AIM new-boys make pleasing trading statement

NEWLY listed on the AIM, Watkin Jones, is reporting a successful six months to March 31 in its first pre-close trading statement.

The Bangor, North Wales-based developer and constructor of multi occupancy property assets, with a focus on student accommodation, said it had net cash at the period end of £12.5m.
 
During March, four student accommodation developments in Glasgow, Birmingham, Bath and Sheffield, representing 1,175 beds in total with a gross development value of £82m were sold in advance.

A total of 16 developments, comprising 6,395 beds, have now been forward sold, including all of the developments planned to be completed by September 2016 and seven of the nine planned to be completed by September 2017, and the group is on site to deliver the developments.

Watkin Jones has a further three developments totalling more than 900 beds, under offer and in legal negotiations and a number of other planning applications have been submitted in respect of the ongoing pipeline.  

Also in March , the group’s asset management subsidiary, Fresh Student Living, secured a further 536 bed scheme in Glasgow, which broughts the total number of beds expected to be under management for the start of the 2016 academic year to 12,663.

The group’s said its progress in delivering the current development pipeline is encouraging and the board remains confident in the outlook for the full year.
 
Chief executive Mark Watkin Jones said: “Our performance over the past six months reinforces the attractiveness of our end-to-end business model to institutional investors.
 
“The transition to a public company has gone very smoothly and I am delighted by the positive response to our successful admission to AIM on March 23.”