Taylor Wimpey Plc climbed to the highest since the result of the U.K. referendum on European Union membership was declared after the house builder said pretax profit rose 12 percent in the first half.
Trading remained in line with normal seasonal patterns since the Brexit vote and customer interest remains high, Britain’s second-largest home builder by market value said in a statement on Tuesday. The stock rose as much as 6.3 percent and was trading at 150.6 pence at 8:33 a.m. in London.
Shares in the nation’s builders fell sharply when the Brexit vote was declared June 24 on fears that house prices would fall as the economy weakened. Values in London were already being hurt before the vote, with prices decreasing 1.4 percent in May, the biggest monthly decline since June 2011, according to data compiled by Acadata Ltd. and LSL Property Services Plc.
“The shares are 25 percent below their pre-Brexit level with little in today’s statement to justify such a fall,” Jefferies analysts including Anthony Codling wrote in a note to clients. “The group experienced a small increase in the average cancellation rate immediately following the referendum, but this has now returned back in line with recent low levels.”’
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Following the Brexit vote, Taylor Wimpey has significantly increased its investment-margin requirements when considering new land purchases, according to the statement.
The “results this morning are OK but are pre-referendum and may not provide a guide as to the company’s strategy going forward,” Whitman Howard analyst Scott Fulton said in e-mailed comments.