Taylor Wimpey unfazed by post-referendum uncertainty

The Daily Telegraph writes…House builder Taylor Wimpey is “unfazed” by post-referendum uncertainty in the market, predicting that its profits will be at the higher end of analysts’ expectations.

The company, which is one of the biggest house builders in the country, said that trading had been “robust” in the second half of the year. During 2016, the number of completions increased by 4pc last year, and cancellation rates were similar to those of 2015, at 13pc.

It added that the average selling price of their homes increased by 13pc to £286,000, and it had ended the year in a strong position with more cash than last year, even after paying dividends, at £365m, up from £223m in 2015.

Anthony Codling, an analyst at Jefferies, said the company was “unfazed by the uncertainty in the wider economy”.

He added: “It appears to us that the current market conditions are more suited to those house builders focused on delivery rather than growth.”

The news came after another large house builder Persimmon reported positive news about trading, with Barratt expected to do the same later this week.

George Salmon, an analyst at Hargreaves Lansdown, said: “Today’s numbers are reassuring in the context of the wider uncertainty around the sector, and in fact Taylor Wimpey shares have been on a strong run in recent weeks, with a steady flow of positive news boosting the UK’s builders.”

Ryan Mangold-Taylor, the chief financial officer, said: “We feel we are in a strong position. We appreciate there is a wider macroeconomic uncertainty, but for the time being our customers seem confident. The market is open for business.”

Taylor Wimpey’s share price remains below its pre-referendum peak, like other house builders. Its shares were down almost 1.5pc in early trading.