WATKIN JONE N JONES PL PLC HALF Y HA YEAR RE R RESU SULTS To - - PowerPoint PPT Presentation

WATKIN JONE N JONES PL PLC

HA HALF Y YEAR RE R RESU SULTS

To 31 1 Ma March 20 2018 8

22nd May 2018

Mar ark W Wat atkin Jon

• nes

es – CEO Philip ilip B Byrom – CFO FO

FINANCIAL IAL H HIGHLIG IGHTS

2

Bagot

• t S

Street reet, Birm rmingh gham 492 Beds | Due to complete August 2018

FINAN ANCIAL AL H HIGHLIGHTS

3

• Revenue up by 18.4% to £158.3M (H1 FY17 £133.7M) driven by student accommodation

developments.

• Gross margin maintained at 21.8% (H1 FY17 21.8%).
• Operating profit up by 22.7% to £23.8M (H1 FY17 £19.4M).
• EBITDA up by 11.9% to £24.5M (H1 FY17 £21.9M).
• Profit before tax up by 11.9% to £23.6M (H1 FY17 £21.1M).
• Basic EPS up by 12.5% to 7.53 pence per share (H1 FY17 6.69 pence per share).
• Net cash up by 328% at 31st March 2018 to £38.4M (H1 FY17 £11.7M).
• Interim dividend up by 12.3% to 2.47 pence per share (H1 FY17 2.2 pence per share) in line with our

progressive dividend policy.

RES ESULTS S SUMMARY

4

BUSI USINESS H S HIGHLIGHTS MAINTAINING V VISI SIBILITY

Bridge Street, Cardiff 477 Beds | Due to complete August 2018

BUSINE INESS H HIGHLIG LIGHTS – MAINT INTAIN INING V ING VISIBILIT ILITY

5

• Improved Gross Margin to 65.3% (H1 FY17 63.2%).
• 16,185 student beds under management at 31st March 2018.
• 532 build to rent units under management at 31st March 2018.

ACC CCOMMODATION MANAGE GEMENT

• Total development pipeline of over 10,300 beds across 25 developments.
• 15 developments (6,090 beds) pre-sold to Investors.
• 8,752 beds with planning consent.
• 21 developments with planning consent.

STUDENT ENT ACCOMMO MMODATION DEVEL ELOPMENT ENT PIPELINE

• Development Agreement entered into to deliver 315 apartments for M&G at Reading.
• Planning consents secured for 312 apartments in the period.
• The Group expects to deliver over 1,500 build to rent apartments in the next five years.

BUILD T TO RENT RENT DEVEL ELOPMENT ENT PIPELINE

• Richard Simpson, former Group Property Director of Unite plc, appointed as CEO to succeed Mark

Watkin Jones.

SUCCESSION

6

St Mungo’s, s, G Glasg sgow w 349 Beds | Due for completion August 2018

AMBIT ITIO ION & N & STRATEG EGY

AM AMBI BITION & ON & STRATEGY

7

• Continue sustainable growth of

earnings in the core student property development business.

• Maintain a strong forward sold

position to limit risk.

• Maintain our position as the

partner of choice for our existing clients and add new clients.

• Continue growth of Fresh Student

Living to increase recurring management fee income.

• Growth of Five Nine Living to add

to recurring management fee income.

• Continue to grow margin.
• Continue to release cash from

inventory.

• Develop out land bank.
• Acquire strategic sites.
• Leverage PBSA expertise to become

a leader in this sector.

• Enhance growth and visibility, whilst

retaining funding model.

• Exploit opportunities to enhance

supply chain efficiency through scheduling.

• Look to accelerate overall opportunity

where possible.

• Deliver 1,500 apartments in next 5

years.

8

DEV EVELOPMENT PI PIPELI PELINE STUDENT A T ACCOMM MMOD ODATIO ION

Midland Road, Bath 94 Student Beds & 14 Keyworker Studios | Due for completion August 2018

STUDENT ACCOMMODATION PIPELINE SUMMARY

• Ove

ver 1 r 10,0 ,000 b beds secured and scheduled to be delivered in the next four years across 25 sc scheme mes s and a further 2 sc scheme mes wi s with

• ver 1,

1,00 000 b 0 beds in legals to acquire.

• 7 d

deve velop lopments being marketed for sale.

