HAL F YE AR RE SUL T S T o 31 Mar c h 2020 Re silie nt Pe - - PowerPoint PPT Presentation
HAL F YE AR RE SUL T S T o 31 Mar c h 2020 Re silie nt Pe r for manc e 19 May 2020 Ag e nda UKs le a ding de ve lope r a nd ma na g e r of re side ntia l for re nt Hig hlig hts & Ove rvie w HY 2020 Pe rfo rma nc e
HAL F YE AR RE SUL T S T
c h 2020
Re silie nt Pe r for manc e
19 May 2020
UK’s le a ding de ve lope r a nd ma na g e r of re side ntia l for re nt
D-19
Cre a ting the F uture of L iving
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Kelaty House, London
UK’s le a ding de ve lope r a nd ma na g e r of re side ntia l for re nt
D-19
mpa c t a nd e xte nt o f disruptio n fro m COVI D-19 no t ye t q ua ntifia b le
He a lth & Sa fe ty a nd c a sh c o nse rva tio n
D-19 impa c t c a n b e q ua ntifie d. I nte ntio n to re insta te b o th a t the a ppro pria te time .
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Cre a ting the F uture of L iving
Y20 & F Y21
Y20 pe rfo rma nc e princ ipa lly de pe nde nt o n de live ry o f o ur PBSA pipe line due this ye a r, le ve l o f pro g re ss with F Y21 de live rie s & fo rwa rd sa le a c tivity in H2 F Y20
de spite sho rt te rm he a dwinds
he re will b e a ttra c tive o ppo rtunitie s to b uild future multi-ye a r de live ry pipe line in due c o urse
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la rg e ly pre COVI D-19 disruptio n
b usine ss a re a s
inc re a sing c o ntrib utio n fro m BtR
nde rlying PBT g ro wth o f 6.4%
PS inc re a se d b y 8.6% to 8.44 pps
re ne we d fo r 5 ye a rs, with fa c ility limit inc re a se d to £100m. U ndra wn he a dro o m o f £71.1m
Underly rlying R Result lts H1 2 2020 020 H1 2 2019 019 (restat ated d 1) Move Movement Reve venue £185.7 million £159.1 million +16.7% Gross pr ss profit £41.9 million £38.8 million +8.0% Opera rating p profi rofit 2 £29.2 million £27.3 million +7.1% Profi rofit b befor fore t tax 2 £26.6 million £25.0 million +6.4% EBITDA A 2 £34.2 million £32.1 million +6.5% Basic e earn rnings p per s r sha hare re 2 8.44 pence 7.77 pence +8.6% Dividend p per s r sha hare re Nil pence 2.75 pence Gross c ss cash sh £72.4 million £57.9 million Net c cash h 3 £37.5 million £18.3 million
No te s 1. T he H1 2019 re sults ha ve b e e n re sta te d to a c c o unt fo r IF RS16, whic h a pplie s to the Gro up fo r the first time fo r F Y20. 2. T he se me a sure s e xc lude e xc e ptio na l ite ms. No e xc e ptio na l ite ms a pply to H1 2020, b ut the H1 2019 fig ure s a re b e fo re a n e xc e ptio na l c ha rg e o f £2.6 millio n. 3. Ne t c a sh is sta te d b e fo re de duc ting IF RS16 o pe ra ting le a se lia b ilitie s
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T he Gro up’ s tra ding re ma ine d stro ng thro ug h the first ha lf o f the ye a r All b usine ss se g me nts pe rfo rme d we ll, de live ring o n the ir o pe ra tio na l o b je c tive s No ta b le hig hlig hts:
F Y21
de ve lo pme nt a t K e la ty Ho use , We mb le y b y 100 b e ds
Ba th (323 a pa rtme nts)
