(Alliance News) - Watkin Jones PLC on Tuesday said it has swung to a loss, following "significant cost inflation and volatility" in the real estate funding market.

Watkin Jones is a London-based student accommodation developer and manager. Its shares were down 5.8% to 49.65 pence each in London on Tuesday afternoon.

Revenue in the financial year ended September 30 rose 1.5% to GBP413.2 million from GBP407.1 million a year earlier.

The company swung to a pretax loss widened to GBP42.5 million from a profit of GBP18.4 million.

Administrative expenses in the year climbed to GBP72.8 million from GBP43.4 million. Cost of sales climbed to GBP378.4 million from GBP339.5 million.

For the full-year, Watkin Jones said it has paid out a dividend of 1.4p, down 81% from 7.4p a year ago. It has not declared a final dividend "given the uncertain market backdrop."

Looking ahead, Watkin Jones expects to report an adjusted operating profit between GBP15 million to GBP20 million for financial 2024. This is in line with guidance announced back in October.

Chief Executive Officer Alex Pease said: "Significant cost inflation and volatility in real estate funding markets meant that FY23 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."

By Sophie Rose, Alliance News senior reporter

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