(Bloomberg) -- Watkin Jones Plc shares plunged the most in over a year in London trading after the UK developer said it’s exploring longer-term funding options as the slowdown in the property market limits its ability to grow profit.
Continued uncertainty over the pace of interest rate cuts means it’s unlikely the company will close any further transactions in the year ending Sept. 30, it said in a trading statement on Wednesday. It now expects adjusted operating profit of £10 million ($13 million) to £12 million — down from its previous forecast of at least £15 million — and warned that earnings will probably fall further in fiscal 2025.
“While it is possible to deliver year on year progress in fiscal 2025, this would require market conditions to improve at a faster pace as we enter the new financial year,” it said.
Although a continued shortage of rental and student properties and an improving interest rate environment may spur growth down the line, its net cash position is “a limiting factor on the extent to which we can take advantage of market conditions and further develop our pipeline,” it said.
As a result, the company is reviewing “a range of options that may be available to enhance its medium and longer term funding position,” it said.
The shares traded down 29% at 36.10 pence as of 9:43 a.m. London time after falling as much as 33%.
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