Watkin Jones has reported a reduction in revenue due to lower levels of transactional activity in its half-year results. However, the Group anticipates that operating profits will remain at a similar level to the same period the previous year.
In a trading update for the half year to 31 March 2026, Watkin Jones said it continued to see “strong operational delivery”, with in-build schemes achieving margins in line with its stated guidance.
During the period, the Group signed two new transactions – a further PBSA scheme in Bristol through its existing joint venture with Maslow Capital, and a scheme to deliver a hotel on a brownfield site in Wimbledon. The developer also says it is actively marketing a number of schemes which have the potential to underpin the delivery of an improved second half performance.
Watkin Jones says that it has been encouraged by a number of attractive opportunities through its Refresh and Development Partnerships, and has seen an increase of 20% in its Development Partnerships’ pipeline, which has helped maintain the Group’s overall pipeline in line with FY 2025 numbers.
At the end of the half-year period, Watkin Jones reported gross and net cash positions of c.£67million and c.£61million respectively, compared to £80million and £70million as of FY 25.
Looking ahead, Watkin Jones says it is continuing to monitor the evolving geopolitical and economic backdrop, with an eye on any consequential impacts on confidence and activity in the residential investment and construction markets.
The Group says it is taking proactive steps, where possible, to mitigate potential increases in build cost inflation, including earlier procurement of selected sub-contract packages and forward buying of materials.
The trading update continued to say that, despite adverse movement in the UK interest rate outlook since early March creating greater uncertainty, the Group will continue to be agile in optimising its pipeline whilst continuing to diversify its revenue streams.
