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Highlights
Watkin Jones expects FY25 revenue of approximately £280 million and adjusted operating profit in line with current market expectations.
Gross cash stood at around £80 million and net cash at £70 million as of 30 September 2025, with post-year-end cash inflows further improving liquidity.
Three new development partnerships were signed during FY25, while construction and completion milestones remained on schedule.
Watkin Jones plc (LSE:WJZ) has released a trading update for the financial year ended 30 September 2025 (FY25), ahead of publishing its final audited results. The Group reported steady progress across its core operations and confirmed that full-year financial performance is expected to align with current market forecasts.
Financial Performance and Cash Position
For FY25, Watkin Jones expects to report revenue of approximately £280 million and adjusted operating profit in line with market expectations. The Group attributed its stronger second-half performance to solid operational delivery across previously sold schemes and key transactions completed during the period.
As of 30 September 2025, gross cash stood at around £80 million (FY24: £97 million), and net cash was approximately £70 million (FY24: £83 million). The company noted that several cash receipts, including around £10 million linked to the Glasgow joint venture transaction, were received in early October, further strengthening the cash position post year-end.
Operational Review and Development Activity
During the second half of FY25, Watkin Jones focused on disciplined cost management and timely project execution. Three schemes comprising around 600 rooms were completed on schedule during the period. The Group’s Refresh initiative—targeting refurbishment and redevelopment opportunities—continued to gain momentum, with three active projects underway and an expanding pipeline.
The Group’s in-build developments remain on budget and on schedule, with three additional completions totaling approximately 1,900 rooms expected in FY26.
Watkin Jones also announced progress across its partnership and acquisition strategy. During the year, three development partnerships were signed and have commenced construction, including projects in St Helens (affordable housing), Southwark (aparthotel), and Bristol (student accommodation). In addition, three new sites were exchanged, subject to planning approval, representing around 1,000 future rooms.
The Group also made progress on building safety rectification, completing works on six buildings in FY25. The existing provision for these obligations continues to be reviewed as investigations and discussions with property owners advance.
Outlook and Strategic Priorities
Looking ahead to FY26, Watkin Jones maintains a robust development pipeline supported by growing demand across its core sectors. While broader market conditions remain challenging, the Group expects continued opportunities within the student accommodation and build-to-rent markets, both of which are underpinned by structural undersupply and investor interest.
In the medium term, Watkin Jones plans to selectively expand its portfolio, focusing on quality assets in high-demand urban locations. The Group’s operational discipline, strategic partnerships, and capital management are expected to support its objectives as it enters the new financial year.