T he Gro up’ s BtR pipe line sta nds a t o ve r 2,600 a pa rtme nts, a c ro ss 10 site s, o f whic h five de ve lo pme nts (1,012 a pa rtme nts) a re fo rwa rd so ld. T he Gro up’ s PBSA pipe line c o mprise s o ve r 7,200 be ds, a c ro ss 19 site s, o f whic h 13 site s (c .5,600 b e ds) a re fo rwa rd so ld. Ove ra ll, H1 pe rfo rma nc e de live ring we ll a g a inst g ro wth pla ns – c re a ting the future
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H1 2020 Re ve nue s H1 2019 Re ve nue s
PBSA, £120.8m (65%) BtR, £36.5m (20%) Residential, £24.3m (13%) Accommodation mgmt, £4.1m (2%) PBSA, £128.8m (81%) BtR, £8.8m (6%) Residential, £17.4m (11%) Accommodation mgmt, £3.9m (2%)
BtR
de ve lo pme nts fo r de live ry in F Y20 a nd F Y21
PBSA
F Y20 (2,609 b e ds) c o mpa re d to F Y19 (2,723 b e ds)
Ac c ommodation manage me nt
a t the sta rt o f F Y20 (17,721 units), c o mpa re d to the sta rt o f F Y19
Re side ntial
a pa rtme nts a t T ra ffo rd Stre e t, Che ste r
a g re e me nt fo r the de live ry in F Y21 o f 75 a pa rtme nts a t Ma rshg a te , Stra tfo rd
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H1 2020 Gro ss Pro fit H1 2019 Gro ss Pro fit
PBSA, £29.2m (69%) GM 24.1% BtR, £6.0m (14%) GM 16.3% Residential, £4.4m (11%) GM 18.2% Accommodation mgmt, £2.6m (6%) GM 61.9% PBSA, £31.8m (82%) GM 24.7% BtR, £1.9m (5%) GM 21.7% Residential, £2.9m (7%) GM 16.7% Accommodation mgmt, £2.4m (6%) GM 62.6%
BtR
pre vio us g uida nc e o f 15%
PBSA
Ac c ommodation manage me nt
prio r ha lf ye a r
Re side ntial
2019
a pa rtme nt sa le s a t Stra tfo rd a nd Ba th.
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Imple me nta tion
Y20
Sta te me nt of fina nc ia l position
wo histo ric a lly pro fita b le lo ng te rm PBSA le a se s a c c o unt fo r £83.3m o f this lia b ility
E a r ning s impa c t
a nd fina nc e c o sts inc re a se d b y £2.2m
fo r H1 2020 re duc e d b y £0.8m (H1 2019: £1.1m) a nd E BIT DA inc re a se d b y £5.6m (H1 2019: £5.2m)
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Dunc an Ho use , Stratfo rd
mple me nte d re mo te wo rking a nd e nha nc e d he a lth a nd sa fe ty pro to c o ls fo r e mplo ye e s, te na nts a nd sta ke ho lde rs.
do wn site s whilst risk a sse ssme nts we re c a rrie d o ut.
ng la nd, Wa le s a nd No rthe rn I re la nd a t c .75% o f pre COVI D-19 disruptio n re so urc ing le ve ls, with site pro g re ss b e ing ma inta ine d.
the Sc o ttish Go ve rnme nt’ s dire c tio n to c e a se a ll c o nstruc tio n wo rks fo r no n e sse ntia l b uilding s.
WJ’s F ir st Re sponse pla n built a r
s of he a lth a nd sa fe ty a nd c a sh c onse r va tion
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mo de l
Gro up
e mplo ye e s - c .185 e mplo ye e s (43% F T E ). E ve ry e mplo ye e pa id 80% o f the ir sa la ry
furlo ug h sc he me
re duc e d b y 20% a nd the a nnua l pa y inc re a se ha s b e e n po stpo ne d
a lso ma de a va ila b le ro o ms o ve r the summe r fo r disrupte d o nwa rd tra ve l pla ns. Co st to the Gro up is c .£1m.
