gretel
10 Apr 2018
Another planning permission success [link] approved for former Bangor nightclub and more student accommodationPosted by The Bangor Aye | Apr 9, 2018 |Student AccommodationPlanning permission has also been extended for the development of a 36 bed student accommodation by Watkin Jones Group, at the former Victoria Building Land, at Plas Llwyd Terrace, Bangor.The site is located within 100m of Bangor High Street and the City centre; the former Victoria Buildings is located in an elevated position at the top end of Plas Llwyd Terrace, which contains a Gwynedd Council owned and managed public car park which is located directly to the front of the site.All buildings on the site were demolished several years ago and the site is currently vacant, planning for the development was originally approved in 2013 but has now been extended for a further 5 years until 2023."
gretel
06 Apr 2018
Jefferies: Buy with 250p target From Citywire today:Jefferies backs Watkin Jones managementAn update from construction and development company Watkin Jones (WJG) has renewed Jefferies' confidence following the stepping down of the chief executive.Analyst Anthony Codling retained his ‘buy’ recommendation and target price of 250p on the stock, which jumped 4.1% to 188.6p yesterday.‘The price of Watkin Jones shares have fallen by 20% since the announcement of its full-year results on 15 January,’ he said. ‘The financial results were a touch above our expectations, but came with the announcement that the chief executive had decided to stand down.’He added that its update ‘underpins our confidence in the bench strength of the team’ despite still awaiting news of the succession plan.‘It seems to us the understudies have learned their trade well and the first act of 2018 was a powerful one,’ said Codling.
gretel
05 Apr 2018
Peel Hunt reiterate Buy and 230p target [link]
gretel
05 Apr 2018
Very confident trading statement today Looks like an excellent trading statement, with trading nicely in line and a very confident outlook:"OutlookThe Group's progress in implementing its operational and strategic objectives is encouraging and the Board remains confident in the outlook for the full year and beyond."I note in particular that FPG is the "preferred property manager" for the recent launch of CST2. CST1 was very successful and is expanding to 25 assets comprising almost 7,400 beds, with CST2 expected to do the same. So this should be very profitable for WJG:[link] CEO's comments couldn't be much more positive:"Mark Watkin Jones, Chief Executive Officer of Watkin Jones plc, said: "I am delighted with the Group's performance in the period. The outlook for the UK purpose built student accommodation market is positive and demand for our high-quality product remains strong. FPG continues to be successful in securing new contracts and, from the start of the 2018/19 academic year, is contracted to manage over 14,000 beds. "We continue to make solid progress in the build to rent sector, having successfully acquired five build to rent development sites. We remain in positive negotiations on several other opportunities and will update the market as these opportunities progress. "As we continue to consolidate our position as a market leader in the development and construction of student accommodation and make good progress with our build to rent developments, the business continues to demonstrate sustainable growth. Given the encouraging start to the financial year, we believe our business model will continue to deliver strong returns to shareholders."
frusset
22 Mar 2018
Student exodus after Brexit? I bought some WJG this morning, then I thought, is Brexit likely to have much effect on student numbers? It isn't the first time I've done things the wrong way round. Fortunately I still do things in the right order when it would be messy if I didn't.I found "UK universities face EU student exodus due to Brexit" Sept 2017 [link] and "UK risks mass exodus of EU academics post-Brexit, finds report" [link] effect on student numbers might not be very big, because the future is hard to predict and pessimists might be wrong. It's some time since the Brexit vote, and it hasn't stopped WJG from forward selling student accommodation. WJG also have Buy To Rent, and good visibility on student accommodation, which should help them to focus more on BTR if necessary. So I'm not selling.
gretel
21 Mar 2018
Good update RNS today It's the high forward visibility which contributes to WJG's attractiveness - and should make the upcoming H1 trading update on 5th April as upbeat as usual:[link] the developments due for delivery ahead of the 2018/19 academic year have been forward sold. Five of the seven schemes scheduled to be delivered ahead of the 2019/20 academic year have been forward sold, with the remainder now having received planning consent. Five developments, totalling 2,167 beds, scheduled to be delivered ahead of the 2020/21 academic year, have also now received planning consent.""Mark Watkin Jones, Chief Executive of Watkin Jones plc, said: "The excellent visibility in our student accommodation development business continues with this successful planning consent and further site acquisition. The demand for student accommodation remains high and this, coupled with the growing momentum in our build to rent development business, reinforces our confidence in our business model and the markets in which we operate."
