this approach will be kept under review.
Analysts at Peel Hunt said the first-half figures were "as expected" but while the overall market demand for purpose-built student accommodation and build-to-rent assets remains strong, "new capital is still slow to commit".
Despite guidance being held, the analysts said that "political and economic uncertainty, both globally and in the UK, has led to a continuation of challenging markets, with investors showing interest but deferring capital commitments on new projects. Consequently, we are lowering our forecasts, and cut FY26E PBT 54% from £14 million to £6.5 million and FY27E 39% to £13.5 million.
After the shares had climbed 78% in the year to date from 20p to above 39p.