Watkin Jones returns to profit amid student accommodation boost
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Watkin Jones swung back to profit last year despite 'subdued' investment demand for purpose-built student accommodation and built-to-rent properties. The property developer, which completed the sale of two major PBSA schemes last year, reported an adjusted pre-tax profit of £9.2million for the 12 months ending September, having made a £2.9million loss in the previous 12 months.
Its improved result reflected the forward sales of student housing developments at Gas Lane in Bristol and Stratford in East London, which have a combined total of 657 beds. The Stratford scheme was sold to a new joint venture Watkin Jones created with the Housing Growth Partnership, a social impact investor partly owned by Lloyds Banking Group.
Watkin Jones said its earnings also benefited from the successful completion of six developments and cost control actions implemented the prior year. Profits rose despite the firm's total revenue falling by 12.3 per cent to £362.4million, mainly due to the HGP deal being counted as the disposal of a subsidiary instead of a land sale.
Recovery: Watkin Jones swung back to profit last year after completing the sale of two major purpose-built student accommodation (PBSA) schemes. On a statutory basis, the company slashed its annual pre-tax losses from £42.5million to just £0.3million as its building safety costs fell by £6.7million to £48million.
