Watkin Jones must complete transactions in final quarter to make progress on operating profit

Watkin Jones signed six contracts worth roughly £60m in the three months to July, but says progress on profitability depends on the completion of several transactions in the final quarter.

In a trading update, the student accommodation and build-to-rent specialist set out the progress it had made in the three months to 30 June 2026.

This included five contracts for its ‘refresh’ business, with the deals relating to the refurbishment of schemes covering more than 1,750 student beds across Birmingham, Edinburgh, Newcastle and Glasgow.

Meanwhile, its ‘delivery partnership’ business was appointed by Marick Real Estate to deliver the redevelopment of 38-40 George Street into Staycity Wilde Oxford, a 145-unit aparthotel.

The group said it was engaged with investors on a small number of transactions that could conclude in the final quarter and which will be “required to deliver adjusted operating profit progression in the second half over the first half”.

It added that the board was “mindful that the effects of ongoing economic and political uncertainty on real estate funding liquidity represent ongoing risk to the timing and completion of these transactions”.

The trading update did not include any revenue or profit figures for the period. In its full-year results published last December, the builder recorded a drop in turnover, an operating loss of £5.8m and a pre-tax loss of £8.7m. 

Its adjusted pre-tax figure showed a profit of £5.6m, though this was down from £9.2m the previous year.

Chief executive Alex Pease said: “While market conditions remain challenging and continue to impact the pace of recovery and short-term real estate transaction liquidity, the long-term fundamentals of our end markets remain attractive. 

“The signing of six new contracts, with a combined value of c. £60 million at margins in line with guidance, signals further progress of our strategy to diversify the business, allowing us to strengthen our secured pipeline and enhance future revenue predictability”.