Watkin Jones building on firm foundations
Watkin Jones delivered a robust set of results this morning, reflecting the underlying health and demand of the build to rent market in the UK. Watkin Jones is capitalising on the fact that we do not build enough homes. Build to rent is a smart way to supply additional homes, tap into the growing investor demand for residential assets and provide a partial solution to the housing affordability crisis. The pandemic has not dented the demand for build to rent and the Group's forward sales and a growing construction pipeline provides firm foundations for investors
Full-year results highlights
Revenue £430.2m up 21.5% (2020: £354.1m)
Underlying Operating profit £57.3m up 10.8% (2020: £51.7m)
Underlying earnings per share 16.4p up 11.2% (2020: 14.7p)
Dividend per share 8.2p up 11.6% (2020: 7.4p)
Net cash £124.3m up 31.1% (2020: 94.8m)
With a growing demand for residential assets and a growing ford order book and pipeline, the future looks bright for Watkin Jones as it seeks to meet the demand unmet by the traditional UK housebuilders.
About Watkin Jones
Watkin Jones is a specialist homebuilder focused on the growing build to rent market. Operating through several divisions spanning homes specifically built for the private build to rent market, purpose-built student accommodation and affordable homes.
In our view, Watkin Jones is well placed in these growing and underserved sectors and is capitalising on a market opportunity the mainstream housebuilders have so far overlooked.
The focus on the affordable and rented sectors is very astute given the housing affordability crisis faced, these days, by the overwhelming majority of aspiring first time buyers.