The family lead of Watkin Jones PLC (LON:WJG) is to stand down from his role as chief executive on the back of record results for the property developer.
Mark Watkin Jones cited personal reasons as he said he will leave his position once a suitable successor has been found, with a formal search process due to get underway shortly.
READ: Watkin Jones rises as student housing demand “remains strong”
“After careful consideration I have decided that it is necessary for me to step back from my position as chief executive officer,” said Watkin Jones.
“Solid foundations are in place for my successor to work with, including an excellent management team that has supported me over the years in successfully growing the business and who will continue to drive Watkin Jones forward for the long-term benefit of our shareholders.”
Chairman Grenville Turner thanked Watkin Jones for his contribution to the business in his 15 years at the helm, adding that the board is keen to retain his “valuable knowledge and experience”, possibly through making him a non-executive director.
Profits soar in 2017
Watkin Jones’ departure comes as the Bangor-based company saw profits soar and annual revenues top £300mln in its first full year as a listed company.
Pre-tax profit at the student accommodation builder more than tripled to £43.3mln (2016: £13.3mln) in the 12 months to September 30, on revenues of £301.9mln (2016: £267.0mln), a 13% year-on-year rise.
The company listed back in early 2016 and the absence of £26.6mln of IPO costs this time around was one of the main reason for the significant improvement in profitability.
Watkin Jones is proposing a final dividend of 4.4p – almost two thirds higher than the 2.67p it paid out last year.
“We are delighted to report another impressive set of final results demonstrating our ability to continue the strong momentum established during our first year on the AIM market,” said outgoing CEO Watkin Jones.
“The group has generated strong revenue and earnings growth, driven by our core student accommodation development business.
“We are also pleased to report further increases in gross margin, supported by the strong location of our student accommodation developments and first full year contribution from Fresh Property, the group's accommodation management business.”
Shares were down 5.6% to 213.4p on Monday morning.