Shares in Watkin Jones dropped by over 5% earlier today after the residential for rent developer and operator said that it is unlikely that all of its investor transactions will conclude in the current financial year.

The firm set out in its Q3 update that it has been engaged with investors on a small number of transactions with the potential to conclude in Q4.

However, these are now “unlikely” to be finalised by year end on 30 September, and as a result, its operating profit for the full year are expected to be at a similar level to H1.

Watkin Jones said it has continued to execute effectively on its broad commercial objectives, with a particular focus on effective cash and cost management and operational delivery despite ongoing geopolitical uncertainty and economic headwinds.

In recent weeks, it has achieved successful practical completion on two major schemes in Belfast and Cardiff, and it has also made further progress on its building safety rectification obligations with four projects currently on site of which two buildings are expected to be completed in the current financial year.

The firm added that its provision will continue to be kept under review, reflecting ongoing building investigations and discussions with owners and supply chain, remaining focused on active cash management with year-end net cash anticipated to be ahead of the £61m announced at the end of H1.

It concluded tat with a “robust balance sheet”, it is well positioned to capitalise of the “long-term fundamentals” of its target sectors as market conditions improve.

---