In its half-year results for the six months ended 31st March 2025, revenue was down to £129.2m from £175.1m in the first half of the previous year.

Operating profit for the period was £0.4m, down from £4m in HY24, with gross margins in line with previous guidance despite what the company calls “continuing limited transactional liquidity” in the market.

Cash management efforts led to an increase in period-end gross and net cash balances to £86.8m and £73.4m, respectively, compared to £67.1m and £44m in the prior year.

Watkins Jones has secured two new development partnerships for schemes in Southwark and St Helens and has submitted planning for 722 PBSA and co-living beds across two projects.

According to the company, the board is prioritising the maintenance of financial flexibility during a “period of market disruption”, and is not declaring an interim dividend.

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Alex Pease, CEO at Watkin Jones, 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.

“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.

“While transactional activity remains slow and subject to a continuing volatile market backdrop, we are encouraged by signs of improving sentiment and are focussed on ensuring that the group remains in the best position to exploit opportunities as conditions improve.”