Redrow (RDW)

A company in a turnaround situation enjoys internal drivers for growth which are often independent of what is happening in the wider market. This helps explain why Bovis Homes (BVS) commands a higher valuation than many of its mid-cap peers in the housebuilding sector as industry veteran Greg Fitzgerald continues his successful restructuring of the group. GOOD RECEPTION FOR RESULTS The ...

Shares in the world's biggest advertising agency WPP (WPP) plunge more than 7% to £11.88 in early trade on Tuesday, heading the FTSE 100 loser board, after posting lower revenues in its first half results. The group, which confirmed Mark Read as its new chief executive yesterday, also raised its sales expectations for the full year, not that investors are giving it much credit for doing ...

All economies experience recurring and fluctuating levels of economic activity over time, with the five main stages of the business cycle running as follows: growth, peak, recession, trough and recovery. The business cycle is usually replicated in the stock market with the market going up when the economy is growing and going down when it is contracting. Different types of stocks tend to perform ...

Investors looking to profit from a bargain-hunting style of investing should snap up Aurora Investment Trust (ARR) as it provides exposure to high quality businesses with huge upside potential. Aurora trades at a near-3% premium to net asset value (NAV) of 213.63p, yet Shares believes this is more than merited by the manager’s superb track record, while the announcement (18 Jun) of a ...

The housebuilding sector is in the doldrums this morning as releases from Crest Nicholson (CRST) and Bellway (BWY) add to fears the sector’s level of profitability may have peaked. Crest Nicholson slumps 5.9% to 420p on downbeat first half results and Bellway sinks 2.4% to 33.26 on a mixed quarterly update. They are followed lower by peers such as Persimmon (PSN) down 1.5% at £28.18 and ...

Mid cap housebuilder Crest Nicholson (CRST) is slammed by the market as it guides for margins to be at the bottom end of full year guidance. That implies between 18% and 20%. Its shares slump 11.9% to 435p. Sector peers also trade lower in its wake, including Persimmon (PSN) down 1.1% to £27.86 and Redrow (RDW) off 1.8% to 635.5p. Crest attributes the pressure on margins to a 3% to ...

Housebuilder Redrow (RDW) has unveiled impressive half year results, delivering a new record for sales, pre-tax profit and its order book. Sales have jumped 20% to £890m in the six months to 31 December, supported by a 14% increase in legal completions. Demand appears to remain resilient despite concerns over stalling house price growth and a potential slowdown in transactions. Annual ...

European markets are in recovery mode on Wednesday, investors regaining confidence following yesterday’s gains on Wall Street and the FTSE 100 and FTSE 250 rebounding by 49.4 points to 7,191 and 105.3 points to 19,368 respectively. Among the blue chips, unloved tobacco titan Imperial Brands (IMB) wafts 3p lower to £27.27 despite a reassuring AGM trading update. Though the ...

A lack of guidance on margin performance in today’s trading update helps sink shares in the UK’s largest housebuilder Barratt Developments (BDEV). It falls 2.5% to 618.6p. Barratt is the latest name in the sector to see a negative share price reaction to a fairly solid looking statement, suggesting sentiment towards housebuilders may be on the turn. In its first half to 31 December the ...

A see-saw week or so for the housebuilders continues. Mid cap operator Crest Nicholson (CRST) saw its share price fall 4.4% to 496.2p after flagging weakness in central London house prices on Wednesday. Larger peer Barratt Developments (BDEV), a FTSE 100 company, is also seeing slight weakness in its share price on flat first quarter sales. RISK TO FORECASTS Shore Capital analyst Robin ...

A rally in the housebuilding sector on expectations of further state support in the Budget on 22 November is coming to a juddering halt amid sceptical analyst comment, a slowdown in mortgage approvals and data which reveals the perilous state of Government finances. Investors have to decide if the housebuilders can continue to grow earnings and cash flow regardless, supported by an ongoing ...

Flintshire-headquartered Redrow (RDW) appears to be the winner of the latest set of financial results from the housebuilding sector. We also note that investor sentiment has finally turned positive towards Bovis Homes (BVS). Its recovery plan was well received last week, helping to shift the focus away from an earlier scandal over the quality of its construction. Why has Redrow emerged ...

The FTSE 100 opens in positive territory, up 8.8 points to 7,422.41 thanks in particular to gains in mining stocks and various financial services companies. At the top of the FTSE leaderboard is equipment rental firm Ashtead (AHT), rising 5.9% to £17.84 after releasing good results for its first quarter to 31 July and amid hopes it will benefit from hurricane clean-up work in the US. Its ...

Housebuilder Redrow (RDW) continues to defy any concerns over the sector as it raises guidance for profit and dividends in the June 2020 financial year. Alongside record results (5 Sep) for the 12 months to 30 June 2017, the company says it expects to post a pre-tax profit of £430m and pay a dividend of 32p compared with £315m and 17p in the year just ended. Year-to-date the shares are up 50% at ...

Housebuilder Barratt Developments (BDEV) has delivered a strong set of numbers, but the market may be disappointed that the company met its 20% full year gross margin target, instead of exceeding it. The disconnect between the numbers and market expectations has punished the stock, which has fallen 4% to 600.5p. In the year to 30 June 2017, gross margins were up 1.1% to 20% under ...

Housebuilder Redrow (RDW) has set ambitious targets for 2020 of approximately £2.2bn in turnover and pre-tax profit of £430m thanks to its strong performance and robust demand. Sales have increased 20% to £1.66bn, driven by higher legal completions and a 7% rise in the the average selling price to £309,800 in the year to 30 June 2017. The company also anticipates the dividend will rise ...

British engineering software company AVEVA (AVV) has agreed a merger deal with long-run suitor Schneider Electric of France. The deal, worth in excess of £3bn, will create one Britain’s biggest software businesses and, importantly, will remain listed on the London stock market. This move for predicted by Shares back in November 2016 as a likely outcome following the departure of ...

A resilient housebuilding market bodes well for engineering services group Nexus Infrastructure (NEXS:AIM) which counts Countryside Properties (CSP), Taylor Wimpey (TW.) and Redrow (RDW) as customers. Nexus owns Tamdown which builds roads, undertakes earthworks, creates drainage systems and constructs reinforced concrete frames for housebuilders, mostly in the south east of England and ...

Deep value investing involves buying bargain basement shares in the hope they will eventually move back to their intrinsic value. It is a strategy that has forged the reputations of some of the world’s greatest investors. Value investing can be highly volatile and takes a lot of patience; hence many fund managers shy away from it. Among the notable exceptions are Nick Kirrage and Kevin ...

Failing to pick the right stocks is one of the biggest reasons why individual investors struggle to make money on the stock market. Don’t despair; we are help to help. We believe an investment journey can be greatly enhanced by following a few simple steps in order to filter out the bad stocks and leave you with a universe of more interesting – and hopefully profitable – shares. In ...