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Watkin Jones PLC on Tuesday said it has swung to a loss, following ‘significant cost inflation and volatility’ in the real estate funding market. Watkin Jones is a London-based student accommodation developer and manager. Its shares were down 5.8% to 49.65 pence each in London on Tuesday afternoon. Revenue in the financial year ended September 30 rose 1.5% to £413.2 million from £407.1 million a year earlier. The company swung to a pretax loss widened to £42.5 million from a profit of £18.4 million. Administrative expenses in the year climbed to £72.8 million from £43.4 million. Cost of sales climbed to £378.4 million from £339.5 million. For the full-year, Watkin Jones said it has paid out a dividend of 1.4p, down 81% from 7.4p a year ago. It has not declared a final dividend ‘given the uncertain market backdrop.’ Looking ahead, Watkin Jones expects to report an adjusted operating profit between £15 million to £20 million for financial 2024. This is in line with guidance announced back in October. Chief Executive Officer Alex Pease said: ‘Significant cost inflation and volatility in real estate funding markets meant that FY23 represented a period of unprecedented challenge for the business. However, I am pleased that against this backdrop the group demonstrated resilience and agility, taking a number of important actions operationally.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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