- Watkin Jones
- 21 August 2024 11:58:03
Source: Sharecast
Watkin Jones said it now expects adjusted operating profit for the year ending 30 September to be in the range of £10m to £12m, up from £0.2m the year before but well below guidance given in May of "at least £15m".
The company said that market activity over the summer has been more subdued than anticipated, which it blamed on the "continued uncertainty over the pace of interest rate cuts".
"As such we believe it is now unlikely that we will close any further transactions before the financial year end," it said.
Looking ahead, the company said that the move to cut interest rates by the Bank of England in early August, together with future cuts expected, should help improve forward fund liquidity.
However, the lower number of transactions this year will have a knock-on impact on the fiscal year ending September 2025, given that schemes will not contribute to revenue in future periods until they are forward sold. This means that adjusted operating profits are likely not to grow next year, Watkin Jones warned.
The stock was down 29.5% at 35.9p by 1127 BST, dropping to a level not seen since November 2023.