Watkin Jones has reported an £8.7m pre-tax loss for the year to September after another round of impairments and additional building safety costs, but management is signalling a stronger outlook from 2026. Group revenue fell 23% to £280m as legacy schemes from three to four years ago worked through at tighter margins, while a £7.1m impairment on two assets and a £5m top-up to building safety provisions pushed statutory results into the red.
Chief executive Alex Pease said the group’s reset strategy is now gaining traction, with a more agile approach to deal structuring and a sharper focus on construction delivery underpinning performance in a market still short of liquidity. Four projects reached practical completion on or ahead of programme, and the firm reports that all live schemes are tracking materially to plan, helping to stabilise delivery risk on site.
Over the year Watkin Jones secured three development partnerships and progressed a flagship 784-bed PBSA joint venture in Glasgow, underlining a pivot towards more flexible funding and risk-sharing models. The developer also advanced a conditional forward sale on a 484-bed Bristol student scheme and a new 294-unit aparthotel in Wimbledon, the latter expected to generate around £40m of future revenue.
Looking ahead, the group enters 2026 with £340m of forward-sold revenue and a wider £2bn pipeline, giving greater visibility on workload and cash flow. Investor sentiment in purpose-built student accommodation and build-to-rent is reported to be improving, with chronic undersupply in both sectors expected to support demand and pricing as the firm targets a more stable earnings profile beyond the current financial year.