• FY18

18 – Ten d deve velop lopments ( (3,4 ,415 b beds) f forward s sold

• FY19

19 – Four ( r (2,2 ,245 B Beds) of planned 6 developments (2,72 723 B 3 Beds) forward s sold.

• d. All have planning consent.
• FY20

20 – One (430 Be Beds) s) of planned 7 Developments (c.3000 000 B Beds) forward s sold.

• d. Five have planning consent.
• 15 s

sche hemes and 6,090 b 90 beds pre sold to investors and under construction.

• In

In excess of

• f 5,000 b

beds across 15 sites identified as potential

• pportunities and being pursued.

PIPELINE PROVIDES EARNINGS VISIBILITY

Student accommodation pipeline locations

500 1000 1500 2000 2500 3000 3500 4000 FY18 FY19 FY20 FY21 Number of Beds - Unsecured in Legals Sites Number of Beds - Secured Sites Number of Beds - Under Offer/In Legals Number of Beds - Forward Sold

Number of Beds

CURRENT PIPELINE OF STUDENT PROJECTS UNDERPINS VISIBILITY

9

10

STUDE DENT A ACCO CCOMMODATION MARK RKET T Occupier De Dema mand

Bailey Fields, Sheffield 543 Beds | Due for completion July 2018

PURP RPOSE B BUILT STUDENT PROP OPERT RTY MARKE RKET OCCU CCUPIER D DEMAND

Occupier D Demand

• Student numbers continue to rise.
• >1.79 million full time higher education students in UK.
• 404,000 (22%) students in the UK are from outside of the UK.
• Flight to improved quality continues.

Bed ed N Numbers i in the UK e UK

• 602,000 PBSA beds in the UK (C&W – October 2017) with an

estimated 219,000 PBSA beds in the UK operated by the Private Sector (GVA – Spring 2018).

• The balance in the UK is operated by the Universities of which it is estimated that 75% was built pre 1999 and is

no longer fit for purpose or meeting occupier expectation. The O Offer

• Typical layout allows occupancy with chosen flat mates.
• All inclusive rents.
• Safe/secure with on site management.
• Enhanced services – gyms, common rooms, laundry.

11

STUDE DENT A ACCO CCOMMODATION MARK RKET T Investme ment De Dema mand

12

Kyl yle Street, Gla , Glasgow 401 Beds | Due for completion August 2019

PURP URPOSE BUI UILT S T STUD TUDENT PROPERT RTY M Y MARK RKET T IN INVES ESTMENT NT D DEM EMAND ND

13

Purpos

• se B

Built lt S Student A Accommodat ation

• n Investment D

Deman and

• PBSA remains a stable income producing asset.
• Asset Class is now seen as Mature.
• £4.1 billion of stock traded in 2017 (£3.2 billion 2016) with £1.0 billion of stock traded in Q1 2018 and a further

£1.5 billion of stock believed to be under offer.

• Investment sentiment remains strong and investors willing to pay premiums for larger portfolios driven by need to

allocate investment capital and build scale quickly.

• Rental Growth continues.
• Direct Let Yields: 4.25-4.5% Prime London, 4.75-5% Inner London, 5.25- 5.5% Prime Regional, 6% Secondary

Regional.

• Our current development partners include AIG, Arlington, Brookfield (BSRE), CBRE Global, Generation Estates, GSA,

L&G, La Salle IM, M&G, UBS, UPP.

14

DEV EVELOPMENT PI PIPELI PELINE BUIL ILD T TO RE RENT NT

Bath Lane, Leicester 322 Units | Due for commencement 2019

BUILD TO RENT PIPELINE SUMMARY

• 1,597

97 apa partment nts in the pipeline across 8 developme pment nts made up of:-

15

Build to Rent pipeline locations

100 200 300 400 500 600 700 800 FY18 FY19 FY20 FY21 Number of Apartments - Unsecured under negotiation Number of Apartments - Secured Units Number of Apartments - Under Offer / In Legals Number of Apartments - Forward Sold

Number of Beds

DEVELOPMENT PIPELINE OF BUILD TO RENT OPPORTUNITIES Year of Commencement

GROWING MOMENTUM

• 31

315 ap apar artments under a development agreement with M&G at Reading for a 2021 completion.

