Watkin Jones PLC on Wednesday said it had increased its cost funding and was exploring the sale of non-core assets on its balance sheet.

Shares in Watkin Jones, a London-based student accommodation developer and manager, fell by 35% to 50.20 pence in London on Wednesday morning.

Watkin Jones said it expected an impairment charge of around £10 million related to a balance sheet review, which it said was due to a ‘more challenging macro-economic backdrop’.

The company said it expects its Financial 2024 profit before interest & taxes to be around £15 to £20 million, as the company predicts that the challenging market conditions will persist into the coming financial year.

Watkin Jones said it was set to increase exceptional provisions for remedial works by around £30 to £35 million.

The company announced that Chief Executive Officer Richard Simpson has stood down from his positioned, and that Chief Investment Officer Alex Pease has become Interim Chief Executive effective immediately, whilst a formal process is undertaken to appoint a permanent CEO.

Chair Alan Giddins: ’In taking on the role of Interim CEO, Alex provides both continuity, in what remains a very challenging backdrop for the sector, as well as significant experience in the residential for rent market which the board believes will help enable the group to regain momentum ahead of market conditions improving.‘

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