Property & Construction
Watkin Jones plc
Analysts
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Company Description
Watkin Jones (WJ) develops build-to-rent (BTR) and purpose-built student accommodation (PBSA) schemes, largely forward-funded by institutional investors, which acquire sites from WJ with the benefit of planning and then pay for the works monthly as development progresses, thus reducing capital tie-up for WJ. The group also provides an accommodation management service through its Fresh Property Group (FPG) business, which manages both WJ and third-party developed assets, and operates a more traditional housebuilding business focused on the North West. The company, which was founded by carpenter Huw Jones in 1791, evolved as a developer before specialising in student accommodation, and was admitted to AIM in 2016.
Investment Summary
We believe WJ offers a unique low-risk, capital-light development and asset management model for the growing private and student rental markets. We believe the group should benefit from continuing growth opportunities in new student accommodation and that its experience offers it 'early mover advantage' in the less mature but potentially faster growing BTR sector. This is all tied together by FPG in what we have defined as a 'virtuous circle'. The forward-funding model offers attractive margins, but with little capital tie-up and risk, since the institutional investors then own the assets and assume long-term rental exposure. WJ's development risk is minimised by setting fixed-cost contracts with its supply chains. FPG enjoys good revenue visibility due to long-term contracts with building owners.
Recent Content
On track for FY forecasts driven by rush to rent
17/05/2022
Residential-for-rent developer and manager Watkin Jones has confirmed it is on track to meet FY2022E expectations of rising […]
FY outlook confirmed with growing pipeline
13/04/2022
Residential-for-rent developer and manager Watkin Jones confirms in today’s trading statement for the six months to 31 March […]
Earnings beat estimates, driven by BTR hunger
18/01/2022
Residential-for-rent developer and manager Watkin Jones today delivered an 11% rise in PBT to £51.1m for FY2021, beating […]
Profit ‘in-line’ and cash ‘beat’ in FY21E update
02/11/2021
Residential-for-rent developer and manager Watkin Jones has confirmed in today’s trading update that operating profit for the year […]
Demand grows in rental and student markets
29/10/2021
Residential-for-rent developer and manager Watkin Jones will next week release a trading update and host a Capital Markets […]
Market progress highlights target growth areas
06/09/2021
Residential for rent developer and manager Watkin Jones has reported encouraging progress in homes delivery, institutional investor demand […]
Momentum building with investor confidence
18/05/2021
Residential for rent developer and manager Watkin Jones reports increasing investor confidence in today’s HY 2021 results, which […]
Growing H1 pipeline supports our FY estimates
14/04/2021
Residential for rent developer and manager Watkin Jones has signalled “maintained momentum” during H1 in today’s trading statement, […]
Leaner, lighter strategy as investment revives
19/01/2021
Residential for rent developer and manager Watkin Jones today posted FY 2020 results, in which profits, cash and […]
Company Management Team
Sarah Sergeant
Chief Executive Officer
Sarah was appointed to the Board as Chief Financial Officer Designate on 6 October 2021, assuming the CFO role in November 2021. She was previously the Chief Financial Officer of the UK & Ireland region at Compass Group PLC, the FTSE 30 food and support services company. She has held a number of senior finance and operational roles over her 13-year tenure at Compass, including Group Financial Controller, M&A Director, and CFO of the Asia Pacific region, based in Singapore. Sarah brings considerable financial, strategic and operational experience from across the commercial spectrum. She is a chartered accountant.
Philip Byrom
Chief Financial Officer
Philip has been the Chief Financial Officer of the Group since joining the business in 2002, and has led a number of complex financing arrangements as well as material property and corporate transactions for the Group in addition to his core role as CFO. Philip qualified as a chartered accountant with Price Waterhouse in 1990 and progressed rapidly to senior manager, a role in which he had responsibility for several public company clients. Philip moved into industry in 1995 and has gained broad experience through a number of group financial controller and divisional finance director roles, including a role as divisional finance director for pharmaceutical technologies at BWI plc. In addition to his chartered accountancy qualification, Philip holds an honours degree in civil engineering from Manchester University.
