But £7m of further provisions for building safety works scope changes eroded the £3.6m trading profit to a reported pre-tax loss of £300,000 in the year to September 2024.

Alex Pease, chief executive officer of Watkin Jones, said the investment market was now showing signs of recovery after a challenging year, which saw revenue slide 14% to £362m.

He added that demand for purpose buiit student accommodation was continuing to support Watkin Jones’ pipeline of work.

The firm’s new refurbishment and building upgrade arm also made an encouraging start in its first year.

During the year, Watkin Jones achieved planning for a further 2,600 student beds, across four schemes and secured two further student accommodation development sites, subject to planning.

“The group produced a resilient operational performance during 2024, in what remains a difficult investment market, said Pease.

“The slow pace of interest rate cuts and timing of the general election meant that, while investor sentiment remained positive, transactional activity has not improved as quickly as expected.

“We responded by focusing on the factors within our control: successfully delivering our in-build projects and carefully managing our costs.

“We have also continued to broaden our revenue base, opening up new sources of income through our Refresh and development partnership initiatives.

He added: “Looking to the medium term, we believe that there is an excellent opportunity in the sector and that we are well placed to take advantage of that.”