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Strong liquidity position
with £71.1m he a dro o m
F
de ve lo pme nts pro g re ss
c o mple tio n o f sc he me s
Ca sh c onse rva tion
Ca sh fore c a sting
lo c kdo wn pe rio ds o f va rying le ng ths up to 12 mo nths sho w a re silie nt po sitio n
g e ne ra tio n
in a mo nthly c a sh b urn o f c . £2.5m
15 Ne t mo nthly c a sh inc o me e xc lude s fina l pa yme nts due o n c o mple tio n o f de ve lo pme nts PBSA re nta l c o sts a ssume 50% stude nt re nta l inc o me
uture se c ure d pipe line o f c .£690m illustra tive re ve nue b a se d o n pre COVID-19 d isruptio n va lue s
Y20 De live rie s – 100% fo rwa rd so ld – 6 x ta rg e ting d e live ry b y c a le nd a r Q3 & 1 x ta rg e ting d e live ry Q4
Y20 pe rfo rma nc e d e pe nd e nt o n in ye a r d e live rie s, pro g re ss with F Y21 d e live rie s & fo rwa rd sa le a c tivity in H2
re sh pro pe rty ma na g e me nt g ive s insig ht to BtR se c to r re silie nc e a nd PBSA se c to r sho rt te rm c ha lle ng e s
‘ Cre a ting the future o f living ’
WJ BtR Pipe line De live ry 1467 159 782 71 184 1467
200 400 600 800 1000 1200 1400 1600 1800 2000 FY20 FY21 FY22-24
Forward Sold To Sell with Planning Secured, requires planning
# b e ds
WJ PBSA Pipe line De live ry
# b e ds
4101
16
2609 2730 259 462 1178
500 1000 1500 2000 2500 3000 3500 FY20 FY21 FY22+
Forward Sold To Sell with Planning Secured, requires planning
Granary Studio s, Che ste r
his g uida nc e c o ve re d hig h pre ssure la mina te (‘ HPL ’ ) c la dding , whic h ha s b e e n unde r mo re re c e nt sc rutiny.
he Gro up is ta king re spo nsib le , pro -a c tive ste ps to e nsure the sa fe ty o f te na nts a nd is wo rking with the o wne rs o f 8 o f its pre vio usly de ve lo pe d sc he me s to re me dia te pre do mina ntly HPL c la dding .
he c o st to the Gro up o f unde rta king the re me dia l wo rks, fo r whic h the Gro up do e s no t a c c e pt lia b ility, is c urre ntly de pe nde nt o n the o utc o me o f o ng o ing disc ussio ns with the pro pe rty o wne rs.
t is c urre ntly e xpe c te d to b e in the ra ng e o f £12m - £15m to b e inc urre d o ve r the ne xt two to thre e ye a rs, in line with pre vio us g uida nc e .
the o utc o me o f tho se disc ussio ns ha s b e e n e sta b lishe d.
due c o urse . T his will ta ke time a nd the e xte nt o f a ny re c o ve ry is c urre ntly unc e rta in.
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Kyle Stre e t, Glasg o w
De fining what is impor
ta nt to WJ
Our people Health & Safety Supply chain Environment Communities Ethical business
mplo ye e s
nstitutio na l c lie nts
nde pe nde nt a udit & a ssura nc e Me e ting the hig he st sta nda r ds Stake ho lde r E ng ag e me nt: Prio rity are as:
Approach
E SG Risk Ma na g e me nt
SG Risk o ve rsig ht pro vid e d b y WJ Bo a rd
SG fo c us o r tilt to the m
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Progress Plan
E stablishe d Re sponsible Wor king Gr
Sc oping of c ohe r e nt sustainability pr
amme
nte ntio n to a nno unc e susta ina b ility stra te g y a t F Y
0 re po rta b le e nviro nme nta l inc id e nts HY1 Use g re e ne r ma te ria ls & timb e r fro m susta ina b le so urc e s L
initia tive s; Co mb ine d He a ting & Po we r (CHP), pho to vo lta ic c e lls & a ir so urc e he a t pumps Dive rt >90% o f skip wa ste fro m la nd fill & tra c k wa ste so urc e s
