Watkin Jones PLC - London-based student accommodation developer and manager - Turns to loss in the half-year ended March 31 after building safety pledge. Pretax loss stands at £16.6 million from a profit of £25.8 million a year ago. Building safety pledge costs it exceptional costs of £28.0 million ‘for the potential costs of the remediation work required,’ it says. No exceptional costs a year ago. Revenue grows to £193.0m from £178.4 million a year ago. Declares 2.9 pence per share interim dividend, to be paid in late June, up from 2.6p a year ago.
Meanwhile, firm sells a major portfolio of purpose built student accommodation schemes to EQT AB, a Stockholm-based institutional investor. ‘This has a financial year 2022 profit contribution of about £20 million,’ Watkin Jones explains.
The Building Safety pledge was established following the Grenfell Tower fire in 2017 to ensure the safety of highrise buildings, by removing combustible materials such as cladding. Housebuilders who sign are committed to following new guidelines for work on potentially dangerous cladding on high-rise buildings between 36 feet and 59 feet.
Current stock price: 236.50 pence, up 2.4% on Tuesday
12-month change: down 2.9%
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