• 5 develop
• pment sites secured (908 apartments), of

which 3 developments (482 apartments) have planning.

• 2 develop

lopments under negotiation to acquire – target 437 37 apartm tments ts

16

BUIL ILD T TO RE RENT NT OPPORTU RTUNIT ITY

The Gateway, Sheffield 78 Apartments | Completed 2017

BUILD LD TO RENT – AN EMERGING & & UNDERSU SUPPLI LIED ASSE SET CLA LASS SS – OPPORTU RTUNITY TO A ACCELERA RATE TE GRO ROWTH TH T THROU OUGH ESTABL BLISHING A FUND

EMERGING ASSET CLASS

• We believe that BTR market dynamics will mirror PBSA as

sophistication and understanding build – but this takes time.

• Against this backdrop, we are seeking to maximise WJ PLC’s

BTR opportunity without trading away returns or changing our forward funded business model.

• Dedicated source of capital would allow WJ PLC to maintain

momentum in its BTR pipeline whilst the wider market evolves. Dedicated investment vehicle could deliver quicker and bigger benefits to WJ PLC’s BTR strategy:

• Would enable the acceleration of the current BTR pipeline.
• Potential for faster turnover of capital.
• Generate incremental revenue from investment management

activities.

• Creates further opportunities for Fresh Property Group.
• Offers further upside in the form of dividend and capital

appreciation if WJ PLC takes a minority equity stake.

• Would not prevent WJ PLC from pursuing Development

Agreement opportunities as part of its wider BTR strategy.

THE POTENTIAL FUND VEHICLE

• Consideration of a listed vehicle ongoing.
• Opportunity for Investors to gain pure exposure to the

emerging market and invest in the BTR sector.

• Assets identified and under control which

differentiates it from other investment vehicles in the market.

• Externally managed using WJ plc expertise and

governed by a separate independent Board.

• Right of first refusal from Fund over WJ BTR assets.

17

SIGNIFICANT OPPORTUNITY FOR WATKIN JONES PLC

18

BUIL ILD T TO RE RENT NT MARKET KET

Sutton Court Road, Sutton 165 Apartments | Due for completion 2020

BUI UILD LD TO TO RENT T – AN EME MERGI GING & G & UNDERSUPPLIED ASSE SSET C CLASS SS

CONSUMER DEMAND

• Supply of homes cannot keep up with demand due to rising life

expectancy, increase in one person households, divorce and immigration.

• Government targeting 300k new dwellings each year by mid-

2020’s, only 217k delivered in 2016/17. Current UK housing deficit estimated at 1.4M homes.

• Rented housing stock has increased to c.22% (as a proportion of

housing stock) today.

• We have an increasing generation of renters across all lifestyles

with all age groups showing increases in the numbers that rent.

• WJ can leverage its significant experience in delivering Multi

Occupancy Buildings into the BTR Sector.

• Existing WJ Investor relationships – Similar investors and deal

structures to PBSA.

• WJ are recognised as a Tier 1 Developer and Contractor giving

comfort to Institutions over delivery.

• WJ manage 16,000+ Multi Tenanted Residential Units in the PBSA
• sector. Opportunity to replicate this style of management in BTR.
• Year round deliveries improving resource and supply chain

efficiencies.

• UK wide developer with the ability to develop a range of rental

housing typologies from high-rise flats in urban centres to family homes in commuter.

INVESTMENT CASE

• High expectation from investors that the specialist property

sector will grow in market share and portfolio weighting in 2018.

• Knight Frank research shows investment volumes into

specialist property accounted for 27% of the UK commercial property market in 2017 increasing by 40% year on year to reach an unprecedented £17.7B.

• Investment volumes into specialist property are expected to

reach almost £20B in 2018 with 51% of those surveyed identifying BTR as the most attractive to investors in 2018 followed by 18% identifying PBSA.

• 33% of the 2017 Investments came from oversees with the

UK’s exit from the UK no longer a primary concern for investors.

• Investors are looking for durable long-income investments.

BTR provides aggregated investment stock offering exposure to UK residential real estate with stable annually grown income streams and low volatility of returns.

• UK Government is supportive of the sector particularly

through professionally managed BTR housing.

• Positive policy environment.

