Cash boost at Watkin Jones
Residential rental and student accommodation properties developer Watkin Jones is on course to achieve forecast 2020-21 pre-tax profit of £50m, but net cash will be much higher than expected. Institutional demand for developments remains strong.
The forecast profit is being achieved on lower than expected revenues because of the timing of land sales. Net cash was £125m at the end of September 2021.
Building costs are in line with budget even though there are inflationary pressures. There are 4,012 build to rent apartments and 7,142 student beds with planning permission. This is a total future revenue value of £1.75bn.
Knights moves into North East
Legal services provider Knights Group has broadened its geographic footprint by acquiring Stockton-on-Tees-based Archers Law. A new £60m revolving credit facility lasting until October 2024 has been agreed with three banks.
Knights is paying the four existing partners £5.2m. The initial payment is £3.7m - £2.1m in cash and £1.6m in shares. The other £1.5m will be paid in equal annual instalments.
In the year to March 2021, Archers generated revenues of £4mand the underlying pre-tax profit margin should be around 20% when it is run as a company rather than a partnership. Knights believes that it can increase that profit margin to 30%, making the deal earnings enhancing.
Catanae moves to Avenir Registrars
Avenir is delighted to announce that the digital media company Catenae Innovation is the latest AIM-quoted issuer to migrate its registry function to Avenir Registrars, which provides efficient and value for money services.
The company has been in focus in recent months after it was invited to take part in the development of the UK Government’s Digital Identity Policy and has also developed a secure, blockchain technology to provide proof of an individual’s COVID-19 status.
Earlier this year, AIM-quoted, Ireland-based resources companies Conroy Gold and Natural Resources and Karelian Diamonds Resources chose to move their registrar requirements to Avenir Registrars.
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