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which companies are most exposed anyone know, they say TW is the least.
CRST have announced the robbery of £120m by Gove but nothing from the other builders yet ????
I guess that the "Analysts" will now be factoring this decision into their forecasts, given appropriate guidance from the builders. We can expect a few upgrades to their current guidance soon.
Also, because of the significance of this press release (when official one is released) each building company will likely issue an RNS detailing their actual obligations, and any further increase / reduction in exceptional costs to be taken in their accounts.
Here we go:
(Sharecast News) - Shares of London-listed housebuilders rallied on Monday following a report the government is dropping its demand for them to contribute towards a £4bn cladding remediation fund.
The government is embroiled in discussions with the Home Builders Federation (HBF) over a plan to remediate dangerous cladding on buildings of between 11 metres and 18 metres high. Housing secretary Michael Gove had set a deadline of Thursday 31 March for an agreement to be made.
I can’t find anything , News due any day on cladding so seems very likely .
Sudden leap for all HB's from around 9.45 this morning, anyone heard if it's related to a resolution of the cladding issue? If it is, looks like it's not a bad one.
They did purchase a good chunk on Friday 5.5m of shares.
Now being cancelled.
Almost there.
https://www.insidehousing.co.uk/news/news/deal-between-government-and-large-house-builders-on-fire-safety-costs-close-74945
Seems Gove has agreed to kick the issue of who pays for "orphan" developments into the long grass. Although not a totally clean resolution, and it still leaves a question mark hanging over the builders for the future, hopefully an announcement should remove current uncertainty and allow some recovery in share prices.
The builders (via HBF) have taken legal advice and it seems that UK GOV cannot make them pay for remediation on developments that they had nothing to do with, i.e. the "orphan" developments. Perhaps this is a red line for the builders, and Gove will still claim victory and spout in public how he (the Tories) have rung this money out of the builders (when most were getting on with remediation at their own cost anyway).
The tax payer will likely have to put right the "orphan" developments unless UK GOV spends time and money trying to chase down those developers, which I doubt as Gove got involved to play politics and win votes. Actually getting the job done comes secondary !
"I can't fathom why we haven't seemed to track other housebuilders, seemed to languish out of sync."
.................................
Damo, I don't know how far back you are taking your comparison, but for this year to date ~ for the companies which I track at least ~ share price performances are:
Barratt minus 31%
Bovis minus 20%
Bellway minus 27%
Crest minus 27%
Persimmon minus 25%
Redrow minus 26%
Taylor Wimps minus 25%
So, aside from Bovis, Wimps are joint best (or, perhaps more accurately, least worse) in show.
So, maybe with regards to this at least, your concern is greater than is perhaps called for…?
And in the meantime, we just have to wait to see how successful Gove has been in trying to morph into Tony Soprano in his attempt to shake down the entire house building sector...?
Strictly
marybe190; spot on your post.
I can't fathom why we haven't seemed to track other housebuilders, seemed to languish out of sync.
I actually think TW were ahead of the game, and made provisions before any political machinations, took a first mover status on accepting some remedy was needed, and were forefront in acknowledging their part, their obligations to remedy.
That gives me great confidence, that going forward, the management are delivering, and, at some point the 'market' will recognise that, and correct our 'ugly duckling' status. I think it will be slow yet sure.
I think the impact of tailing off of Govt support schemes to buy is overstated. Yes they have provided a fillip, but that fillip has just disguised the dynamics of the market. There are still not enough homes being built for the need. And that need will always find a market for TW to fill.
19 analysts at the FT have gave Taylor Wimpey a 12 month price target of £2 or 52 percent or a bottom of £1.20.
IC were saying margins are healthy as of March.
Genuinely think the price should be £1.80 over the next few months, after the cladding issue.
Good for 12 months, until the commercial banks are not able to recovery reckless lending again and come in for everyone’s physical assets.
Then bump these back up the food chain to pay government debts.
Silver and gold are money, everything else is just hype and confidence in the economy.
The silver to gold ratio is massive and at 17.5 parts silver to 1 part gold.
Silver should demand a price of £85 an ounce, excluding vat.
I hold in it’s physical form, because I’m informed that paper gold has three owners for 1 piece.
Plus in the event of war, it will become difficult to access.
Cladding has been politcal from the start and considering the mad billions scare stories at the start, the final solution will be much more moderate.
Let's get it settled, TW. have already provided for the cladding so should be a non story.
The news really is more of the same, building costs coming down again, the costs have been passed on to the buyer, great housing volumes, great land bank purchases a year of so and interest rates rising modestly with inflation flattening over the year.
TW. ex div a few days ago and rising again.
The world is good.
Look around, cranes and building everywhere, non stop.
Good for the rest of the year imho.
DYOR
Robert Noel TW director bought 37,426 shares at 1.32,09 yesterday so with dealing costs that's about 50 thousands pounds worth.
He must be quite confident for some upside to happen soon.
I've followed his lead and added some more.
It would be unthinkable to accept responsibilty for the 'orphan' buildings (built by others who are overseas or who have vanished without trace) .........
HOUSING TODAY
By Joey Gardiner 31 March 2022
Negotiators working on text of “pledge” to remediate housing blocks - but funding for ‘orphan’ buildings unresolved
Housing secretary Michael Gove is on the verge of agreeing a deal with the Home Builders Federation which will see housebuilders agree to repair housing blocks affected by the fire safety crisis going back 30 years, Housing Today understands.
Two separate sources close to the negotiations said the Gove’s department and the HBF were close to agreeing the wording of a pledge, which individual housebuilders would then be expected to sign, committing builders to remediate all properties above 11m built within the last 30 years with fire safety issues.
Still no white smoke re cladding settlement with UK GOV. Should be imminent, and hopefully a reasonable settlement so we can move on. Good to see a new new non exec Director buy £50k of shares.
You’re right, some will held back for management and employee share save schemes (25m shares) and the remainder cancelled.
As per buy back terms “ … To the extent permitted by law, 25 million ordinary shares purchased under the Buyback Programme will be held in treasury and the remaining shares that are purchased will be cancelled …””
So they are not cancelling then ? Or they will cancel once completed ?
If kept in Treasury, isn't it easier for them, that they'll just be dished out for Top Brass Bonuses
From today’s RNS: Following the above transaction, the Company holds 19,872,857 of its ordinary shares in treasury and has 3,629,054,608 shares in issue (excluding treasury shares).
So far they have bought back nearly 20 million shares.
Just wondered if anyone knew how far along the path Taylor Wimpey are with their share buyback ?? ..One third maybe ???...I know no investor likes to see the share price fall but from Taylor Wimpeys point of view it makes more sense to be doing the share buy back at a lower level as they will be scooping up many more shares for the same money which should make them less vulnerable to a future major shard price drop ....
Try again.
Wasn't this supposed to open 4p down today, didn't really notice that ?
I have held TW for many years, and currently have an average of 76p and hold for the dividends.
There is clearly a great deal of uncertainty around at the moment which is unlikely to change in the near future.
However one thing is for sure people will always need houses and flats to live in so investing in TW in my view is a no brainer. Personally I would be delighted if the share price does drop into the £1.20's as I will get more shares with my dividend and bring my average price down further. One day and I don't know when TW. will be back to £2,00ps and I will be one very happy chap!