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Watkin Jones has reported a pre-tax loss for the first half of the year due to building safety provisions and reduced transactions.

The housebuilder, which specialises in build-to-rent and student accommodation, said its pre-tax loss for the six months ending 31 March was 拢900,000, down from a 拢2.1m profit in the same period the previous year.

When one-off costs related to its building safety provision are excluded, the group鈥檚 profit fell from 拢3.4m to 拢200,000. Operating profit fell from 拢4m to 拢400,000.

Group revenue was down 26% to 拢129m which the firm said 鈥渞eflects the continued lower level of transactional activity鈥� along with a forward sale of a scheme in Bristol boosting the previous year鈥檚 figure.

The group鈥檚 build-to-rent business saw a 9.5% drop in income, while its student accommodation revenue more than halved from 拢61m to 拢25.6m.

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But revenue at its asset refurbishment arm Refresh increased from 拢500,000 to 拢4.3m, which it said 鈥渞eflected the division鈥檚 success in an emerging market鈥�.

Its gross margin was 11.1%, ahead of last year鈥檚 figure of 10.5% and in line with its previous forecast.

Alex Pease, chief executive of Watkin Jones, said: 鈥淚 am pleased to report that trading in the first half was in line with our expectations, despite the continuing challenging market backdrop, as a result of our focus on operational delivery, cost management and cash generation.鈥