Watkin Jones PLC (AIM:WJG) said full-year adjusted operating profit is now expected to be broadly in line with its first-half result after several anticipated transactions were pushed beyond the September year-end.
The residential-for-rent developer said investor discussions remain active on a small number of schemes that had been targeted for completion in the fourth quarter, but the board now believes it is unlikely that all will be finalised before the end of the financial year.
Despite the weaker profit outlook, Watkin Jones expects to finish the year with net cash above the £61 million reported at the half-year stage, reflecting continued focus on cash and cost management.
Operationally, the group recently achieved practical completion on major build-to-rent schemes in Belfast and Cardiff comprising a combined 1,345 units. Aggregate margins were in line with previous guidance.
Watkin Jones also continues to work through its building safety rectification programme, with four projects currently on site and two buildings expected to be completed during the current financial year. The associated provision remains under review as investigations and discussions with building owners and supply-chain partners continue.
The company said it was continuing to evolve its business model to diversify revenue streams and believes its balance sheet leaves it well placed to benefit from improving conditions in the UK residential rental market.
