Taylor Wimpey’s stock rose over 4% in early morning trade on Wednesday (27 July), following the release of its H1 results which showed a 12% rise in pre-tax profits for the period ended 3 July. “We have delivered a strong operational and financial performance with continued growth in profitability, building over 6,000 new homes across the country during the first half of 2016,” said Pete Redfern, Chief Executive of Taylor Wimpey.
Total average selling price jumped 5.8% to £238,000 from £225,000 in H1 2015. The developer reported a strong order book representing 8,683 homes with a total value of £2,156 million, compared with £1,859 million in 2015.
“One month on from the EU Referendum, current trading remains in line with normal seasonal patterns. Customer interest continues to be high, with a good level of visitors both to our developments and to our website,” said Redfern.
The housebuilder reported a small increase in the average cancellation rate immediately following the referendum, however it said this remained low compared to long-term historic norms and is now back in line with recent low levels.
“Whilst it is still too early to assess what the longer term impact from the Referendum result on the housing market may be, we are encouraged by the first month’s trading and by continued competitive lending from the mortgage providers as well as the positive commentary from government and policymakers,” Redfern said.
The positive results buoyed other housebuilders’ stocks in early morning trade, with Barratt Development, Persimmon and Crest Nicholson all rising over 4%.