Watkin Jones has reported that its operating profit in the first half of the year has increased by 122.2% year-on-year to £4m.

The residential property developer and operator also saw its revenue increase by 13.8% year-on-year in the six months to 31 March 2024, rising to £175.1m.

It pointed towards previously sold developments on site, as well as one forward sale completed in March 2024 as the reasons behind this revenue jump.

Furthermore, Watkin Jones has boosted its profit before tax from £300,000 in the first half of the 2023 financial year to £3.4m in the same period in the 2024 financial year.

In its outlook for the rest of the financial year, it said that it has £400m of contractually secure forward sold revenue as of 31 March, of which £150m is for delivery in the second half of the year. The firm also has a total secured pipeline of £1.4bn.

Watkin Jones said that the investment market is "gradually showing signs of recovery" as economic sentiment improves, although it warned a slower than expected reduction in interest rates has potential to impact the pace of recovery.

It expects its 2024 financial year adjusted operating profit to be at least £15m, and within the previous guided range of between £15m-20m.

Chief executive officer at Watkin Jones, Alex Pease, said: "First half trading was in line with our expectations, with a focus on execution and operational performance. Alongside progress on our schemes in build, we have continued to develop the group's longer term pipeline, with new land secured and further planning applications submitted.

"There has been gradual improvement in sentiment in the property investment market, which we expect to support a continued recovery in forward fund transaction demand, as evidenced in the forward sale of our PBSA scheme in Bristol in March.

"With our established and specialist end-to-end development platform and a sector leading reputation in the BTR and PBSA markets in the UK, our focus remains on positioning the business to best capitalise on a market recovery."

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