19

WATKIN JONES OPPORTUNITY

20

FRESH P H PROPERTY Y GRO ROUP

Oxford House, Bournemouth 486 Beds | Due for completion August 2018

21

16, 617 Total Units Under Management 358 Total Staff 75

Central Services Staff

16,185 PBSA Beds Under Management 53 Number of PBSA Schemes 532

BTR Units Under Management

5 Number Of BTR Schemes

58

Total Number of Schemes

£108m Cash Under Management. £1.5bn Assets Under Management

KEY FACTS

22

GROUP F P FINANCIALS

Duncan H House se, S Stratford 511 Student Beds & 45 Residential Units | Due for completion August 2019

IN INCOME S STATEM EMENT NT

Group I Income St Stat atement ( (Co Continuing o

• perations)

(I (IFRS RS) £ millio ion

Ha Half lf Ye Year 31 31 Mar 201 2018 Ha Half lf Ye Year 31 M 31 Mar 201 2017 Full Ye ll Year 30 S 30 Sep 201 2017

Student accommodation 142.2 115.2 256.1 Build to rent 0.6 0.6 1.2 Residential 5.3 5.6 18.1 Accommodation management 3.7 3.0 6.1 Corporate 6.5 9.3 20.4 Revenue 158.3 133.7 301.9 Student accommodation 29.4 25.0 56.5 Build to rent 0.3 0.4 0.7 Residential 0.5 0.7 3.0 Accommodation management 2.4 1.9 3.8 Corporate 1.9 1.1 (0.5) Gross profit 34. 34.5 29. 29.1 63. 63.5 Gross Margin 21.8% 21.8% 21.0% Overheads (10.7) (9.7) (20.8) Operating profit 23. 23.8 19. 19.4 42. 42.7 Operating Margin 15.0% 14.5% 14.1% Profit on disposal of interest in joint venture 0.1 0.9 0.9 Share of profit in joint ventures

• 1.1

0.5 Net finance costs (0.3) (0.3) (0.8) Profit before tax 23.6 21.1 43.3 EBITDA 24. 24.5 21. 21.9 45. 45.2 EBITDA Margin 15.5% 16.4% 15.0%

23

Revenue by Division (£ million)

Student Accommodation Accommodation Management Residential Build to Rent Corporate

Gross Profit by Division (£ million)

Student Accommodation Accommodation Management Residential Build to Rent Corporate

SEGME MENTAL AL S SUMMAR MMARY

Reven enue e and Gros

• ss Prof
• fit

it b by y Segm egment

24

• Revenues for H1 FY18 up by 23.5% to £142.2

million, reflecting good build progress in the period

• n forward sold developments for delivery in FY18

and FY19.

• Gross margin remained strong at 20.7% (H1 FY17:

21.7%). Reduction compared to H1 FY17 due to high margin contribution from certain developments completed in FY17.

• Robust student accommodation pipeline of over

10,300 beds provides excellent earnings and cashflow visibility.

Student accommodation (£ million) Build to rent (£ million)

• Build to rent segment reported for the first time in

FY17.

• Revenues of £0.6m for H1 FY18 consistent with H1

FY17 and represent rental income from the Group’s completed build to rent stock in Sheffield and Droylsden.

• Construction works to commence on the 315

apartment scheme in Reading for M&G, which will contribute to build to rent revenues and earnings in H2 FY18.

142.2 115.2 256.1 29.4 25.0 56.5

HI 2018 HI 2017 FY 2017 Revenue Gross Profit

0.6 0.6 1.2 0.3 0.4 0.7

HI 2018 HI 2017 FY 2017 Revenue Gross Profit

SEGME MENTAL AL S SUMMAR MMARY

Reven enue e and Gros

• ss Prof
• fit

it b by y Segm egment

25

Accommodation management (£ million) Residential (£ million)

• 21 sales completions in H1 FY18, compared to 31 for

H1 FY17, reflecting the current seasonality of the business, with sales heavily weighted to the second half as new developments in build come on stream.

• 67 sales legally exchanged or reserved at 31 March

2018 (31 March 2017: 31 sales exchanged/reserved).

• Revenues for the half year of £5.3 million compared to

£5.7 million for H1 FY17. The reduction in sales value is attributable to sales from legacy sites at nil margin, which amounted to £1.9 million for H1 FY18, compared to £2.9 million for H1 FY17.

