Watkin Jones (LSE:WJG) expects adjusted operating profit for FY26 to be broadly in line with the level reported in the first half after indicating that some anticipated transactions are now likely to complete beyond the financial year-end.

The residential developer said it has continued to focus on cash management and operational delivery during the year against a backdrop of geopolitical uncertainty and reduced transactional liquidity.

Despite the expected timing shift for some transactions, Watkin Jones forecasts that year-end net cash will exceed the £61 million reported at the half-year stage.

Build-to-rent projects deliver 1,345 homes

Watkin Jones recently completed two build-to-rent developments in Belfast and Cardiff, delivering a combined 1,345 rental units.

The company said aggregate margins from the two schemes were in line with its previous guidance.

Investor engagement concerning a small number of additional transactions remains ongoing, although the Board now expects some of these deals to move beyond the FY26 year-end.

As a result, adjusted operating profit for the full year is expected to be at a similar level to that achieved during the first half.

Building safety work remains a priority

Building safety rectification continues to form part of the group’s operational programme, with four projects currently on site.

Watkin Jones expects work on two buildings to be completed during FY26.

The company said its provisions will continue to be reviewed as investigations progress and discussions with building owners and supply-chain partners continue.

Year-end net cash expected above £61 million

Watkin Jones expects to finish FY26 with net cash above the £61 million position reported at the half-year, despite the delay to certain transactions.

The group continues to develop its business model with the aim of diversifying revenue across its activities.

Management said it believes the company’s balance sheet leaves it positioned to respond to opportunities in its target rental housing markets as conditions develop, while citing the long-term fundamentals of those sectors.

Watkin Jones focuses on residential rental developments

Watkin Jones plc is a UK-based developer and manager of residential properties, with activities including large-scale build-to-rent schemes in urban locations.

The group is seeking to diversify its sources of revenue across development and management activities while maintaining a focus on cash and cost management.

Its operations also include building safety remediation work associated with residential properties in the UK.