Watkin Jones has seen its revenue drop by 12% year-on-year to £362.4m, with the house developer’s chief executive officer describing the firm’s performance as "resilient".

The firm said the result was delivered predominately from "previously sold developments on site", supported by two further developments sold in the year and a "successful first year" of its refresh offering.

Despite the drop in revenue, the firm saw a recovery in its profit before tax, increasing from a loss of £2.9m in the 2023 financial year to a profit of £9.2m in the year to 30 September 2024.

Furthermore, its operating profit increased from £200,000 to £10.6m in the same period.

Chief executive officer at Watkin Jones, Alex Pease, said: "The group produced a resilient operational performance during FY24, in what remains a difficult investment market. The slow pace of interest rate cuts and timing of the General Election meant that, whilst investor sentiment remained positive, transactional activity has not improved as quickly as expected.

"We responded by focusing on the factors within our control: successfully delivering our in-build projects and carefully managing our costs. We have also continued to broaden our revenue base, opening up new sources of income through our refresh and development partnership initiatives."

Looking ahead, Watkin Jones said that with the "investment market gradually showing signs of recovery", it expects its medium term outlook to remain strong with "excellent sector fundamentals continuing to drive investor sentiment".

In the near term, the firm stated that it will continue to “focus on the factors” within its control, with £300m of "contractually secure forward sold revenue" as of 30 September, with a total pipeline of £2bn.

Pease concluded: "While the investment market has continued to be challenging, the sectors in which we operate remain attractive. PBSA is still undersupplied and BTR offers a key solution to the UK's housing shortage, helping to accelerate the delivery of new homes and fostering communities.

"As a market-leading developer with a strong track record, Watkin Jones is an ideal conduit for institutional capital. Looking to the medium term, we believe that there is an excellent opportunity in the sector and that we are well placed to take advantage of that."

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