Watkin Jones reports healthy rental market as it names new chief financial officer

Watkin Jones has announced the appointment of a new chief financial officer to take over the role in the summer as part of a “managed succession process”. 

Sarah Sergeant will step down from her board position in mid-June, to be replaced by Simon Jones, who until recently held the same position at property outsourcing specialist Mapeley Group. 

Jones will join the board on 21 May, the same day that the group’s half-year interim results are due to be published. He will work with Sergeant to ensure a smooth handover of responsibilities following this publication.  

The 54-year-old joins the AIM-listed student accommodation specialist at a challenging time for the business, which was hit substantially by build cost inflation, high interest rates, building safety remediation and restructuring costs last year. 

Profit dropped 331% in the year to 30 September 2023, despite a marginal increase in turnover.  

In a trading update published today (Tuesday), the firm said the underlying operating residential rental market “continues to perform well”, with good tenant demand and rental growth in purpose-built student accommodation and build-to-rent.  

“Alongside this we are seeing the wider real estate investment market and appetite for forward funds continuing to recover gradually, off a low base,” it said. 

It said that in contractually secure forward sold developments, projects margins were at c.10%, in line with guidance provided at its most recent full-year results. 

The firm expects its performance in 2024 to be weighted towards H2. It also said its provision for building safety remediation work remained unchanged.