Taylor Wimpey Climbs as House Prices Widen Margins: London MoverPatrick Gower
Taylor Wimpey Plc, the U.K.’s third-largest homebuilder by market value, rose the most in 10 months after the improving housing market prompted the company to raise expectations for profitability.
Taylor Wimpey climbed 7.6 percent, the biggest advance since July 4, to close at 114.4 pence in London. The company said it expects operating margins to widen by at least 300 basis points this year. The target for average operating margin is 20 percent from 2015 to 2017, the High Wycombe-based company said today in a statement. A basis point is 0.01 percentage point.
Britain’s housing market has been bolstered by a strengthening economy, record-low borrowing costs and the government’s Help to Buy loan-guarantee program. House prices climbed 6.8 percent in April from a year earlier, mortgage lender Halifax said this month.
Barratt Developments Plc, the second-biggest U.K. homebuilder by market value, said last week it would reach return-on-capital-employed goals significantly earlier than planned after a jump in advanced sales.