Soc ia l
Cla d d ing wo rks pa rtne rship Me nta l he a lth a wa re ne ss initia tive s a nd tra ine d me nta l he a lth first a id e rs 24% re d uc tio n in
a c c id e nt/ inc id e nt ra te Yo Y
E nvironme nta l
0 e thic a l o r c o mplia nc e b re a c he s d uring HY1 Yo ung Mind s & Jig sa w c ha rita b le suppo rt Whistle b lo wing Bo a rd e va lua tio n IT Co ntinuity
Gove rna nc e
Stud e nt te na nc y e a rly re le a se
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Cranfie ld Unive rsity, Be dfo rd
F irst on c a mpus re de ve lopme nt proje c t with Cra nfie ld Unive rsity
D-19 tra nsa c tio n
n line with ta rg e t g ro ss ma rg in
Wide r g rowth opportunitie s throug h unive rsity pa rtne rships
g ro wth o ppo rtunity
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Ho llis Cro ft, She ffie ld
UK’s le a ding de ve lope r a nd ma na g e r of re side ntia l for re nt
D-19
D-19 disruptio n ne e ds c a re ful ma na g e me nt
mpa c t a nd e xte nt o f disruptio n fro m COVI D-19 no t ye t q ua ntifia b le
He a lth & Sa fe ty a nd c a sh c o nse rva tio n
he re will b e a ttra c tive o ppo rtunitie s to b uild future multi-ye a r de live ry pipe line in due c o urse
Cre a ting the F uture of L iving
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T his pre se nta tio n ha s b e e n pre pa re d b y o r o n b e ha lf o f Wa tkin Jo ne s plc (“Wa tkin Jo ne s”). T he info rma tio n se t o ut in this pre se nta tio n is no t inte nde d to fo rm the b a sis o f a ny c o ntra c t. By a tte nding (whe the r in pe rso n, b y te le pho ne o r we b c a st) this pre se nta tio n o r b y re a ding the pre se nta tio n slide s, yo u a g re e to the c o nditio ns se t o ut b e lo w. T his pre se nta tio n (inc luding a ny o ra l b rie fing a nd a ny q ue stio n-a nd-a nswe r se ssio n in c o nne c tio n with it) is fo r info rma tio n o nly. T he pre se nta tio n is no t inte nde d to , a nd do e s no t c o nstitute , re pre se nt o r fo rm pa rt o f a ny o ffe r, invita tio n, induc e me nt o r so lic ita tio n o f a ny o ffe r to purc ha se , o the rwise a c q uire , sub sc rib e fo r, se ll o r o the r wise dispo se o f, a ny se c uritie s
re c o mme nda tio n re g a rding a ny se c uritie s. Pa st pe rfo rma nc e , inc luding the pric e a t whic h Wa tkin Jo ne s’ se c uritie s ha ve b e e n pre vio usly b o ug ht o r so ld a nd the pa st yie ld o n Wa tkin Jo ne s' se c uritie s, c a nno t b e re lie d o n a s a g uide to future pe rfo rma nc e . No thing he re in sho uld b e c o nstrue d a s fina nc ia l, le g a l, ta x, a c c o unting , a c tua ria l o r o the r spe c ia list a dvic e . T he re le a se , pre se nta tio n, pub lic a tio n o r distrib utio n o f this pre se nta tio n in jurisdic tio ns o the r tha n the Unite d K ing do m ma y b e re stric te d b y la w a nd the re fo re a ny pe rso ns who a re sub je c t to the la ws o f a ny jurisdic tio n o the r tha n the Unite d K ing do m sho uld info rm the mse lve s a b o ut a nd o b se rve a ny a pplic a b le re q uire me nts. It is yo ur re spo nsib ility to sa tisfy yo urse lf a s to the full o b se rva nc e o f a ny re le va nt laws a nd re g ula to ry re q uire me nts. Any fa ilure to c o mply