Watkin Jones says revenues hit by lower level of transactions

Watkin Jones is anticipating its half-year operating profit to be similar to a year ago despite a drop in revenue.

In a trading update for the half year ended 31 March 2026, the build-to-rent and student accommodation specialist said revenue had been hit by lower levels of transactional activity.

The group signed two deals during the period: A purpose-built student accommodation development in Bristol with Maslow Capital and a hotel scheme on a brownfield site in Wimbledon.

“We are actively marketing a number of schemes which have the potential to underpin delivery of an improved second half performance,” the firm said, adding that it had seen a 20% increase in its development partnerships pipeline.

Watkin Jones’ gross and net cash at 31 March 2026 was roughly £67m, down from £80m, and £61m, down from £70m, respectively.

The firm said it continued to “monitor the evolving geopolitical and economic backdrop and are mindful of any consequential impacts on confidence and activity in our residential investment and construction markets”.

It added that it was “taking proactive steps” to mitigate build cost inflation, including earlier procurement of sub-contract packages and forward buying of materials.

Last December, the builder recorded a drop in turnover in its full-year results, as well as a pre-tax loss. Its adjusted figure showed a profit of £5.6m, though this was down from £9.2m.