Watkin Jones has seen its profit before tax fall by 94% year-on-year to £200,000 in the first half of its financial year, after continuing to operate in a "volatile" market.

In the six months to 31 March, the housebuilder’s revenue dropped by 26% year-on-year to £129.2m, while its operating profit totalled £400,000, after reaching £4m in the same period in 2024.

Waktin Jones stated that in this period, it has signed two new development partnerships for schemes in Southwark and St Helens, while also securing a new development site, subject to planning.

The firm said its board is currently prioritising the maintenance of financial flexibility during this "period of market disruption".

As a result, Watkin Jones is not declaring an interim dividend for this period.

Chief executive officer at Watkin Jones, Alex Pease, said: "I am pleased to report that trading in the first half was in line with our expectations, despite the continuing challenging market backdrop, as a result of our focus on operational delivery, cost management and cash generation.

"Our in-build schemes continue to trade in line with our previous guidance, and the two new development partnerships secured in the period demonstrate our ability to be proactive and innovative in deploying our market-leading skills and experience in constructing and refurbishing residential for rent real estate."

Looking ahead, the firm stated that while the external market remains challenging, it will continue to focus on factors within its control.

This includes successfully delivering its in-build projects, carefully managing its costs and cash, and broadening its revenue base with new sources of income.

Watkin Jones added that as the UK economic sentiment recovers, transactional liquidity should improve.

Pease added: "We continue to actively market and engage with investors on our development opportunities which are attracting interest, supported by the attractive fundamentals of the PBSA and BTR sectors in which we operate. Whilst transactional activity remains slow and subject to a continuing volatile market backdrop, we are focused on ensuring that the group remains in the best position to exploit opportunities as conditions improve."

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