gretel
20 Mar 2018
Approval granted for new development Good news today - adds nicely to the stream of secure future income:[link] for student apartment towers20 Mar 2018Approval has been granted for the construction of two towers between 16 and 18 storeys high in Coventry, which could accommodate almost 800 students.The application from Watkin Jones and Son related to land on the north side of Whitefriars Lane and would provide beds for up to 778 students. The proposal also included a new purpose-built three-storey centre for the Coventry Boys and Girls Club........"The design of the development is considered to be of high quality and it is not considered that the development will have any significant adverse impact upon neighbouring amenity, highway safety or heritage assets."Work is expected to be completed ahead of the 2020/21 academic year."
gretel
08 Mar 2018
Good news likely next week Looks like good news coming next week:[link] "Student apartment towers expected to be approved 8 Mar 2018 A bid to build two towers between 16 and 18 storeys high in Coventry, which could accommodate almost 800 students, is expected to be given the green light next week. The application from Watkin Jones and Son relates to land on the north side of Whitefriars Lane and would provide beds for up to 778 students. The proposal also includes a new purpose-built three-storey centre for the Coventry Boys and Girls Club. The two towers would be linked by a second floor canopy over the main entrance. Coventry City Council's planning committee is set to make a final decision on the plan at a meeting on Thursday 15 March 2018. A council document published ahead of the meeting said: "The application is considered to be acceptable in terms of the principle of development as student accommodation in this highly sustainable location. "The design of the development is considered to be of high quality and it is not considered that the development will have any significant adverse impact upon neighbouring amenity, highway safety or heritage assets." If approved, work is expected to be completed ahead of the 2020/21 academic year."
claude reins
08 Mar 2018
Alles ist klar! It all comes out in the wash. Sorry to hear about Mr and Mrs issues. Hope that the sales dont go much deeper into the bigger pile......as well as my personal sympathies to the unhappy couple / family. Been there, done that, not pretty......but at least that has cleared up the situation in the sense that we know what is going on to a greater extent than we did when he resigned suddenyl as CEO at the tender age of 49 is it?.Still very strong company and business model and I hope that they get on with the build to rent sector which is likely to explode, as well as continue to make hay whilst the sun shines in the student build and maintenance sector.
gretel
19 Feb 2018
AGM summary, plus new block in Chester A superb report from WJG's AGM from Glaws2, which I hope he won't miknd me copying here:"A very brief AGM report below; there were 4 private investors - the meeting ran to 75 mins with the majority of the time on shareholder questions. Senior management (below board level) from WJG also attended. 1. Very confident of the business going forward; BTR will be the growth engine – see big opportunities here with a “wall of money” waiting to come in. 2. BTR specification being honed; got the impression that the Leeds development was very much a proof of concept. 3. Questioned on the lack of forward sales on BTR and thus the carrying of the development risk they were emphatic that this is a short term event and once they are satisfied that they have got the right BTR model will move to forward selling in the same way that they do on the student side. Thought it would be 12-18 months to get to this position. 4. CEO resignation – due to difficulties in personal life. Stressed that it was definitively not the case of getting out due to impending problems – quite the reverse in fact in terms of strength of the business. City reaction was surprise, disappointment but acceptance given the business was strong. Indeed some institutions have increased holdings in the light of recent share price weakness. 5. Future role for Mark Watkins-Jones – would like him to become a NED (and he has indicated he is willing); but have held off on the appointment as they want the CEO to have an input into that decision. If he were to be appointed an additional NED would also be added as counter balance."WJG have also just submitted plans for a new apartment block in Chester - to be completed by 2020:[link] "Plans in for Chester apartments 15 Feb 2018Plans to build a Chester apartment block on the site of a former motor parts factory and car rental office have been submitted.Watkin Jones is behind the proposals through Trafford Street Chester Ltd.The site is located on Trafford Street and nearby St Anne Street, and sits on brownfield land. It is currently occupied by two vacant units which were occupied by Partco and Hertz.The application is to erect a part-four and part-five-storey complex comprising 35 high quality apartments; 16 one-bed and 19 two-bed. It would also include 44 cycle spaces and 39 car parking spaces.A planning statement submitted by Watkin Jones notes that the scheme would have a "positive impact" on the city, providing the opportunity to "comprehensively redevelop an important, underutilised brownfield site"."This proposal is immediately deliverable," it added."There is a commitment by the Watkin Jones Group for delivering this development to enable completion by 2020."
