Watkin Jones has released a trading update and revealed it plans to install heat pumps on all its new developments from 2023 as part of its carbon reducing commitments.
The Bangor based developer said its development capability, combined with favourable market dynamics and capital light business model enabled it to deliver a strong operational and financial performance.
Bosses also outlined new targets for the Group’s ESG (Environmental, Social, and Governance) strategy - focused on three key pillars of "future people, future places and future planet".
This included the installation of heat pumps in all new developments by 2023.
Financial highlights
• Operating profit for the year is anticipated to be in line with expectations.
• £430 million forecast revenue, which is slightly below expectations, but with a stronger gross margin, reflecting the timing of land sales either side of the year end.
• £125 million net cash at the end of the year, c. 50% above expectations.
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Operational highlights
• All 5 BtR schemes (1,041 apartments) and 7 PBSA schemes (3,192 beds) scheduled for delivery in 2021 completed and handed over.
• Development works on track across 13 sites in build.
Homes
• Residential sales of 79 homes in 2021.
• Affordable homes pilot on track – planning consents secured for 296 homes on sites in Crewe and Llay, Wrexham and forward sales of 182 homes agreed.
Carbon reducing commitments
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• Net zero Scope 1 and 2 and a meaningful reduction in Scope 3 emissions by 2030.
• A requirement that all our suppliers have in place an ISO 14001 accredited environmental management system by 2025.
• Installation of heat pumps in all new developments by 2023.
On the results, Richard Simpson, chief executive officer of Watkin Jones, said: “It’s been a year of good progress for Watkin Jones. Our end-to-end development capability, combined with favourable market dynamics and our capital light business model, has enabled us to deliver a strong operational and financial performance.
"During the year, we continued to enhance the future value of our BtR and PBSA pipeline and reinforce our reputation with institutional investors as the 海角视频’s leading residential for rent developer.
This, together with the ongoing re-focusing of our homes business into the affordable housing market, provides a robust platform for sustained earnings growth.”
On its carbon reducing commitment, he added: "Reducing the carbon footprint and prioritising WJ’s ESG credentials are a key priority and we hope the targets launched today demonstrate the commitment we are making to building a more sustainable future for all of our stakeholders.”
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