Sees FY adj opg pft 10-12 mln gbp; no progress in FY25 (Il Sole 24 Ore Radiocor) - London, 21 Aug - The UK developer Watkin Jones said it was examining a range of options to enhance its medium and longer term funding position, thereby allowing the group to capitalize on a market recovery.

The company continues to actively review opportunities to expand its longer-term pipeline and sees an increasing number of attractive potential opportunities in the land market and through alternative transaction structures, which will be important to drive profitability in FY26 and FY27, it said.

The developer said that market activity over the summer has been slower than expected due to uncertainty regarding the pace of interest rate cuts. It therefore does not expect to close any further transaction before the end of the fiscal year on September 30, 2024.

The lower number of transactions in the 2024 full year will have a consequential impact on the results next year, given that schemes will not contribute to revenue in future periods until they are forward sold.

"While the absence of further forward funds prior to the year end will result in performance being lower than previously anticipated, the Group is expected to show material improvement in FY24," it said.

It expects adjusted operating profit to be in the range of 10-12 million pounds compared to 0.2 million the previous year. It does not expect adjusted operating profit in 2025 to be above 2024, with performance significantly influenced by the evolution in forward fund liquidity over the coming months.

"While it is possible to deliver year on year progress in FY25, this would require market conditions to improve at a faster pace as we enter the new financial year," it said.

Watkin Jones said it has been effective in its focus on cash generation through the second half with gross cash of around 80 million pounds at September 30, 2024, up from 67 million the prior year, and net cash is anticipated to be approximately 65 million pounds, up from 44 million and ahead of previous expectations.

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(RADIOCOR) 21-08-24 10:12:24 (0192) 5 NNNN