Half year results for the six months to 31 March 2016
Watkin Jones plc (AIM:WJG), a leading UK developer and constructor of multi occupancy property assets, with a focus on the student accommodation sector, announces its maiden half year results for the six months ended 31 March 2016. The Board is pleased to report a successful first six months of the financial year with trading in line with its expectations.
Financial Highlights H1 2016 H1 2015 Movement
Revenue £145.9 million £103.8 million +40.6%
Operating profit before
exceptional IPO costs £17.0 million £9.3 million +83.5%
Adjusted EBITDA1 £17.3 million £9.5 million +82.0%
Adjusted basic EPS2 5.2 pence 2.8 pence +87.0%
1 Adjusted EBITDA comprises operating profit before exceptional IPO costs, adding back charges for depreciation and amortisation.
2 Adjusted basic EPS is calculated using the profit for the period from continuing operations excluding exceptional IPO costs.
· Strong revenue and profit performance during the half year driven by student accommodation developments
· 1.33 pence per share proposed interim dividend; in line with IPO guidance
· £15.4 million net cash at 31 March 2016 (£4.0 million net debt at 31 March 2015)
· New £40 million five year Revolving Credit Facility and £10 million Working Capital Facility with HSBC put in place at IPO to provide development funding flexibility and working capital headroom. Unutilised at 31 March 2016.
· Successful admission to AIM on 23 March 2016, with business continuing to deliver strong operational performance through the process
· £114 million development value of six student accommodation developments (1,660 beds) forward sold since 1 October 2015
· £90 million development value in legal negotiations for forward sale of three further student accommodation developments (1,234 beds)
· Planning permissions for nine student developments (3,478 beds) obtained since 1 October 2015, including five obtained since admission to AIM (1,733 beds)
· Development pipeline - Over 11,300 student beds in the pipeline across 31 sites, with 17 forward sold and four more in legal negotiations or under offer
· Delivery pipeline -
· 2016 deliveries - All forward sold and on target to be completed ahead of the 2017 academic year
· 2017 deliveries - All sites secured with planning and only one remaining to sell which is in legal negotiations
· 2018 deliveries - All sites secured and progressing satisfactorily
· 2019/20 deliveries - four sites secured and a number of additional site acquisitions progressing
· Fresh Student Living Limited ("Fresh") acquired for £15 million prior to IPO and successfully integrated into the Group. Fresh is engaged in the operational management of purpose built student accommodation assets
· Fresh student accommodation beds under management already contracted to increase from 8,310 beds in FY 2016 to 17,924 beds by FY 2020
· Five Nine Living Limited established for the management of multi occupancy property assets in the Private Rented Sector ('PRS'), leveraging the expertise of Fresh
· Watkin Jones plc Board formally established, comprising Grenville Turner (Chairman); Simon Laffin (non-executive director); Mark Watkin Jones (CEO) and Philip Byrom (CFO).