New figures show
Taylor Wimpey has released a brief trading update prior to its AGM. In it, the group confirmed the housing market has remained stable in the first four months of 2018, although business was impacted by the poor weather in early March.
The shares fell 2.9 per cent on the news.
George Salmon, Equity Analyst at Hargreaves Lansdown:
“Taylor Wimpey says the weather impacted sales in the early part of the year, although we can’t help but notice fellow builder Persimmon delivered strong numbers just 24 hours before this update, and didn’t mention any such headwinds from the cold snap.
“Having said that, there’s not too much wrong with what Taylor Wimpey has reported. Sales rates are still high by historic standards, and cancellations remain rare. The group is confident of hitting targets for the year, despite the hiccup from the poor weather. In the short-term at least, the presence of government support, combined with high employment levels and low interest rates means there are plenty of reasons for its optimism.
“Increased profitability and a strong balance sheet support the generous dividend on offer, but investors should be mindful that conditions in the housing game can change quickly, and without much warning.”