• Revenues for the Fresh Property Group (“FPG”) up

25.7% to £3.7 million for the half year, reflecting an increase in student beds under management to 16,185 beds across 53 schemes, compared to 12,117 beds across 43 schemes for H1 FY17.

• Gross margin increased to 65.3% compared to 63.2%

for H1 FY17.

• FPG will be fully compensated for the loss of revenues

associated with the early termination of the management contracts relating to the sale of the portfolio of assets by the Curlew Student Trust.

• Curlew Capital have successfully launched Curlew

Student Trust 2, for which FPG is the preferred property manager and creates the potential for longer term business growth.

5.3 5.6 18.1 0.5 0.7 3.0

HI 2018 HI 2017 FY 2017 Revenue Gross Profit

3.7 3.0 6.1 2.4 1.9 3.8

HI 2018 HI 2017 FY 2017 Revenue Gross Profit

STATEM EMENT NT O OF FIN INANCIA IAL P POSIT ITIO ION

Group Statement of Financial Position (IFRS) £ million

31 M 31 Mar 201 2018 31 M 31 Mar 201 2017 30 S Sept pt 201 2017

Intangible assets 14.7 15.2 15.0 Property, plant and equipment 5.0 3.1 4.9 Investment in joint ventures 1.5 0.7 1.8 Deferred tax asset 0.5 0.3 0.3 Other financial assets 1.2 2.6 2.7 Non-current assets 22.9 21.9 24.7 Inventory and WIP 145.6 126.0 125.2 Trade and other receivables 27.4 20.9 36.3 Cash and cash equivalents 61.6 25.1 65.3 Current assets 234.6 172.0 226.8 Total assets 257.5 193.9 251.5 Trade and other payables (91.2) (57.0) (88.7) Provisions (0.7) (0.3) (0.7) Interest bearing loans and borrowings (1.4) (4.3) (1.5) Current tax liabilities (4.6) (7.0) (8.2) Current liabilities (97.9) (68.6) (99.1) Interest bearing loans and borrowings (21.9) (9.1) (22.8) Deferred tax liabilities (1.4) (1.1) (1.4) Provisions (2.0) (2.0) (2.0) Non-current liabilities (25.3) (12.2) (26.2) Total liabilities (123.2) (80.8) (125.3) Net assets 134.3 113.1 126.2

26

• Intangible assets of £14.7 million at 31

March 2018 relate to Fresh.

• Investment in joint ventures reduced by

£0.3 million since 30 September 2017 as a result of the disposal of the Group’s interest in Rufus Estates Limited.

• Other financial assets reduced by £1.5

million as a result a partial distribution from the Curlew Student Fund following the sale of the portfolio of assets.

• Inventory and WIP increased by £20.3

million, reflecting a modest level of investment in new student accommodation and build to rent sites, as well as an increase in residential WIP relating to new developments in build which will deliver sales in H2.

• Strong cash performance. Cash

maintained at £61.6 million, despite the normal utilisation of cash in the first half

• f the year.
• Net cash of £38.4 million (H1 FY17: £11.7

million).

STATE TEMENT O T OF CASH SH F FLOWS

Group Statement of Cash Flows £ million

Ha Half lf Ye Year 31 M 31 Mar 201 2018 Ha Half lf Ye Year 31 M 31 Mar 201 2017 Full Ye ll Year 30 S 30 Sept 201 2017

Operating profit 23.8 19.4 42.7 Depreciation and amortisation 0.5 0.4 1.0 (Increase)/decrease in working capital (8.7) (36.3) (18.4) Finance costs paid (0.3) (0.4) (1.0) Tax paid (8.3) (3.1) (5.1) Net cash i inflo low/ w/(outflow) w) f from o

• perating a

activities 7.0 .0 (20. 20.0) 19. 19.2 Net cash flow from purchase of fixed assets (0.4) (0.4) (0.3) Cash flow from joint venture interests 0.3 7.6 5.6 Cash distribution from other financial assets 1.7

• Dividends paid

(11.2) (6.8) (12.4) Cash flow from borrowings (1.1) (2.5) 6.0 (Decrease)/increase in cash (3.7) (22.1) 18.1 Cash at beginning of period 65.3 47.2 47.2 Cash at end of period 61.6 25.1 65.3 Less: borrowings (23.2) (13.4) (24.3) Net cash 38.4 11.7 41.0

27

• £7.0 million net cash inflow from
• perating activities after absorbing

£8.7 million into working capital and tax paid of £8.3 million.