Rhigos
16 Feb 2018
Reason for today's rise of 4.9%? Anyone know why SP shot up today?
kooiker
23 Jan 2018
Re: Tipped by Simon Thompson in the IC Many thanks Gretel for the excellent research you have provided over the last few months - it is much appreciatedm
gretel
23 Jan 2018
Tipped by Simon Thompson in the IC as follows:"Watkin Jones built on solid foundationsShares in Watkin Jones (WJG:207.5p), a construction company specialising in purpose-built student and private rented sector (PRS) accommodation, have been on a tear since I first recommended buying at 103p when the company floated on Aim ('A profitable education', 3 Apr 2016). I last advised running profits at 223p ahead of this month’s full-year results (‘Trading plays’, 9 Oct 2017), and the price subsequently hit the 250p target I highlighted. The results certainly didn’t disappoint, but the share price has since pulled back on news that chief executive Mark Watkin Jones, who has so successfully led the company, is stepping down for personal reasons. The caution is overdone.In the 12 months to the end of September 2017, Watkin Jones’ underlying pre-tax profits and EPS both rose by 13 per cent to a record £43.3m and 14p, respectively, on revenues up from £267m to £302m, reflecting the completion of 10 student accommodation developments. Cash generation was mightily impressive, driving net funds up by more than a quarter to £41m. The pipeline is impressive, too, as all 10 student accommodation developments scheduled for delivered this year have been forward sold, as have 85 per cent of the targeted beds for the 2019 financial year. Furthermore, the company’s activity in the build-to-rent market is gathering pace. Watkin Jones now has five development sites targeting 1,500 units, having completed its first scheme of 322 units in Leeds.Reassuringly, the forward pipeline de-risks forecasts which point to EPS of 15.2p this year, and 16p in 2019, so underpinning expectations of a further 10 per cent hike in the payout per share to 7.3p and 8p, respectively. Also, as more developments complete, net funds are forecast to swell to £74m by September 2018, a sum worth 25p a share. This implies the shares are attractively rated on 12 times forward cash-adjusted earnings and offer a prospective dividend yield of 3.5 per cent. Buy."
PIE-EATER
19 Jan 2018
IC - still rated as buy Another impressive performance from property developer Watkin Jones (WJG) was marred by the news that, after 15 years at the helm, chief executive Mark Watkin Jones is to step down for personal reasons – the shares dipped 5 per cent on the news.Revenue was boosted by a full-year contribution from Fresh Student Living, acquired in 2016, while 17 student accommodation developments were sold in the year to September 2017, providing 6,578 student beds. A further 23 sites providing 9,120 beds are in the pipeline, with 15 already forward sold.As well as providing student accommodation, Watkin Jones is also developing its build to rent pipeline, and is working towards building around 1,500 units between 2018 and 2022. The first scheme was successfully completed in Leeds, providing 322 units.Fresh Student Living has been integrated with the Five Nine Living brand and now has 16,082 student beds under management, up from 12,337 a year earlier, while it has also been contracted to manage 535 build to rent units.Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to September 2018 of £47.8m and EPS of 15.2p (from £43.8 and 14.3p in 2017).WATKIN JONES (WJG) ORD PRICE: 213p MARKET VALUE: £544mTOUCH: 212.5-213.5p 12-MONTH HIGH: 251p LOW: 117pDIVIDEND YIELD: 3.1% PE RATIO: 15NET ASSET VALUE: 49p NET CASH: £41mYear to 30 Sep Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)2015 244 22.2 22.2 nil2016 (restated) 267 13.3 3.7 42017 302 43.3 14.0 6.6% change +13 - - +65Ex-div: 25 Jan Payment: 28 Feb Watkin Jones has a capital-lite business model whereby developments are forward funded by the ultimate owner. Student accommodation and build to rent are also two of the strongest sub-sectors in the property market. Despite the latest fall, the shares are still ahead of our buy tip (195.25p, 29 Jun 2017), and we’re still buyers.
gretel
19 Jan 2018
News: planning permission granted! Excellent news for WJG - permission given for a big 430-bed student housing development in Belfast::[link] £20m 430-bed student development approved by Belfast City Council 18 January, 2018 01
0 PLANNING permission has been granted for a new 430-bed student housing development close to the new Ulster University campus in Belfast.Belfast City Council's planning committee formally ratified the application for the site at Little Patrick Street last night, with completion on the major project expected by August next year.The £20 million development is a joint venture between Lacuna Developments and Watkin Jones, who purchased the site last year from UniCiti. In a statement the developers expressed delight the proposals have now been approved."This scheme will help meet ongoing demand for well-located high quality managed student accommodation. The proposals are part of more than £100 million of investment that the partnership of Lacuna Watkin Jones has invested in Belfast. We look forward to delivering a high quality, and well managed scheme in this part of Belfast city centre. The area surrounding our development will continue to transform as Ulster University's regeneration is completed. We look forward to continuing our positive working relationship with Belfast City Council and bring forward further investment and development in the city, contributing towards the city's growth ambitions".etc"