with a pplic a b le re q uire me nts ma y c o nstitute a vio la tio n o f the laws a nd/ o r re g ula tio ns o f a ny suc h jurisdic tio n. I n a dditio n, in the Unite d K ing do m, this pre se nta tio n is b e ing ma de a va ila b le o nly to pe rso ns who fa ll within the e xe mptio ns c o nta ine d in Artic le 19 a nd Artic le 49 o f the F ina nc ia l Se rvic e s a nd Ma rke ts Ac t 2000 (F ina nc ia l Pro mo tio n) Orde r 2005 (the “Orde r”). T his pre se nta tio n is no t inte nde d to b e a va ila b le to , a nd must no t b e re lie d upo n, b y a ny o the r pe rso n. No thing in this pre se nta tio n c o nstitute s inve stme nt a dvic e a nd a ny re c o mme nda tio ns tha t ma y b e c o nta ine d he re in ha ve no t b e e n b a se d upo n a c o nside ra tio n o f the inve stme nt o b je c tive s, fina nc ia l situa tio n o r pa rtic ula r ne e ds o f a ny spe c ific re c ipie nt. No ne o f Wa tkin Jo ne s, its sha re ho lde rs, sub sidia rie s, a ffilia te s, a sso c ia te s, o r the ir re spe c tive dire c to rs, o ffic e rs, pa rtne rs, e mplo ye e s, re pre se nta tive s a nd a dvise rs (the “Re le va nt Pa rtie s”) ma ke s a ny re pre se nta tio n o r wa rra nty, e xpre ss o r implie d, a s to the a c c ura c y o r c o mple te ne ss o f the info rma tio n c o nta ine d in this pre se nta tio n, o r o the r wise ma de a va ila b le , no r a s to the re a so na b le ne ss o f a ny a ssumptio n c o nta ine d in suc h info rma tio n, a nd a ny lia b ility the re fo r (inc luding in re spe c t o f dire c t, indire c t, c o nse q ue ntia l lo ss o r da ma g e ) is e xpre ssly disc la ime d. No info rma tio n c o nta ine d he re in o r o the r wise ma de a va ila b le is, o r sha ll b e re lie d upo n a s, a pro mise , wa rra nty o r re pre se nta tio n, whe the r a s to the pa st o r the future a nd no re lia nc e , in who le o r in pa rt, sho uld b e pla c e d o n the fa irne ss, a c c ura c y, c o mple te ne ss o r c o rre c tne ss o f suc h info rma tio n. Unle ss e xpre ssly sta te d o the rwise , no sta te me nt in this pre se nta tio n is inte nde d a s a pro fit fo re c a st o r e stima te fo r a ny pe rio d a nd no sta te me nt in this pre se nta tio n sho uld b e inte rpre te d to me a n tha t c a sh flo w fro m o pe ra tio ns, fre e c a sh flo w, e a rning s o r e a rning s pe r sha re fo r Wa tkin Jo ne s fo r the c urre nt o r future fina nc ia l ye a rs wo uld ne c e ssa rily ma tc h o r e xc e e d the histo ric a l pub lishe d c a sh flo w fro m o pe ra tio ns, fre e c a sh flo w, e a rning s o r e a rning s pe r sha re o f Wa tkin Jo ne s. Sta te me nts o f e stima te d c o st sa ving s re la te to future a c tio ns a nd c irc umsta nc e s whic h, b y the ir na ture , invo lve risks, unc e rta intie s a nd c o nting e nc ie s. As a re sult, a ny c o st sa ving s re fe rre d to ma y no t b e a c hie ve d, ma y b e a c hie ve d la te r o r so o ne r tha n e stima te d, o r tho se a c hie ve d c o uld b e ma te ria lly diffe re nt fro m tho se e stima te d. By a tte nding the pre se nta tio n to whic h this do c ume nt re la te s a nd/ o r b y a c c e pting this do c ume nt yo u will b e ta ke n to ha ve re pre se nte d, wa rra nte d a nd unde rta ke n tha t yo u ha ve re a d a nd a g re e to c o mply with the c o nte nts o f this no tic e . T his pre se nta tio n c o nta ins fo rwa rd-lo o king sta te me nts c o nc e rning the fina nc ia l c o nditio n, re sults o f o pe ra tio ns a nd b usine sse s o f Wa tkin Jo ne s. All sta te me nts o the r tha n sta te me nts o f histo ric a l fa c t a re , o r ma y b e de e me d to b e , fo r wa rd-lo o king sta te me nts. F
