Residential developer Watkin Jones has announced a £43m loss, which has been attributed to additional expenses incurred for building safety remedial works and restructuring
The additional expenses included a £35m provision for building safety remedial works, expected to be spread over a period of up to five years.
There was also a one-off restructuring cost of £3.1m. This was associated with the realignment of the group’s cost base.
Watkin Jones also incurred a £4.6m book loss
The company also incurred a £4.6m book loss on the sale of three private rental sector assets and incurred a charge of £5.5m on non-core land bank and certain pipeline assets that are no longer economically viable.
Speaking on the company’s financial results, Alex Pease, chief executive officer of Watkin Jones, said: “Significant cost inflation and volatility in real estate funding markets meant that 2023 represented a period of unprecedented challenge for the business.”
“However, I am pleased that against this backdrop the group demonstrated resilience and agility, taking a number of important actions operationally.
“Whilst funding conditions remain difficult, the outlook is gradually improving and the strong asset performance in PBSA and BTR sectors gives me confidence in the longer-term market recovery and return to growth.”