• £1.7 million received as a partial

distribution from the Curlew Student Fund.

• £11.2 million dividends paid. Interim

dividend of 2.47 pence will cost £6.3 million.

• £1.1 million net cash outflow from

borrowings.

• Cash balance of £61.6 million

increased by £36.5 million compared to H1 FY17.

• Net cash of £38.4 million after

deducting borrowings of £23.2 million.

28

THE M E MOD ODEL

Hollis Croft, Sheffield 972 Beds | Due for completion July 2019

…PROVID IDES ES AN EN END T TO EN END S SOLUTIO ION

29

Identify site Negotiation of

• ption /

acquisition Obtain planning permission Discussions with University/ key stakeholders Value added

• pportunities

Land sale & development agreement Construction Asset management

SITE PROCUREMENT & PLANNING TRANSACTION AND FUNDING CONSTRUC UCTIO ION A AND DELIVERY RY SCHEME MANAGEMENT

Forward sale to Institutional investors Typically 2 ½ years 3 - 7 years

Forward sell site to fund on receipt of planning For £6.0 m mil illion Additional Planning gain payment from fund on receipt of planning Say £ £1.0 .0 m milli lion

• n

Profit: £1.7 .7 m milli lion

• n (

(£7M i M in less £ £5M l M land less 3 ss 3rd Par Party p plan anning c costs o

• f £300K)

Build costs £22.7 m million Construction & Development Profit £5.3 million

• Paid monthly over course of build
• Typical 10% retention released
• n completion

Refundable deposit (10%) Typically £ £500,000 00 3rd party planning cost Say £ £300 00,000 Consultancy/build £20,000 00/sche heme Mobilisation/build £150/bed Management/per annum £320/bed

• NB. All operational costs paid by

landlord/leaseholder Typical Top Down Appraisal • Say 500 Bed Scheme X Rent X Term X Yield = Gross Development Value less 20% Return Hurdle = Balance for Build, Funding Cost and Land acquisition cost Theoretical Example of funding for a Development with a GDV of £35M and land cost of £5M

Cash flow:

+£2.5 million (Uplift on land + Planning Gain Payment + Deposit

Cash flow:

+£5.3 million

Cash flow:

(£0.8) million (Deposit + 3rd party Planning Fees)

Cash flow:

+£160,000 p.a.

This presentation is for information purposes only and no reliance may be placed up on it. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this presentation. The financial information referenced in this presentation does not contain sufficient detail to allow a full understanding of the results of Watkin Jones plc (“Watkin Jones”). For more detailed information, please see the full year results announcement for the twelve months ended 30 September 2017 which can be found on the Investors section of the Watkin Jones website - www.watkinjonesplc.com. This presentation does not constitute or form part of any offer or invitation for sale or subscription of, or any solicitation of any offer to buy or subscribe for, any securities of Watkin Jones. The making of this presentation does not constitute a recommendation regarding any such securities. Any projections or other forward-looking statements are made by the Directors of Watkin Jones in good faith based on the information available to them at 22 May 2018 and reflect the Directors’ knowledge and information available at that date and their beliefs and expectations. These statements may involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward‐looking statements. Any

• f the assumptions underlying these forward‐looking statements could prove inaccurate or incorrect and therefore any

results contemplated in the forward‐looking statements may not actually be achieved. Unless otherwise required by applicable law, regulation or accounting standard, Watkin Jones does not intend to update any projections or other forward-looking statements contained in this presentation. Each forward-looking statement speaks only as at 22 May 2018 and Watkin Jones and its advisers expressly disclaim any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in the presentation is intended to be, or intended to be construed as, a profit forecast or profit estimate and no statement in the presentation should be interpreted to mean that earnings per Watkin Jones share for the current or future financial years will necessarily match or exceed the historical earnings per Watkin Jones share. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. Past performance of securities in Watkin Jones cannot be relied upon as a guide to the future performance of such securities.

DISCL CLAIME MER

30

Mark Watkin Jones Philip Byrom Chief Executive Officer Chief Financial Officer

Watkin Jones plc Llandygai Industrial Estate Bangor Gwynedd LL57 4YH www.watkinjones.com