tha t a re b a se d o n ma na g e me nt’ s c urre nt e xpe c ta tio ns a nd a ssumptio ns a nd invo lve kno wn a nd unkno wn risks a nd unc e rta intie s tha t c o uld c a use a c tua l re sults, pe rfo rma nc e o r e ve nts to diffe r ma te ria lly fro m tho se e xpre sse d o r implie d in the se sta te me nts. F
e xpo sure o f Wa tkin Jo ne s to ma rke t risks a nd sta te me nts e xpre ssing ma na g e me nt’ s e xpe c ta tio ns, b e lie fs, e stima te s, fo re c a sts, pro je c tio ns a nd a ssumptio ns inc luding a s to future po te ntia l c o st sa ving s, syne rg ie s, e a rning s, c a sh flo w, re turn o n a ve ra g e c a pita l e mplo ye d, pro duc tio n a nd pro spe c ts. T he se fo rwa rd-lo o king sta te me nts a re ide ntifie d b y the ir use o f te rms a nd phra se s suc h a s “a ntic ipa te ”, “b e lie ve ”, “c o uld”, “e stima te ”, “e xpe c t”, “inte nd”, “ma y”, “pla n”, “o b je c tive s”, “o utlo o k”, “pro b a b ly”, “pro je c t”, “will”, “se e k”, “ta rg e t”, “risks”, “g o a ls”, “sho uld” a nd simila r te rms a nd phra se s. T he re a re a numb e r o f fa c to rs tha t c o uld a ffe c t the future o pe ra tio ns o f Wa tkin Jo ne s a nd c o uld c a use tho se re sults to diffe r ma te ria lly fro m tho se e xpre sse d in the fo r wa rd-lo o king sta te me nts inc lude d in this pre se nta tio n, inc luding (witho ut limita tio n): (a ) c ha ng e s in de ma nd fo r Wa tkin Jo ne s' pro duc ts; (b ) c urre nc y fluc tua tio ns; (c ) lo ss o f ma rke t sha re a nd industry c o mpe titio n; (d) risks a sso c ia te d with the ide ntific a tio n o f suita b le po te ntia l a c q uisitio n pro pe rtie s a nd ta rg e ts, a nd suc c e ssful ne g o tia tio n a nd c o mple tio n o f suc h tra nsa c tio ns; a nd (e ) c ha ng e s in tra ding c o nditio ns. All fo r wa rd-lo o king sta te me nts c o nta ine d in this pre se nta tio n a re e xpre ssly q ua lifie d in the ir e ntire ty b y the c a utio na ry sta te me nts c o nta ine d o r re fe rre d to in this se c tio n. Re a de rs sho uld no t pla c e undue re lia nc e o n fo r wa rd-lo o king sta te me nts. E a c h fo r wa rd- lo o king sta te me nt spe a ks o nly a s a t the spe c ifie d da te o f the re le va nt do c ume nt within whic h the sta te me nt is c o nta ine d. Wa tkin Jo ne s do e s no t unde rta ke a ny o b lig a tio n to pub lic ly upda te o r re vise a ny fo rwa rd-lo o king sta te me nt a s a re sult o f ne w info rma tio n, future e ve nts o r o the r info rma tio n. I n lig ht o f the se risks, re sults c o uld diffe r ma te ria lly fro m tho se sta te d, implie d o r infe rre d fro m the fo rwa rd-lo o king sta te me nts c o nta ine d in this pre se nta tio n. Ce rta in fina nc ia l da ta ha s b e e n ro unde d. As a re sult o f this ro unding , the to ta ls o f da ta pre se nte d in this pre se nta tio n ma y va ry slig htly fro m the a c tua l a rithme tic to ta ls o f suc h da ta .
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