Taylor Wimpey (TW.), Watkin Jones (WJG), Associated British Foods (ABF), Videndum (VID), RWS (RWS) and AB Dynamics (APDP)
Cautious optimism continues to build among housebuilders, with Taylor Wimpey (TW.) chief executive Jennie Daly flagging a “good start” to its spring selling season. The company reported a net sales rate of 0.73 per outlet per week, compared with 0.75 this time last year, the company said ahead of its annual general meeting.
Although challenges remain around housing affordability, Daly said it was pleasing to see “continued market stability supported by good mortgage availability and sustained customer confidence”. The company left full-year guidance unchanged, and its share price edged up 1 per cent in early trading.
Meanwhile, a reassuring trading update from Watkin Jones (WJG) lifted its shares by 5 per cent. The company reiterated trading in the six months to March was driven largely by work on forward-sold developments, which it had said in January would bring in £300mn in revenue this year, covering its costs. It made a margin of around 10 per cent on this work and forward sold another 260-bed student property scheme in Bristol last month. Its net cash figure was largely unchanged, at £44mn. MF
Read more: What to expect from housebuilders
Associated British Foods’ profit soars as supply chain pressures ease
Associated British Foods (ABF) shares rose 9 per cent in early trading after the Primark owner beat market expectations.
The company’s adjusted operating profit grew 39 per cent to £951mn in its interim period to 2 March. Chief executive George Weston said it was down to “the restoration of some normality in our markets and supply chains”.
Revenue rose 2 per cent to £9.73bn on the back of a 6 per cent uplift at Primark, which widened its adjusted operating margin from 8.3 per cent to 11.3 per cent year-on-year. Management raised the interim dividend by 46 per cent to 20.7p. CA
Read more: Which consumer stocks will come out on top?
Profit slumps at RWS
Shares in RWS (RWS) fell 13 per cent this morning after it revealed that profit sank by 17 per cent to £45mn in the six months to 31 March. The translation specialist blamed this on
a weaker performance in higher margin businesses, an unfavourable mix of language services work, ongoing investments and currency movements. RWS’s share price has fallen 35 per cent over the past year. JS
