Watkin Jones CEO steps down amid market uncertainty 

The North Wales-based developer’s share price dropped sharply this morning on the back of Richard Simpson’s departure and a downbeat trading update. 

Alex Pease, the Watkin Jones Group’s chief investment officer, has taken on the role of interim chief executive from today.  

The search for a permanent successor to Simpson, who joined Watkin Jones in early 2019 from Unite Students, is underway. 

Alan Giddins, chair of Watkin Jones, said: “On behalf of the board, I would like to thank Richard for his contribution to the Group over the last five years and in particular his leadership of the business through the challenges of the Covid pandemic. 

“Alex [Pease] has been a key member of the group’s executive leadership team for the last 10 years…in taking on the role of interim CEO, Alex provides continuity in what remains a very challenging backdrop for the sector, as well as significant experience in the residential for rent market, which the board believes will help enable the Group to regain momentum ahead of market conditions improving.” 

In May, Watkin Jones announced it was progressing the sale of several assets that would boost its balance sheet in this financial year. However, since then market conditions have become “more challenging”, the company said. 

In a trading update published today, Watkin Jones said the recent increases in interest rates and economic uncertainty have “impacted negatively on market liquidity” and could potentially delay the completion of the sales. 

“Our current expectation is that these challenging market conditions will persist into FY24, and against this more cautious backdrop, our FY24 profit before interest and taxes is likely to be in the range of £15m to £20m,” the trading update states. 

Watkin Jones has also reduced the combined value of some of its assets by £10m. 

“In the event that we do not complete any new forward sales in the balance of the year, and taking into account the [£10m] impairment charge, we would not expect to materially improve on the underlying PBIT recorded in H1 of £2m,” the company said.  

Watkin Jones is also increasing its exceptional provision for remedial works for legacy properties by an additional £30m to £35m.  

At the time of writing, Watkin Jones’ share price was 49.89p, down 35% from 76.60p yesterday.